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Qatar and Egypt eliminate double taxation

The State of Qatar and the Arab Republic of Egypt recently signed an agreement to eliminate double taxation, particularly in respect of income tax. The Qatar General Tax Authority confirmed that the agreement should eliminate the risk of double taxation, and help prevent tax evasion.

The agreement also seeks to facilitate and encourage investments and trade exchange, increase investment opportunities between the two countries, and provide investors with additional investment protection by increasing international standards of transparency through the exchange of financial information.

The agreement addresses numerous topics, including terms related to international maritime and air transportation, joint ventures, dividends, interest and royalties, all of which seek to strengthen economic relations between the two governments.

Included in the agreement is an exemption from tax on the profits resulting from the operation of ships or aircraft in international transport, and setting a ceiling for imposing tax on dividends not exceeding 5% of the total amount of dividends, if the beneficiary owns no less than 10% of the company’s distributed capital.