DOHA: The Advisory Council has approved the draft law the Cabinet sent it earlier to exempt foreigners trading in Qatari stocks from tax on capital gains and on income from dividends and interest on bonds, including sukuk.
The draft law applies to foreign investment, mutual and portfolio funds. Foreign companies and individuals with subscriptions to the funds could also be exempted from tax on earnings once the law is enforced.
The Financial and Economic Affairs Committee of the council prepared a report on the draft law after the council asked it to have a fresh look at it.
The committee had originally asked the council to approve the draft law but the council objected and referred the draft back to it. The panel invited officials from the Ministry of Finance and Qatar Financial Markets Authority, the regulator of Qatar exchange, and held separate meetings to know their viewpoint on the draft law.
Both said providing tax exemption to foreigners trading in stocks is a universal phenomenon since it helps woo foreign funds into a country’s stocks. The committee in its fresh report recommended that the draft be approved.The Peninsula
