According to the GCC VAT Framework Agreement signed by all member states, which include Qatar, Kuwait, Oman, Saudi Arabia, UAE and Bahrain, Qatar was expected to impose VAT by 1 January 2019, but for the meantime, has deferred its decision to implement VAT.
Right now Qatar does not feel the need to levy the 5% VAT decided on in the framework since the new fiscal year of 2019 is looking good for Qatar. For more details on Qatar's new fiscal year 2019,
His Highness (H.H.) the Amir Sheikh Tamim Bin Hamad Al Thani has issued the 2019 Budget Law. Salient points of the budget are as follows:
The amendments that have been made in the Income Tax law today focus on the following:
- The State budget is forecast to achieve a QR 4.3bn surplus.
- Expected revenues are based on an oil price assumption of $ 55/barrel.
- To grant more flexibility in granting tax exemptions to institutional activities in key economic sectors and economic zones.
- Major projects are allocated 43.3% of total expenditure.
- New projects worth QR 48bn will be awarded in 2019.
- QR 12bn is allocated over 5 years to develop new housing for nationals.
- Funds are allocated for the expansion of Hamad International Airport, with a total cost of QR 10bn.