On 2 November 2015, the Philippine Bureau of Internal Revenue announced that the tax treaty with Qatar entered into force on 19 May 2015 and will come into effect on 1 January 2016.

Under the treaty, the term "permanent establishment" encompasses:

- A building site, a construction assembly or installation project or supervisory activities in connection with it, but only where the site, project or activities continue for more than 90 days.

- the furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for this purpose, but only where activities of that nature continue in the territory of the other contracting state for a period or periods aggregating more than 90 days in any twelve-month period.

Besides, dividends may be taxed in both contracting states, but the tax rate chargeable by the country of source will not exceed:

- 10% of the gross amount of the dividends if the beneficial owner is a company (excluding partnerships) which holds directly at least 10% of the capital of the paying company;

- 15% of the gross amount of the dividends in all other cases.

The term "dividends" means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the taxation law of the state of which the paying company is a resident.

With regards interests and royalties, the country of residence as well as the country of source are allowed to charge tax. However, the tax rate applicable by the country of source will not exceed:

- 10% of the gross amount of the interest.

- 15% of the gross amount of the royalties.

The term "interest" means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to these securities, bonds or debentures. Penalty charges for late payment will not be regarded as interest.

With regards to capital gains taxation, gains derived by a resident of a contracting state from the alienation of immovable property situated in the other contracting state may be taxed in that other state.

Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a contracting state has in the other contracting state or of movable property pertaining to a fixed base available to a resident of a contracting state in the other contracting state for the purpose of performing independent personal services, including gains from the alienation of the permanent establishment (alone or with the whole enterprise) or of fixed base, may be taxed in that other state.

Gains from the alienation of ships or aircraft operated in international traffic or gains from the alienation of movable property pertaining to the operation of the ships or aircraft may be taxed in the contracting state where the gain arises.

Gains from the alienation of shares of a company, the property of which consists principally of immovable property situated in a contracting state, may be taxed in that state. Gains from the alienation of an interest in a partnership or a trust, the property of which consists principally of immovable property situated in a contracting state, may be taxed in that state.

Gains from the alienation of any property, other than those mentioned above will be taxable only in the contracting state of which the alienator is a resident.

Finally, directors' fees and other similar payments derived by a resident of a contracting state in their capacity as a member of the board of directors of a company which is a resident of the other contracting state may be taxed in that other state.