UK-Qatar Tax agreement
The Double Taxation agreement between the UK and Qatar which was signed in June last year entered into force 15 October on 2010.
The new Convention follows the model approach set out in the OECD’s Model Double Taxation Convention.
The agreement seeks to avoid double taxation in relation to income tax, corporation tax and capital gains tax in the UK and the taxes on income in Qatar (referred to in the Convention as Qatari tax). Important features of the agreement include the exchange of information and zero rate withholding tax on most dividends and interest payments.
The agreement is effective from 1 January 2004 for profits, income and gains from shipping and air transport and from 1 January 2011 for taxes withheld at source, and for other taxes, in respect of tax or financial years beginning on or after 1 January 2011.