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Updated August 2023
Qatar is a nation renowned for its rapid modernization, economic prosperity, and cultural diversity. Its remarkable journey from a traditional economy to a modern global player has been made possible through the implementation of well-thought-out financial policies and structures. Income tax is one of the integral aspects of Qatar’s financial policies.
In this article, Wego provides a comprehensive guide to the prevailing income tax regulations in Qatar.
Table of Contents
Qatar income tax law
In Qatar, income tax is a method used by the government to collect a portion of individuals’ and businesses’ earnings in order to fund public services and projects. According to the Income Tax Law introduced in 2018, individuals and businesses making money in Qatar are subject to a 10% income tax on their earnings.
The tax rate is determined based on the source of income. For most people and businesses earning money within Qatar, a flat rate of 10% of the income is levied as income tax.
Nevertheless, there are specific exceptions to this rule. Companies based in Qatar might not be taxed on their profits under certain circumstances. Additionally, for Qatari individuals who own a part of a company, the income received from that company might enjoy reduced or exempted taxation. These exceptions are designed to promote Qatari ownership and provide support to local businesses.
Qatar income tax rate
Please note that income generated within Qatar is generally taxable unless there are specific exemptions that apply. The standard CIT rate stands at 10%, but there are certain exceptions that can result in a different tax rate being applied.
Qatar income tax on salary
In Qatar, there is no income tax imposed on salaries, wages, and allowances for employed individuals. This means that if you are an employee in Qatar, you will not be subject to paying income tax on your salary. The following are the sources of income that can be accrued by individuals in Qatar and the tax conditions liable to each of them.
|Type of Income||Tax Condition|
|Employment income||Not taxed – salaries, wages, and allowances of employed individuals are not subject to income tax.|
|Business income||Taxable if engaged in business activity in Qatar, generating qualifying Qatar-source business income.|
|Self-employment||Subject to tax if self-employed and earning qualifying income from sources in Qatar.|
|Capital gains||Capital gains on real estate and securities are tax-exempt if not part of taxable activity’s assets. Non-resident capital gains are subject to a 10% tax if Qatar-sourced.|
|Dividend income||Tax-free if received from taxed profits or exempt companies.|
|Interest income||Not taxed – bank interest and returns for individuals not engaged in taxable activity are exempt.|
|Rental income||Not taxed – rental payments for individuals not engaged in a taxable activity are not subject to tax.|
Qatar income tax for corporates
Entities earning income in Qatar, regardless of whether they are foreign-owned wholly or partially, are subject to taxation. In the case of joint ventures, the tax is calculated based on the share of profits belonging to the foreign partners. However, corporations that are fully owned by Qatari or Gulf Cooperation Council (GCC) nationals residing in Qatar are exempt from corporate income tax (CIT).
Qatar income tax for expats
The majority of expatriates residing in Qatar do not have to file tax returns, as the country does not impose taxation on wages and salaries. However, expats who run their own businesses or work as self-employed individuals are generally required to pay a 10% income tax and submit a personal tax return. It is important to note that the taxes applicable to the mentioned sources of income for individuals will also apply to expatriates.
However, expats should be aware that they may still have tax responsibilities in their home countries based on tax residency regulations and any existing international tax agreements. To ensure compliance and explore potential benefits, it is highly recommended that expatriates seek advice from their home country’s tax authorities or consult with a qualified tax advisor.
Qatar income tax filing deadline
In previous years, the original deadline for tax filing in Qatar was 30 April for tax returns covering the year ending on 31 December. However, for this year (2023), the General Tax Authority (GTA) extended the tax filing deadline by one month to 31 May.
Please note, however, that this deadline extension may not be provided in 2024. Therefore, taxpayers should plan to file their tax returns by the original deadline of 30 April unless an official extension is announced by the GTA.
Qatar income tax how to file
Income tax returns can be filed through the Dhareeba portal.
Dhareeba is an electronic system that connects the General Tax Authority and its partners from relevant government agencies to the taxpayers. It automatically calculates and processes the various types of tax to assist taxpayers in managing their tax transactions in accordance with the Qatari tax laws.
Here are the steps for paying your income tax returns on the Dhareeba portal via bank transfer:
Step 1: Log in
Start by clicking “Log-in” on the Dhareeba portal. Use your National Authentication System Username and Password, then click “Continue.”
Step 2: Dashboard
After logging in, go to “Payments/Refunds” and select “Total Due Payments.” See the outstanding amount in various currencies.
Step 3: Payment selection
Review details and check desired payments on the “Payments” screen. Choose the amount and click “Continue to Payment.”
Step 4: Payment process
Opt for “Bank Transfer” and proceed. Access the “Payment Instructions Slip” for payment details. Remember to include the “Payment Reference Number” in your bank transfer remarks.
Qatar income tax return form
You can access the income tax return form for tax declaration if you are a 100% Qatari/GCC National Resident residing in Qatar.
The steps for doing so are as follows:
Step 1: Log in
Log in to Dhareeba portal, which will redirect to the NAS portal, where you can login using QID or Email and password.
Step 2: Access form
Choose Taxpayer TIN, click “Continue,” then pick “Return/Statement” and “Filing Obligations.” Select Income Tax Obligation to open the Income Tax Return Form.
Step 3: Follow steps
Read and follow provided Instructions, then click “Start Now.”
Step 4: Provide info
Enter annual revenue, expenses (rentals, salaries, general), and related data.
Step 5: Review summary
Check details in the Summary: Revenue, Expenses, Taxable Income, Tax Due, Penalties (if any).
Step 6: Declare and submit
Complete declaration with designation, check ‘Terms and Conditions’ and ‘Declaration,’ then click ‘Submit.’ After submission, an acknowledgment appears. Pay if needed or close for later payment.
Qatar income tax executive regulations
On 16 May 2023, Qatar’s Income Tax Law and Executive Regulations underwent notable amendments. This follows the previous amendment to the Income Tax Law carried out on 2 February 2023.
Some of the significant changes included in this amendment are:
- broadened Permanent Establishment (PE) Definition: Aligning with international tax principles, the definition of PE has been expanded
- significant Changes in Profit Attribution and Deductibility: Notable alterations to profit attribution and expense deductibility are introduced for PEs and branches
- enhanced Exchange of Information: Provisions are made for increased information exchange with competent authorities
- extended Registration and Filing Scope: The scope of registration and filing requirements is expanded
These amendments signal a transformative shift in Qatar’s tax landscape, prompting foreign investors to assess and adapt their operations in response.