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Qatar’s Tax System

Qatar’s Tax System

Personal Tax :

There is no tax on personal per capita income. This means that employees take home their
wages and salaries without any tax deducted. Full information on personal income taxation
can be found here.

However, an individual who exercises any type of commercial activity with the intention of
gaining income is required to pay tax according to the Companies Tax law (see Company
Taxation below).

The total income of Qatari and GCC nationals resident in Qatar is exempted from paying tax.
Resident is defined as anyone who owns a permanent accommodation in the State of Qatar,
or stayed in for more than 183 days continuously or intermittently during (12) months, or his
vital interests are linked to Qatar.

Company Taxation

The rate of tax is 10% of a company’s Total State Income, paid annually. This fixed rate is only
applicable on businesses and not on individuals’ incomes (see Personal Tax above). Typical
business costs are deductible and losses can be rolled over for a period no longer than 3
years from the original accounting declaration.

“Commercial Activity” means any profession, vocation, service, trade, industry, speculation,
contractual work or any profit & income making business. Rental income is subject also to
a fixed tax rate of 10 %.

More in-depth information on company taxation law can be found here.

How is Company Tax calculated ?

A company (or individual) is required to pay tax on income that has been generated in from sources
in the State during the previous tax year. This Total State Income includes:

• Operating any commercial activity within the State.

• Contracts being executed totally or partially within the State

• Properties in the State; including income from selling stocks, company shares, and individual
companies that own real estate assets within State.

• Services provided by the main company, branches and other related firms

• Income on loans provided by the State.
Total State Income, which results through the exploiting, exploration or production of the State’s
natural resources, may be subject to additional taxation under the Double Tax Agreement signed
in the Country of registered origin of the company. Qatar has favourable Double Taxation
Agreements with over 40 countries. (Check whether your country has an agreement in place.)

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