GTA President No. 3 of 2011

Circular of the GTA President No. 3 of 2011

Excellencies / Ministers

M /s. Heads of government agencies and public authorities and institutions

Al-Doha

With reference to the Income Tax Law promulgated by Law No. 21 of 2009, especially Articles 2, 3, 4, 11, 20 and 51 to 56 thereof,

Kindly consider the following:

First: Withholding Tax

Pursuant to the provisions of Article (2/11) of the aforementioned Law, you are kindly requested to withhold the tax from the amounts paid to non-residents and those who do not hold a tax card issued by the Public Revenues and Tax Department at the Ministry of Economy and Finance, taking into account the circulars issued by the Ministry in this regard, especially Circular No. (2/2011) dated 12/6/2011, regarding the seizure of the last payment and withholding tax.

Second: Providing the Ministry with Some Data:

Pursuant to the provisions of Article 21 of the aforementioned Law, you are kindly requested to submit to the Public Revenues and Tax Department at the Ministry the names and addresses of non-Qatari traders and contractors, as well as companies in which non-Qatari persons hold shares in the capital that you made contracts with them to carry out your projects or to perform any other services during the tax year, whether they are residents or non-residents, in addition to the details of the contracts concluded with them.

Payments for withholding tax in compliance with the provisions of Article (2/11) of the aforementioned law, and submitting a certificate to the taxpayer, in compliance with Article 20 of the same law.

A taxpayer who has a permanent establishment in the State may apply to the Department for the refund of the tax withheld from him unjustly.

Third: In case Payments are Made to QFC-Registered Taxpayers:

In this case, the payment of dues (including the last payment) shall be made as soon as the taxpayer submits a valid certificate issued by the competent authorities of the QFC stating that he is registered at the QFC.

Finally, the Ministry would like to mention that whoever makes payments in favor of taxpayers as described above, including Ministries, government authorities, public agencies and institutions, shall provide the Public Revenues and Tax Department at the Ministry with the details of the contracts made, in accordance with the conditions set forth in Article 38 of the Executive Regulations of the aforementioned Law (a copy is attached).

This circular cancels the provisions contrary thereto stipulated in previous circulars.

Best regards,

//Signature Affixed//

Yousef Hussein Kamal

Minister of Economy and Finance