Qatar Ratifies Tax Treaty with UAE, Strengthening Cross-Border Tax Certainty

Qatar, 19 August, 2026: Qatar has ratified its Double Taxation Agreement (DTA) with the United Arab Emirates through Emiri Decree No. (39) of 2026, published in the Official Gazette on 25 June 2026.

The agreement, originally signed in May 2024 and ratified by the UAE in April 2025, will enter into force once both countries exchange their instruments of ratification through diplomatic channels.

The treaty introduces a more favourable withholding tax framework, including no withholding tax on qualifying interest payments and a reduced 3% rate on royalties and technical service fees, subject to applicable residence, beneficial ownership and anti-abuse conditions.

It also provides specific tax treatment for qualifying government investments and establishes a more favourable threshold for service permanent establishments. A service PE would generally arise when services are provided for more than 270 days within a 12-month period, compared with 183 days under Qatar’s domestic rules.

The agreement may also provide tax relief for capital gains on the disposal of Qatari company shares by UAE residents, although special rules may apply where the shares derive significant value from immovable property in Qatar.

Businesses and investors operating between Qatar and the UAE should review their structures, cross-border payments and investment arrangements to assess the potential benefits and compliance requirements under the new treaty.