Tax system in Qatar:
Personal Tax: Employees take home their wages and salaries without any tax deduction as there is no tax on personal income. However, if any individual has any types of comercial activities, then he has to pay the income tax according to the Companies Tax law.
Qatar is a tax free country for GCC National Residants who have stayed in for more than 183 days continuously and for Qataris.
The rate of tax is calculated annually and the company has to pay 10% of it’s annual state income and is fixed. And the typical business costs are negotiable.
An Individual involved in the “commercial activity” such as industry, trading has to pay 10% of his anual income to the government.
Calculation of Comany Tax:
A company has to pay the tax based on the income generated during previous tax year.
- Commercial Activity
- Contracts being executed.
- Properties and 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.
- Loans provided by the government on Income.
- 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.
Exemption of Tax:
It is applied to profits and revenues on Public Treasury Bonds, Development Bonds and Public Corporation Bonds, Qatri legal persons, agriculture, fisheries, aerial and maritime transportation, on condition of reciprocity.
Tax on Capital Gain:
Residents need not to pay tax on estate or gift.
Qatar is one of the low taxation countries in the world which attracts the expats and there are no other taxes in Qatar.