Personal Income Taxation in Qatar
Qatar mainly follows a territorial tax system. Under this premise, individuals are supposed to pay taxes on income that has been earned in and sourced from within Qatar. This is irrespective of the tax residence of the given individual.
However, it must be noted that income tax is not specifically employed on individual’s salaries, wages, as well as other allowances. A self-employed individual might be subject to income tax in the cases where income is derived from sources within Qatar.
Corporate Income Taxation in Qatar
Under the CIT regime, business entities that are wholly or partially foreign owned, and have income sourced from within the periphery of Qatar are supposed to be taxed in Qatar. For joint-ventures, the extent of tax liability mainly depends on the share of profit attributable to the foreign entity.
However, no corporate income tax (CIT) is levied on business entities that are fully owned by Qatari nationals. This also holds true for GCC nationals, which are resident in Qatar for business purposes.
Corporate Income Tax Rate in Qatar
Corporate Income Tax is applicable in Qatar at a rate of 10%. However, there are certain exceptions that are also in place.
In addition to the taxes mentioned above, there are no taxes that are levied in Qatar or a local or a provincial level.
Other Taxation in Qatar
- Value Added Tax (VAT): To date, there has been no VAT incidence in Qatar, as a consumption tax. However, as per the mutual agreement within GCC countries, VAT is expected to be levied in the near future at a rate of 5%.
- Custom Duties: Custom Duties are levied on all goods and services that are imported in Qatar, from countries outside of GCC. However, there are different custom rates applicable across different types of goods and services, including tobacco related products.
- Excise Taxation: Excise Taxation is levied on a certain category of goods and services, at respective tax rates. These tax rates are as follows:
- For tobacco products: Excise Taxes are levied at a rate of 100%.
- For carbonated drinks (non-flavored water): Excise taxes are levied at a rate of 50%.
- For energy drinks: Excise Taxes are levied at a rate of 100%.
- For special purpose goods: Excise Taxes are levied at a rate of 100%.
- Property Taxes: There are no property taxes levied in Qatar. However, in the case of registration of a rental agreement, or property registration, fees might be payable to the government.
- Transfer Taxes: There are no transfer taxes levied in Qatar.
- Stamp Taxes: There are no stamp taxes levied in Qatar.
- Payroll Taxes: There are no payroll taxes levied in Qatar.