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Qatar Tax System

Updated: Apr 2

Personal Tax

Personal money is not taxed. This indicates that no taxes are withheld from the wages and salaries that workers receive. However, under the Companies Tax law, anyone who engages in any kind of commercial action with the intent of making money is required to pay taxes according to tax law.

Nationals of Qatar and the GCC who live in Qatar are not required to pay taxes on their entire income. Anyone who possesses a permanent residence in the State of Qatar, stays there for more than 183 days each month, whether continuously or intermittently, or whose vital interests are connected to Qatar is considered a resident

Corporate Tax

10% of a company's total state income is the tax amount, which is paid yearly. Only businesses are subject to this fixed rate; individual earnings are not. (see Personal Tax above). Normal business costs are deductible, and losses may be carried forward for up to three years after the initial accounting statement.

Any profession, vocation, service, industry, trade, speculation, contractual labor, or any profit-and-income-generating business is considered a commercial activity. Additionally, a fixed tax rate of 10% is applied to rental revenue.

How is the company tax determined?

An organisation (or person) is required to pay tax on revenue that was produced during the prior tax year from sources in the State.

Total State Income Includes:-

  • Operating any type of commercial operation within the State

  • Contracts that are fully or partly carried out within the State

  • Real estate assets located within the State, including revenue from the sale of stocks, business shares, and private companies that do so.

  • The primary business, its branches, and other affiliated companies' services

  • Profits from State-provided financing.

Value Added Tax

More than 100 necessities that have an impact on capital have been exempted by Qatar. This tax prioritizes luxury products and is levied at the lowest rates possible globally, keeping Qatar competitive in luring foreign investment. The initial VAT rate will probably be 5%, with potential future increases.

Excise Tax

A consumption tax referred to as excise tax is levied on particular products that the State of Qatar considers to be hazardous to human health and the environment.

The items listed below are liable to excise tax at the appropriate rates:

  1. The tax rate on tobacco goods is 100%.

  2. Carbonated beverages (non-flavoured aerated water excluded) - Tax rate of 50%

  3. Tax on energy beverages is 100%

  4. Products with a specific use, such as alcohol: 100%

  5. Tobacco-related goods (At 100%) levy

Tax exemptions

The following are exempt from taxes:

  • Individuals who do not engage in taxable action within the State.

  • Interest and returns on bonds issued by public entities and companies, Islamic financial securities, and public debt securities.

  • Dividends and other share-related revenue that complies with the requirements of Law No. 24 of 2018 on Tax revenue.

  • Little handicraft shops (three employees or less).

  • The gross revenue of businesses engaged in agribusiness and fishing.

  • The gross revenue of non-Qatari air or sea navigation firms that operate in the State under reciprocal agreements.

  • Qatari legal persons residing in the state.

Other Taxes

There are no longer any taxes because Qatar is one of many nations with low taxes, which attracts expats. (individuals and companies).

Double Taxation Agreement

There are various tax rules in different countries. You might be required to pay tax on the same income in two different nations if you have assets, liabilities, or income in one country and reside in another.The State of Qatar has double taxation avoidance agreements in place with more than 70 nations worldwide in order to prevent double taxes

List of countries with which Qatar has signed the Double Taxation Agreements:

Albania, Algeria, Armenia, Austria, Azerbaijan, Barbados, Belarus, Bosnia and Herzegovina, Brunei, Bulgaria, Chad, Croatia, Cuba, Cyprus, Ecuador, France, Georgia, Greece (Hellenic ), Guernsey, Hong Kong, Hungary, India, Indonesia, Morocco, Iran, Ireland, Isle of man, Italy, Japan, Jersey, Jordan, Kazakhstan, Kenya, Kyrgyz republic, Latvia, Lebanon, Luxembourg, Macedonia, Malaysia, Malta, Mauritius, Mexico, Monaco, Nepal, Netherlands, Norway, Pakistan, Panama, Philippines, Poland, Portugal, Romania, Russia, San Marino, Senegal, Serbia, Seychelles, Singapore, Slovenia, South Africa, South Korea, Spain, Sri Lanka, Sudan, Switzerland, Syrian Arab Republic, The People’s Republic China, Tunisia, Turkey, United Kingdom, Venezuela, Vietnam.