DOHA: The Qatar Financial Centre (QFC) has set a global precedent by amending its tax law in 2014 to allow cash reimbursement for tax losses, said a statement here the other day. The decision entitles 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 operation.
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. Only expenses incurred in Qatar excluding depreciation and interest costs are eligible for tax credits.
Firms claiming the benefits are required to fulfil some conditions such as it has to be a QFC entity (a limited liability company); carries on a permitted activity in or from the QFC; it has at least three full-time employees, and it has not elected to benefit from exempt status or to be taxed at the zero percent concessionary tax rate. Relevant claims can be made as part of the annual tax return to the QFC Tax Department.
