Tax rates in Qatar

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.

Tax Rate

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.