Tax Figures
Corporate Income Tax
An entity that is wholly or partially foreign owned by a non-Qatar company which derives income from sources in Qatar is subject to tax in Qatar. This applies to any foreign share of profits generated in a joint venture while in Qatar.
There is a flat Corporate Income Tax (CIT) of 10% for most cases, while no CIT applies to entities wholly owned by Qatari nationals and Gulf Cooperation Council (GCC) nationals. Companies operating in the oil and gas sector are subject to a 35% corporate tax rate
Income Tax Rate
Individual income tax is not imposed on any employee’s salaries, wages and allowances in Qatar. Self-employed individuals are taxed at the CIT rate.
Sales Tax
Qatar does not levy and sales taxes or VAT.
Withholding Tax
Qatar’s tax law requires all entities registered in Qatar with a permanent establishment to withhold a percentage of payments made to non-residents. The withholding tax rates are as follows:
- 5% of the gross amount of royalties and technical fees.
- 7% of the gross amount of interest, commissions, brokerage fees, director’s fees, attendance fees and payments for other services.
- No withholding tax on dividends.
Qatar has entered into double taxation treaties with over 50 countries, where withholding taxes on dividends, interest and royalties may differ.
Entities registered in the Qatar Financial Centre (QFC) are no required to withhold taxes.
Other Tax
- Custom duties – Customs duties applies to most goods originating outside of the GCC countries. The normal rate is levied at 5%, although some types of goods attract a higher rate such as tobacco, while some types may be subject to temporary import exemptions.
- Property taxes – There are no property taxes in Qatar.
Time to prepare and Pay Taxes
41 hours
Payroll
Qatar’s payroll and taxation system is unique in that many forms of standardized taxes are not applicable. Income taxes, social security taxes and sales taxes are not levied for individuals, while corporate income taxes are levied at a flat 10%. Proper care and attention to Qatar tax laws must be given to navigate the taxation system.
Remote Payroll
A remote payroll in Qatar is where a foreign company, i.e. a non-resident company, payrolls a resident employee in Qatar. This applies to both local and foreign employees. One option for a non-resident company to payroll its employees (local and foreign) in Qatar is to use a fully outsourced service like a GEO or PEO which will employ and payroll the staff on their behalf.
Local Payroll Administration
In some cases, a company will register their business in China under one of the forms available, (RO, WFOE or JV) but prefer to have another company administer its payroll. This can be accomplished through a payroll provider. It is important to note that the company, as the Employer of Record, is still fully responsible for compliance with employment, immigration, tax and payroll regulations. But the payroll calculations, payments and filings can all be outsourced to the payroll provider.
Internal Payroll
Larger companies with a commitment to Qatar may wish to run their own local payroll for all employees, foreign and local. In order to accomplish this, they will have to complete incorporation, register the business and then hire the necessary staff. There will be a need for in country human resources personnel who have the background needed to manage a Qatari payroll, and can fulfill all tax, withholding, and payroll requirements.
This approach carries significant cost and requires some knowledge of local employment and payroll regulations. The company will need a local accounting firm and potentially legal counsel to ensure full compliance with Qatari employment laws.
Currency
Qatari Riyal (QAR)
