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Updated 2 months ago

Income tax and value-added tax (VAT) are non-existent in Qatar. Moreover, it has a non-double taxation agreement with some countries.

Income tax

In Qatar, there is no income tax, which makes it a very attractive place to work for many expatriates. Your net and gross and salaries should be identical and as such should be considered in the evaluation of your salary package and benefits. There is also no levy or expectation for social security or national pension requirements. However, it is important to check if your country has signed bilateral double taxation agreements with Qatar. If not, you will have to pay income tax in your home country.

At present, there are treaties with 59 nations in place and a further 36 that are in process. There are also restrictions on how many days you can travel back to your home country before being considered a resident and be subjected to your home country’s tax laws. Please check with your home embassy or a financial advisor for more information. Residents in Qatar are defined as anyone who owns permanent accommodation in the State of Qatar, or stayed in for more than 183 days continuously or intermittently during (12) months, or has vital interests are linked to Qatar.

Corporate tax

The rate of tax is 10% of a company’s Total State Income, on an annual basis. This fixed rate is only applicable to businesses (with some exemptions listed in the next section). Typical business costs are deductible and losses can be calculated over periods of no longer than 3 years from the original accounting declaration.

“Commercial Activity” would include any profession, vocation, service, trade, industry, contractual work, or any profit-generating enterprise. Rental income is also subject to a fixed tax rate of 10%.

Tax exemptions apply to the following:

  • Profits and revenues on Public Treasury Bonds, Development Bonds, and Public Corporation Bonds.
  • Dividends and other income from shares that comply with conditions set out in Article 4, Law No. 21 of the year 2009.
  • Small handicraft businesses (three employees or less).
  • Income of companies working in agriculture, fisheries, aerial, and maritime transportation, on condition of reciprocity.
  • Qatari legal individuals residing in the State.

Estate or Gift Taxes

Income from succession and inheritances falls outside of the scope of Qatar’s tax policies.

Even if you have moved to Qatar, your estate may be liable to inheritance tax (IHT) in your old home nation, or any nation where you hold assets.  

VAT

According to the GCC VAT Framework Agreement, which was signed by all member states, the latest date for implementing VAT is 1 January 2019. During 2018, it was anticipated that Qatar will introduce VAT at a rate of 5%. However, due to the current blockade, these plans have been delayed for the time being as explained by this source.

 Useful links:

Qatar Ministry of Finance
Qatar Ministry of Business and Trade
Hukoomi - Qatar Government Online - Taxes in Qatar

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