Main taxes and fees in Qatar

Qatar's tax system is designed to attract foreign investment, but it also maintains strict rules for companies operating in natural resources. Qatar's CIT has an unusual structure that deserves a closer look.

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Taxation under CIT depends on two factors:

• Nationality of business owners (Qatari citizens or foreigners).
• The company's field of activity (oil and gas sector or other industries).

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Who pays and at what rates

• General tax rate for companies (e.g. trade, IT, other services): 10% of profit.
• Companies with foreign participation operating in the oil and gas industry, as well as those engaged in the development and extraction of natural resources: are taxed at a rate of 35% of profit.
• Foreign companies are required to pay CIT. Companies operating remotely or through intermediaries are also subject to income tax.

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For example, if a foreign IT company opens a representative office in Doha and earns domestic income, it pays CIT at a rate of 10%. But if the same company provides services to clients in Qatar without a physical presence, no tax is levied.

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General income tax - 10%

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Tax base

Income received from sources in Qatar is taxable, as well as income received from certain sources outside Qatar, such as:

• from real estate
• in the form of royalties
• from interest
• from the payment for technical maintenance

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Income is subject to corporate tax as long as such income is not attributable to a permanent establishment of a foreign person in Qatar:

• from granting rights to distribute goods and services
• from payments for marketing services
• from payments for intermediary services
• from payments for obtaining guarantees or other financial support
• from payments for the provision of broadcasting or communication services 

Tax period

It coincides with the company's financial year. However, as a rule, companies in Qatar have the right to independently set the end date of the financial year (for example, December 31, March 31, or any other month). The tax period corresponds to this period.

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From 2025, Qatar will introduce a global minimum tax on profits of 15% for multinational corporations (Domestic Minimum Top-up Tax, DMTT) with revenues of more than QAR 3 billion (~ EUR 780 million) per year, introduced as part of the OECD's global tax reform Pillar Two (BEPS 2.0).

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“The global minimum tax is a new international standard developed by the OECD as part of the BEPS 2.0 (Base Erosion and Profit Shifting) project. The main goal of the initiative is to set a lower threshold for the corporate tax rate for large transnational companies to prevent them from using offshore jurisdictions with low or zero tax rates” Ilya Vydrych, Development Manager бизнеса

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‍Registration as a CIT payer‍

The company must register for income tax within two months of registration. Failure to register will result in a fine of QAR 20,000.

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Who is exempt from paying CIT?

• Companies owned by Qatari citizens, excluding companies in the oil and gas sector.
• Companies registered in some of Qatar's free zones are completely exempt from CIT for up to 20 years.

Withholding tax is a mandatory withholding of a portion of the payment in favor of the state when paying to non-residents.

Who pays?

• Residents: Tax is withheld on payments to non-residents by Qatari resident companies.
• Companies registered in Qatar Financial Centre (QFC) or Qatar Science & Technology Park (QSTP) may be exempt from WHT.
• Non-residents: any legal entity or individual that does not have a permanent establishment in Qatar but receives income from Qatari sources.
• If a non-resident receives income through a permanent establishment in Qatar, WHT is not levied – the income is subject to corporate tax at a rate of 10% or 35% depending on the industry.

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Tax base

• Payments for the provision of services, work or advice within Qatar
• Royalty
• Dividends
• Dividends are not taxed in Qatar if they are received from profits that have already been taxed or that were received by companies that are exempt from tax.
• Interest on loans, credits or bonds
• Commission payments

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Rate - 5% in Mainland

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One of the main features of Qatar is the absence of personal income tax for both citizens and foreign residents. 

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Some companies may withhold contributions as part of their corporate policy, which is governed by social security legislation.

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It is worth considering that the income of an individual who conducts his business in Qatar may be subject to income tax if this person receives income from sources in Qatar.