Taxation in Qatar

Updated on Tuesday 03rd March 2020

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Qatar is extremely appealing from a tax point of view to numerous international investors who want to expand their portfolios and businesses in this part of Asia. Having a corporate income tax established at a flat rate of 10% weights a lot to businessmen interested in low taxes or exemptions of any kind. Those interested in the tax structure in Qatar can address their inquiries to one of our company formation specialists in Qatar and solicit complete information. Our agents can also help foreigners open companies in Qatar.

What is the corporate tax rate in Qatar?

As mentioned earlier, the corporate income tax in Qatar is set at a 10% rate and it applies to foreign companies with profits registered in this country. Here are some important facts you should know about the corporate tax in Qatar:
  1. Companies incorporated in Qatar or resident enterprises in this country are subject to the corporate income tax.
  2. Wholly or partially foreign-owned companies with incomes in Qatar must pay the corporate tax.
  3. The capital gains are subject to the corporate income tax in Qatar.
  4. The corporate income tax of 35% applies to companies with petrochemical activities in Qatar.
The low corporate income tax imposed in Qatar allows domestic and foreign investors to concentrate more on varied investment opportunities in their companies. If you would like to know more about the corporate tax, you can talk to one of our company formation agents in Qatar. They can also help you open a company in Qatar.

Taxes for natural persons in Qatar

The wages, salaries, and incomes of employees in Qatar are not subject to taxation. This is definitely a huge advantage for foreign and local workers in Qatar. As for the employers in Qatar, these must pay the social insurance of a 10% rate of the basic salary, according to the Tax Law. 

How are the taxes imposed on companies calculated in Qatar?

The taxation of company incomes is normally made for the previous year. All the revenues of a company with establishments in Qatar are subject to taxation, regardless of the source, whether from the sale of stocks, company shares, or varied commercial activities. It is good to know that foreign companies are protected by the provisions of the double taxation agreements signed by Qatar with numerous countries, to avoid the fiscal evasion and the taxation on incomes twice. If you would like to know if your country of origin signed a double taxation treaty with Qatar, you can talk to one of our specialists. In matters of tax compliance and registration, you may address to one of our accountants in Qatar.

Is there any VAT in Qatar?

The long-debated VAT issue in Qatar is still in the attention of the Ministry of Finance in Qatar, even if this tax was announced in 2018. A VAT rate of 5% is about to be introduced in the tax system of this country, for companies exceeding the VAT threshold or QAR 364,000. In matters of VAT exemptions, the real estate sector, the financial services, and the imports will not be subject to such tax, or at least for the moment. We mention that the VAT is not yet imposed in Qatar, even if the financial authorities of this country announced this important fiscal measure to be introduced in 2020.

The withholding tax in Qatar

The withholding tax of 5% applies to incomes generated from royalties, and interests. It is good to know that dividends in Qatar are not subject to withholding tax.

Other tax facts in Qatar

The excise tax of a 5% rate has been introduced in Qatar in January 2019 and it applies to specific luxury goods and tobacco products for sale. All the requirements involving tax registration in Qatar can be handled by our team of specialists.

Tax registration in Qatar

The tax registration for companies in Qatar is a simplified process that can be overseen by one of our specialists. In matters of documents, the Articles of Association and the Certificate of Incorporation of the company are necessary for tax registration in Qatar. Specific forms might be needed for submission, as part of the formalities imposed by the financial institutions in charge.
Those interested in making investments in Qatar might find useful the following information about the business and economy of this country:
  • the 2019 Doing Business report issued by the World Bank ranks Qatar 83rd out of 190 economies in the world;
  • approximately USD 32,743 million was the total FDI stock registered in Qatar in 2018;
  • since 2019, foreign investors in Qatar are allowed to have 100% ownership in the firm;
  • the USA, Singapore, South Korea, and Japan are among the main investors of Qatar.
If you would like to know more about taxation in Qatar, feel free to contact our team of company formation agents in Qatar.