GSL / International Taxation / Qatar

Qatar

Service packages Legislation Tax System Audit Services

Taxes of Qatar

10%
Сorporate tax
10%
Capital gains tax
No
VAT
0% (dividend), 5% (interest), 5% (royalty)
Withholding tax
No
Exchange control

info
Basic taxes (briefly)

Personal tax
No
Corporate tax (in detail)
Standard corporate income tax rate is 10%
Capital gains tax. Details
Capital gains tax rate is 10%
VAT. Details
Qatar has made a number of declarations about introduction of VAT, but the date of it coming into force has not been announced yet
Other taxes
Social insurance contributions, excise tax, customs duties
Government fee
-
Stamp duty
No

Personal income tax

Salary and allowances of working individuals are not subject to personal income tax in Qatar.

Contributions to the Social Insurance Fund

Due to the small population of Qatar and high GDP individuals are not required to pay any social security taxes. However, employers must pay social insurance for Qatari workers.

Corporate income tax

Currently, corporate income tax is not imposed on legal entities fully owned by citizens of Qatar or citizens of countries of the Persian Gulf residing in Qatar.

An enterprise that is fully or partially in foreign ownership and receives income from sources in Qatar is subject to taxation in Qatar.

If an enterprise is not specifically exempted from paying tax, it will be taxed in Qatar if it has received income from a source in Qatar irrespective of the place of its incorporation.

Taxable income is usually taxed at a fixed rate of 10%, with a few exceptions.

VAT

Currently, Qatar does not impose VAT or sales tax on transactions in Qatar.

VAT, however, is expected to be introduced in Qatar as part of the general GCC structure in the near future. The tax rate is supposed to be 5%.

Real estate tax

There is no real estate tax in Qatar. However, fees may be paid to the Government by the owner when registering property and the lessor then registering lease contracts.

Capital gains tax

Any taxable profit from the sale of fixed assets is taxed like ordinary income. Special rules exist in relation to profit from the sale of real estate.

Withholding tax

A flat 5% withholding tax rate applies to all services that are used or benefit in the State of Qatar even if they are fully or partially provided outside the state.

A withholding tax also applies, among other things, to interests, license fees, engineering fees, commission fees, broker’s fees and other service fees.

Dividends are not subject to a withholding tax.

Dividend tax

Dividends are not taxed in Qatar if they are received from profit taxed in Qatar or from companies exempt from tax in Qatar.

However, any dividend received by a Qatari legal entity from a foreign legal entity not connected with the permanent establishment of the Qatari legal entity is subject to taxation in the State of Qatar.

Interest income tax

Interests arising in Qatar and bank interests realized outside Qatar, if they are a result of activity of a taxpayer in Qatar, are taxed like ordinary income.

In addition, any interest received by a Qatari legal entity from a foreign legal entity not connected with the permanent establishment of the Qatari legal entity is subject to taxation in the State of Qatar.

CFC rules

There are no CFC rules in Qatar.

Transfer pricing

Historically, related party transactions were supposed to be made on market conditions and in accordance with the comparable uncontrolled price (CUP) method or any other pricing method acceptable to the OECD.

However, there are no specific requirements regarding filing documents on transfer pricing.

International tax agreements

Qatar has entered into 70 double tax conventions (DTCs) with the following jurisdictions:

70 DTCs: Austria, Azerbaijan, Algeria, Armenia, Barbados, Belarus, Bulgaria, Brunei, Great Britain, Hungary, Venezuela, Vietnam, Guernsey, Hong Kong, Greece, Georgia, Jersey, India, Indonesia, Jordan, Iran, Ireland, Spain, Italy, Yemen, Kazakhstan, Kenya, Cyprus, China, Cuba, Kyrgyzstan, Latvia, Lebanon, Luxembourg, Mauritius, Malaysia, Malta, Morocco, Mexico, Monaco, Nepal, Nigeria, the Netherlands, Norway, Oman, the Isle of Man, Pakistan, Panama, Poland, Portugal, Russia, Romania, Seychelles, Senegal, Serbia, Singapore, Syria, Slovenia, Sudan, Tunisia, Turkey, the Philippines, France, Croatia, Switzerland, Sri Lanka, Ecuador, South Africa, South Korea, Japan.

In addition, Qatar has signed and ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The multilateral convention came into force for Qatar on 1 April 2020.

Foreign exchange controls

There are no foreign exchange controls in Qatar.

Compare Jurisdictions
    Your Consultant
    Поиск консультанта...

    Поиск консультанта...

    Need a consultation from a specialist?
    Share on social media:
    RU EN