DOHA: The Qatar Financial Centre (QFC) announced here the other day that it has amended its legislation to allow cash reimbursement for tax losses.
The decision entitles certain QFC-licensed firms that launched operations after January 1, 2015, to receive cash payments for tax losses incurred in the first two accounting periods of their operations.
The QFC said: “Firms eligible for cash reimbursements will receive a payment within six months of their claim submission to the QFC Tax Department. The tax credit is calculated at a rate of eight percent on eligible losses and a QFC firm can claim up to a cumulative maximum payment of QR200,000 (USD54,900). Only expenses incurred in Qatar excluding depreciation and interest costs are eligible for tax credits.”
In order to be eligible for the tax credit, a company must fulfill a number of conditions: the company must be a limited liability company; it must carry out a permitted activity in or from the QFC; it must have at least three full-time employees; and it should not have elected to benefit from exempt status or be taxed at the zero percent concessionary tax rate.
