Taxation

The Income Tax Law of Qatar was established in 1993, imposing income tax on profits from activities within Qatar, including contracts, asset sales, commissions, consulting fees, and intellectual property rights. Taxable income is determined after allowable deductions and tax is calculated on a progressive scale up to a maximum of 35% for income over 5 million Qatari Riyals. However, Qatar does not have personal income tax, value-added tax, sales tax, capital tax, or wealth tax. Corporation tax is imposed on foreign companies up to 35% and there is a 10% service tax and 5% government levy on restaurant and hotel bills.

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Taxation

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Taxation

The Income Tax Law of Qatar, Law No. 11/1993 became effective as of January 1, 1993.
It imposes income tax on the taxpayer (natural persons and corporate bodies) arising from
activities in Qatar, including profits from any contract executed in Qatar, profits realized
from the sale of any asset of an establishment, agency commissions, regardless of
whether the contract with respect to which a commission is due is executed inside or
outside of Qatar, consultation fees, amounts from the sale, rent or concession of
intellectual property rights, bad debts which are collected by the taxpayer and net profits
upon dissolution of a company.

Taxable income is determined after allowable deductions are made for interest payments,
rentals, salaries and bonuses, taxes and fees (other than income tax), depreciation, losses
from the sale of assets and humanitarian or scientific donations.

Revenues relating to projects in Qatar, even if executed outside of Qatar, are declared for
Qatari tax purposes. Evidence that the work was implemented outside of Qatar is
necessary to avoid tax liability with respect to the profits of the project.

Salaries, wages, personal bank interest and other forms of personal income are not
subject to tax.

Tax is calculated on a progressive scale rising to a maximum rate of 35 percent on

taxable income above QR 5 million. The tax rates are as follows:

Amount of Income Tax Rate

Less than QR 100,000 exempt
QR 100,001 to QR 500,000 10%
QR 500,001 to QR 1,000,000 15%
QR 1,000,001 to QR 20%
1,500,000
QR 1,500,001 to QR 25%
2,500,000
QR 2,500,001 to QR 30%
5,000,000
QR 5,000,001 and above 35%

Qatar has no system of personal income tax, no value-added or sales taxes and no capital or
wealth tax.

The only taxes payable are:

- Corporation Tax, applied mainly to foreign companies.
- Import duties on essential items, imposed at 4% of the value of most products.
- Service tax of 10% and government levy of 5% on restaurant and hotel bills.

Corporation tax is payable on a progressive scale on any income in excess of QR 100,001,

from 10% up to a maximum rate of 35% on income in excess of QR 5 million. There are a
number of allowable deductions including interest payments, salaries, rentals, depreciation
etc.

Self-employed foreign professionals working in Qatar are also taxed on their income.

Tax in Qatar
In Qatar there is no income tax. However, it is important to check if your country has
signed bilateral double taxation agreements with Qatar. If not, you will have to pay
income tax in your home country.

Note:
Profits of foreign companies based in Qatar can be taxed. Income from foreign origin can
also be taxed. You can find out more about taxation in Qatar on the Qatar Ministry of
Finance website at http://www.mof.gov.qa/. Contact the taxation services in your home
country to get additional information about taxation in Qatar.
There is no VAT in Qatar. Nevertheless, a VAT bill should be passed within 3 or 4 years.