QatarLegislations
Decree-Law No. 16 of 1997 Exempting Qatar Fuel Additives Company Limited (QAFAC), a Qatari Shareholding Company (Q.S.C), from Income Tax, Fees and Other Taxes 16 / 1997
Number of Articles: 8
Table of Content



We, Hamad Bin Khalifa Al-Thani, Emir of the State of Qatar,
Having perused the Amended Provisional Constitution, in particular Articles 23, 27 and 34 thereof;
Law No. 5 of 1988 promulgating the Customs Law, and the amending laws thereof;
Decree-Law No. 22 of 1993 organising the Ministry of Finance, Economy and Commerce, and assigning the competencies thereof;
Law No. 19 of 1995 on the organisation of industry;
Decree No. 20 of 1991 establishing Qatar Fuel Additives Company Limited (Q.S.C);
The Joint Venture Agreement signed on 24 June 1990, as amended on 9 June 1996;
The proposal of the Minister of Finance, Economy and Commerce; and


Articles

Article 1


In the application of the provisions of this Law, the following expressions shall have the meanings assigned to each, unless the context requires otherwise:
“QAFAC Company” means Qatar Fuel Additives Company Limited (QAFAC), a Qatari Shareholding Company;
“Foreign partners” means the non-Qatari partners in QAFAC Company, namely International Octane Limited, China Petroleum Corporation, Chinese LCY Investment Corporation, and others that may take their place or join them;
“Joint Venture” means the joint venture between Qatar General Petroleum Corporation and its partners to produce, export and market methanol and methyl (MTBE) substances;
“Agreement of Joint Venture” means the agreement concluded between Qatar General Petroleum Corporation and its partners on 24 June 1990, as amended on 09 June 1996, to establish and operate the said joint venture.


 

Article 2


QAFAC Company (hereinafter “the Company”) shall be exempted from income tax. The period of exemption shall be ten Gregorian years, starting from the issuance date of a bill of lading or a batch of the Company’s production.


 

Article 3


The Company shall be committed to pay income tax according to the tax laws in force in the State of Qatar at the rate of thirty-five (35) percent of the net profits of the Joint Venture earned after the expiration of the exemption period stated in the previous Article.


 

Article 4


 
Notwithstanding the provisions of the two preceding Articles, the dividends of the foreign partners and the revenue earned by QAFAC Company shall be exempted from income tax and tax withheld at source. Such exemption shall be continued during the period of validation of the Joint Venture Agreement.


 

Article 5


The contractors and suppliers of the Joint Venture and their employees who are contracted with QAFAC Company or its foreign partners shall be exempted from income tax and all other taxes during the period of establishment of the Joint Venture and starting tests.


 

Article 6


The repayment of debts to lenders and financiers of the Joint Venture by shareholders or others shall be exempted from income tax, tax withheld at source and other taxes applicable in Qatar. Such exemption shall be continued during the period of validation of the Joint Venture Agreement.


 

Article 7


 
Goods, materials, supplies and equipment necessary for the Joint Venture shall be exempted from all import and export fees and other government fees during the period of validation of the Joint Venture Agreement. Such exemption shall not include fees and charges applicable in the ports of the State of Qatar.


 

Article 8


All competent authorities, each within its jurisdiction, shall enforce this Law which shall come into force from the date of its publication in the Official Gazette.


 


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