Qatar flag Qatar: Business Environment

Tax rates in Qatar

Tax Rates

Consumption Taxes

Nature of the Tax
Currently, Qatar imposes no VAT or sales tax on operations in its territory. However, VAT is expected to be implemented by 2023, since Qatar is part of the GCC VAT framework.
Tax Rate
N/A at the moment. The standard rate of VAT in Qatar and the GCC should be 5%.
Reduced Tax Rate
N/A at the moment.
Other Consumption Taxes
Excise tax applies in Qatar from 1 January 2019 and is imposed both on imports and locally produced goods. Rates are 100% on tobacco products, energy drinks and “special purpose” goods and 50% on carbonated drinks.

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Corporate Taxes

Company Tax
10%
Tax Rate For Foreign Companies
An entity that is wholly or partially foreign-owned and that derives income from sources in Qatar is taxable in Qatar, regardless of the place of its incorporation.
A company is resident in Qatar if it is incorporated in accordance with Qatari laws, its head office or its place of effective management and control is situated in the country (residency is used to determine whether withholding taxes will apply on payments, but not for corporate income tax purposes).
Capital Gains Taxation
Capital gains are aggregated with other income and are subject to tax at the regular corporate income tax rate.
Main Allowable Deductions and Tax Credits
Expenses occurred to generate income are generally deductible, provided they are not capital in nature.
Other deductible expenditures include: employee costs (including salaries, wages, gratuities, and other ends of service benefits), losses resulting from the sale of assets, rents, insurance premiums. Bad debts are deductible subject to approval of the General Tax Authority. Interests on loans are deductible (subject to conditions). Entertainment expenses are deductible up to 2% of net income or QAR 500,000, whichever is lower.
Certain charitable contributions are deductible, up to 3% of the net profit in the year in which the deduction is claimed.
Payments to foreign head offices are deductible up to 3% of the total revenue less certain other costs (1% for banks and insurance companies).
Losses may be deducted from the net income during the year. Losses can be carried forward for five years after the year in which they were incurred, but cannot be carried back.
Other Corporate Taxes
Employers have to pay social insurance in respect of Qatari employees (10% of the basic salary) but have no obligations for foreign employees.
Employees' salaries, wages, and allowances are not subject to income tax.
Although no property or transfer taxes are levied in Qatar, fees may be payable to the government by the owner on the registration of property and by the landlord on the registration of leases.
Other Domestic Resources
General Tax Authority (GTA)
Consult Doing Business website (World Bank), to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Qatar Middle East & North Africa United States Germany
Number of Payments of Taxes per Year 4.0 20.8 10.6 9.0
Time Taken For Administrative Formalities (Hours) 41.0 204.0 175.0 218.0
Total Share of Taxes (% of Profit) 11.3 32.1 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Employees Income tax is not imposed on employed individuals' salaries, wages, and allowances. Only business income is taxable in Qatar.
Self-employed A self-employed individual may be subject to income tax if one derives qualifying income from sources in Qatar, regardless of his/her tax residency.
Allowable Deductions and Tax Credits
N/A
Special Expatriate Tax Regime
Individuals are taxable in Qatar on their qualifying Qatar-source income, regardless of their tax residence.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
List of Tax Conventions signed by Qatar
Withholding Taxes
Dividends: 0; Interest: 0 (residents)/5% (non-residents); Royalties: 0 (residents)/5% (non-residents)
The rates may be further reduced under a tax treaty.
Bilateral Agreement
The United Kingdom and Qatar are bound by a double taxation treaty.

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Latest Update: November 2022

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