The Qatar Financial Centre (QFC) has recently published a Concessionary Statement of Practice (the Statement) for specific entities involved in FIFA competitions in Qatar. This is based on the previous commitment by the State of Qatar to exempt certain entities involved in the World Cup 2022 and the preceding FIFA football competitions from tax.
The Statement prescribes which events and entities are covered by the scope of the exemption. It further outlines the conditions which must be met in order for the exemption to be applicable alongside the advance ruling application process which must be undertaken in order to avail of same. The concessionary treatment covers the liability to tax of a QFC registered qualifying entity but does not extend to any other compliance obligations under the QFC tax legislation.
The exemption covers competitions, events or activities directly or indirectly related to the relevant competitions which are officially organised, sanctioned, endorsed or under the auspices of FIFA, the Local Organising Committee, FIFA World Cup Qatar 2022 LLC or the Hosting Association (i.e. the Qatar Football Association). Examples of such are listed in the Statement without limitation, including:
The exemption is applicable to the following entities:
The scope of the exemption covers corporate tax and any other charge, levy, penalty or interest related to same.
In accordance with the QFC Tax Regulations, the QFC Tax Department will grant a concessionary tax exemption to entities falling within the scope of the above criteria. However businesses wishing to avail of same must apply under an advance ruling procedure to the QFC Tax Department for confirmation that they are entitled to the exemption. No fee will be applicable in respect of the application.
Furthermore, the ruling will be granted provided:
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