The tax regime was originally announced in 2006 and replaces the temporary tax holiday which expired on 31 December 2009.

Under the new regime with effect from 1 January 2010, all QFC registered companies are subject to 10% corporation tax to be charged on locally sourced profits.

This compares favourably with many other financial centres which often have higher rates of tax or have other charges/ fees and taxes on turnover rather than profits, the QFC Authority Director of Finance and Tax told a news conference yesterday.

The QFC is leading the expansion of Qatar's financial services sector, providing a uniquely sustainable platform for regional growth in reinsurance, captives and asset management and as such there are tax incentives in these three key strategic areas, Anderson said.

Besides, there are specific rules for Islamic finance transactions to ensure equality of tax treatment with conventional finance transactions.