Tax System in Qatar
People working in Qatar enjoy tax-free salaries. Income Tax is levied on all foreign businesses operating in Qatar, whether the business is considered a natural person or a legal entity.
Business activity is defined as any profession, vocation, service, trade, industry, speculation, contractual work or any business carried on for the purpose of making a profit or income, including the exploitation of moveable or immoveable property, such as real estate.
The corporate tax rate for foreign-owned companies, as of January 1, 2010, is a flat rate of 10 per cent, which replaces a previous progressive rate. The flat rate applies to business revenues only, not those of individuals.
Normal business expenses are deductible.Losses may be carried forward to a maximum of three years.
Individuals – either natural persons or corporate entities – are taxed on the taxable income derived from the State during the previous taxation year.
Income from the State includes gross income from:
- An activity carried on in the State.
- Contracts performed in the State.
- Real estate in the State, including the sale of shares from companies or partnerships whose primary assets are real estate.
- Services paid to head offices, branches or related companies.
- Interest on loans obtained in the State.
Income from natural resources and gross income are subject to tax under a double taxation agreement.
Rental incomes and capital gains from business activity are taxed at the 10 percent flat rate.
Capital gains not related to businesses are exempt.
Tax exemptions also exist for:
- Interest and returns on public treasury bonds, development bonds and public corporation bonds.
- Dividends and other income from shares.
- Small (three employees or less) handcraft businesses
- Income from agriculture and fishing and air and sea transport companies
- Qatari natural persons in the State
For further details please contact
The Contact Center can be reached via telephone at 109 (inside Qatar), 44069999 or by fax at 44069998 or live chat. The e-mail address is email@example.com.
»» (Publication Government of Qatar, On: 01/01/2012 We are not responsible for any amendment to this data )