29 April 2026

Qatar Authorities provide updates and clarifications on Capital Gains Tax regime

Background

The Qatari Ministerial Decision No. (3) of 2026 introduces advantages to the Capital Gains Tax (CGT) regime for internal group restructurings and reorganizations. These CGT incentives are in line with international best practices and further improve Qatar’s investment climate.

In addition, the Qatari tax authorities have published a Taxpayer Guide regarding the CGT. Besides addressing the new CGT incentive for internal group reorganizations, the Guide provides further clarity on the applicable CGT regime in Qatar.

Qatar introduces capital gains tax relief for group restructuring transactions

By means Ministerial Decision No. (3) of 2026 (the Decision), Qatar has introduced a new tax incentive designed to facilitate internal group reorganizations by reducing the CGT burden on qualifying transactions. The measure is intended to support corporate restructuring, simplify group realignments and enhance Qatar’s overall investment environment.

The incentive applies to certain transfers of assets or shares within a group and may be relevant for both corporate taxpayers and individuals, subject to specific conditions. Previously, Qatar’s income tax framework offered limited capital gains exemptions, and did not generally accommodate tax‑neutral group reorganizations. The new rules are applicable to transactions carried out on or after 2 March 2026.

Application of the Capital Gains Tax incentive

The capital gains relief may apply to a range of commonly used restructuring steps, including:

Transfers of assets within a group as part of an internal reorganization;
Contributions of assets to a Qatar‑resident company in exchange for shares;
Asset transfers carried out in the context of mergers or demergers;
Restructuring steps undertaken to consolidate assets under a holding company; and
Restructuring transactions linked to an eventual listing on the Qatar Stock Exchange.

Multinational groups subject to global minimum tax rules may also be eligible, subject to specific mechanics and limitations.

The incentive is not automatic and is subject to several conditions, including:

Both the transferor and transferee must be resident in Qatar and subject to Qatar income tax;
The parties must form part of the same group for a minimum period before and after the transaction;
A high level of ownership (generally at least 75%) must exist within the group;
In most cases, transferred assets must be retained for a minimum holding period following the transaction; and
The transaction must be carried out for genuine commercial reasons.

Taxpayers seeking to benefit from the capital gains relief must submit an application to the General Tax Authority (GTA). If no response is received within 30 days, the application is treated as approved by default. However, the GTA retains the right to review compliance with the conditions after the event.

New Qatari Taxpayer Guide regarding the Capital Gains Tax

The Qatari GTA have published a new Taxpayer Guide regarding the CGT (the Guide). Besides addressing the new CGT incentive for internal group reorganizations (as per the above), the Guide provides further clarity on the applicable CGT regime in Qatar.

In Qatar, CGT applies on the realization of gains on asset transfers (such as share disposals) at a rate of 10%. For share transfers, the Guide specifically mentions that the CGT only applies to direct transfers of shares of a Qatari company, and that indirect transfers are not taxable in Qatar.

For determining the CGT for a share transfer, the gain is calculated based on the higher of the sales price or fair value, reduced by the consideration for the transferor’s share in the capital of the Qatari company. In terms of who can determine the fair value, the Guide states that either company management, or an external qualified valuator can do this, where the valuation should be supported by a detailed valuation report, to be submitted to the GTA.

Finally, the Guide confirms that in cases where an applicable Double Tax Treaty (DTT) may reduce the CGT due, the full tax liability would still need to be paid by the non-resident transferor, and a CGT declaration must be filed with the GTA. In order to obtain a DTT benefit, the non-resident transferor is required to register on the GTA’s Dhareeba system to submit (i) the CGT declaration and (ii) the standalone refund application.

Key takeaway

Qatar’s newly introduced tax incentive regarding Capital Gains Tax facilitates internal group reorganizations and improves Qatar’s investment climate.

In addition, the Qatari tax authority’s recent Guide on the application of Capital Gains Tax provides helpful clarity and guidance for taxpayers on asset transfers in Qatar.