An entity that is wholly or partially foreign owned and that derives income from sources in Qatar is taxable in Qatar. In the case of a joint venture, the tax liability of the joint venture is dependent upon the foreign partners’ share of the joint venture's profit. Currently, no corporate income tax (CIT) is levied on a corporate entity that is wholly owned by Qatari nationals and GCC nationals that are resident in Qatar.
Unless specifically exempt from tax, an entity will be taxable in Qatar if it has generated Qatar-source income, regardless of the place of its incorporation.
Taxable income generally is subject to a flat (CIT) rate of 10%, with certain exceptions available.
The following tax rates apply in the specific circ*mstances noted:
- If a special agreement was reached with the government of Qatar prior to 1 January 2010, the rate specified in the agreement continues to apply. If no rate is specified in the agreement, a rate of 35% will be used.
- The rate applied with respect to oil operations, as defined in Law No. 3 of 2007, may not be less than 35%.
- Payments made to non-residents with respect to certain service activities not connected with aPE in Qatar are subject to WHTs(see the Withholding taxes section).
- In addition to the above, fully owned subsidiaries of listed entities are now taxable to the extent of non-exempt ownership (i.e. foreign or non-exempt Qatari /GCC ownership). Previously, there was a perception amongst taxpayers that such subsidiaries were tax exempt.
Local income taxes
There are no local, state, or provincial government taxes on income in Qatar.
FAQs
Unless specifically exempt from tax, an entity will be taxable in Qatar if it has generated Qatar-source income, regardless of the place of its incorporation. Taxable income generally is subject to a flat (CIT) rate of 10%, with certain exceptions available.
What is the WHT rule in Qatar? ›
A unified 5% WHT applies to all services that are used, utilised, or benefited in the State of Qatar even if they are carried out in whole or part outside the State. WHT also applies to, among others, interest, royalties, technical fees, commissions, brokerage fees, and other payments for services.
What is the corporate tax in free zone Qatar? ›
0% corporate tax - renewable for 20 years (tax holidays) Full capital repatriation. Zero customs duties on imports. No personal income tax.
What is the income tax law 24 in Qatar? ›
Under the provisions of Law No. 24 of 2018 and it's amendment promulgating the Income Tax Law, the applicable tax rate for the tax year shall amount to 10% of the taxpayer's taxable income. Income Tax in Qatar is imposed based on the income source, with a few specific exemptions.
How does Qatar have no income tax? ›
Qatar operates a territorial taxation system, which means an individual is taxable in Qatar if one has generated qualifying Qatar-source income, regardless of one's tax residence. Income tax is not imposed on employed individuals' salaries, wages, and allowances.
What is the highest taxed country in the world? ›
1. Ivory Coast. The country with beach resorts, rainforests, and a French-colonial legacy levies a massive 60% personal income tax – the highest in the world.
Is swearing illegal in Qatar? ›
Swearing is considered an obscene act and is therefore punishable by law. It can be aggravated if directed towards police officers. Potential punishments include a fine, short jail sentence, or deportation.
What is the tax rate on salary in Qatar? ›
The Personal Income Tax Rate in Qatar stands at 0 percent. Personal Income Tax Rate in Qatar averaged 0.00 percent from 2004 until 2023, reaching an all time high of 0.00 percent in 2005 and a record low of 0.00 percent in 2005.
Is cursing illegal in Qatar? ›
Flashing the middle finger or swearing, particularly when dealing with police or other authorities, can lead to arrest. Most criminal cases in Qatar that entrap unwary foreigners involve such offenses.
How much does it cost to register a company in Qatar? ›
The cost to register a company in Qatar can vary depending on the type of business, but generally the fees for registering a new company with the Ministry of Commerce and Industry range from QR 10,000 to QR 20,000.
Qatar freezone company formation cost completely depends on the jurisdiction in which you choose to incorporate your business and the type of activity in which you wish to be involved. In general, the cost is approximately QAR 17000; it might vary depending on the nature of the business.
What is the tax exemption in Qatar free zone? ›
The Port Free Zone focuses on maritime industries, heavy manufacturing, industrial sectors, emerging technologies, and logistics hubs. Benefits of setting up in one of the Free Zones include 100% foreign ownership and a 20-year tax holiday (i.e. zero corporate tax, zero customs duties, and no personal income tax).
What is Article 1 of the income tax law Qatar? ›
1- Every taxpayer who carries on an activity or derives a taxable income shall register with the Department within thirty 30 days from the date of obtaining the approval from the competent authority to commence the activity or the first day of realization of the income, whichever is earlier,or from the date of entry ...
What is the Pillar 2 tax in Qatar? ›
Its primary goal is to ensure a minimum effective jurisdiction tax of 15%, discouraging tax competition and introducing an independent Subject To Tax Rule (STTR) for a 9% minimum tax on specific treaty-based payments.
What is the penalty for taxes in Qatar? ›
The penalty imposed for late tax payment is 2% (increased from 1.5% effective from 13 December 2018) of the tax due per month or part of a month until paid. The maximum is 100% of the tax due. For QFC companies, the penalty imposed for late tax payments is 5% per year on unpaid tax.
What country has the lowest corporate income tax? ›
Is there corporate income tax in UAE? ›
Yes. The UAE Corporate Tax is a federal tax and will therefore apply across all the Emirates. 8. Will I have to pay UAE Corporate Tax alongside Emirate level taxes?
Does Dubai have corporate income tax? ›
Barring Bahrain, the UAE has introduced the lowest corporate income tax rate within the GCC region at a standard rate of 9%. The UAE CT regime has been designed to incorporate best practices globally and minimize the compliance burden on businesses.
