Qatar Grants Tax Relief for Group Restructuring Gains

On March 1, 2026, Qatar published Ministerial Decision No. (3) of 2026 in the Official Gazette, granting a tax advantage for capital gains arising from group restructuring transactions. Effective from March 2, 2026, this decision aims to enhance Qatar's investment climate and promote sustainable institutional growth.

Key Provisions

• Tax Relief for Resident Companies: Companies resident in Qatar can now benefit from tax advantages when transferring assets or shares to related parties during group restructuring.
• Exemption for Resident Individuals: Capital gains of resident natural persons are exempt from income tax within the framework of restructuring parent and subsidiary companies and/or companies within the same group.

Background

Prior to this decision, Qatar's Income Tax Law No. 24 of 2018, as amended by Law No. 11 of 2022, offered limited tax advantages concerning capital gains. Generally, any sale or transfer of assets, including transactions between related parties, was subject to capital gains tax, with certain exceptions. The new decision addresses this gap by providing tax relief for capital gains resulting from the transfer of shares or assets during group restructuring.

This move aligns Qatar's tax policies with international best practices, aiming to attract more investment and support the country's economic diversification goals.