Tax Law in Qatar Research Paper Example | Topics and Well Written Essays - 750 words

Tax Law in Qatar - Research musical composition ExampleThe new Tax Law provided new views of the income. While the old system was more implicated with profits, the new law focused more on types and definition of income. According to the new law, gross income covers marrow income as well as profits from other sources. Additionally, the law indicates that the valuateable income is arrived at by subtracting losings made from the past years from the net income. Other sources of income that the new law includes in the gross income includes income bring home the bacon from the sale of sh ars, income from the sale of shares in Qatar companies, interest on the loan provided by Qatar banks, and income obtained from exploration services. The new valuate law provided some notable exemptions. Qatari citizens who were not residing in Qatar were now eligible to pay tax on the income derived in Qatar. Residents of the Gulf Cooperation Council GCC States, as well as companies fully owned by G CC residents, are treated in the same way as Qatari companies and citizens as far as tax matters are concerned (Avi-Yonah and Slemrod, 2002). One of the key aspects of the new tax is that it still allowed the GCC companies and nationals to enjoy the same exemptions as Qatar citizens. The exemptions will contain the impact on the GCC companies (Jeffs, 2008). For instance, a GCC firm that trades in Qatar but does not have a permanent location will be subjected to a specified withholding tax. One of the well-nigh notable changes in Qatar tax system was the tax place. With the elimination of the marginal system that employed rates of 0 to 35%, the taxpayers now pay a flat rate of 10%. While gargantuan companies may welcome this strategy, it is may negatively affect the smaller taxpayers (Mohamed, 2014). For instance, in the old tax system, an individual with a taxable income of 400,000 QR would pay 10% on income ranging between 100,000 and 400,000 QR.