Tax in GCC
- Overview of tax in GCC
- Taxes in UAE
- Taxes in Saudi Arabia
- Taxes in Qatar
- Taxes in Oman
- Taxes in Kuwait
- Taxes in Bahrain
Taxes in Qatar
Excise tax applies in Qatar from 1 January 2019 and is imposed both on imports and locally produced goods. Rates are 100% on tobacco products, energy drinks and 50% on carbonated drinks.
Currently Qatar does not impose VAT in its territory. However, VAT is expected to be implemented by 2021, since Qatar is part of the GCC VAT framework.
Employees’ salaries, wages, and allowances are not subject to income tax. Only business income is taxable in Qatar.
A self-employed individual may be subject to income tax if one derives qualifying income from sources in Qatar, regardless of his/her tax residency.
The Corporate Tax Rate in Qatar stands at 10 %.
Other Corporate Taxes
Employers must pay social insurance in respect of Qatari employees (10% of basic salary) but have no obligations for foreign employees.
Double Taxation Treaties
Qatar has a total of 70 tax avoidance agreements in force with other jurisdictions. Of these, 54 have come into force in the last 15 years.
Qatar has Double Tax Treaties (DTTs) in force with various countries, such as Albania, Algeria, Armenia, Austria, Azerbaijan, Barbados, Belarus, Belgium, Bermuda, Bosnia and Herzegovina, Brunei, Bulgaria, Chad, China, Croatia, Cuba, Cyprus, Ecuador, Eritrea, Ethiopia, Fiji, France, Gambia, Georgia, Greece, Guernsey, Hong Kong, Hungary, India, Indonesia, Iran, Ireland, Isle of Man, Italy, Japan, Jersey, Jordan, Kazakhstan, Kenya, Korea, Kyrgyztan, Latvia, Lebanon, Luxembourg, Macedonia, Malaysia, Malta, Mauritania, Mauritius, Mexico, Monaco, Morocco, Nepal, Netherlands, Nigeria, Norway, Pakistan, Panama, Paraguay, Philippines, Poland, Portugal, Romania, Russia, San Marino, Senegal, Serbia, Seychelles, Singapore, Slovenia, South Africa, Spain, Sri Lanka, Sudan, Switzerland, Syria, Tunisia, Turkey, United Kingdom, Venezuela, Vietnam and Yemen.
In addition, Qatar has tax information exchange agreements with the Cayman Islands, Denmark, the Faroe Islands, Finland, Greenland, Iceland and Sweden.
Capital Gains Tax
Capital gains are aggregated with other income and are subject to tax at the regular corporate income tax rate.
Property Transfer Tax
There are no property or transfer taxes in Qatar.
Certain fees may be payable to the government by the owner on the registration of property and by the landlord on the registration of leases.
There is no inheritance tax.
Rental income earned by nonresident individuals is taxed at a flat rate of 10%.
There is no stamp duty.
Qatar imposes a 5% ad valorem tariff on the cost, insurance and freight (CIF.) invoice value of most imported products, including food products.
Customs duties of 30 % are levied on imports of urea and 15 % on imports of records and musical instruments. – Pork and pork products are illegal under Qatari law. – Tobacco products and alcoholic beverages are subject to a 100 % import duty.
It’s tax-free shopping in Doha although most hotels and restaurants do charge a service fee of about 15%.
The withholding tax rate is 5% on Royalties, Technical fees, Interest, Commissions, attendance fees and other services.
Withholding Tax Return must be submitted to tax authorities by the 15th of the month following the month in which actual payment for services is made.