Qatar applies a company tax rate of 10% of a company's total state income, paid annually. This fixed rate applies only to businesses, not to individual incomes — there is no tax on personal income in Qatar, so employees take home their wages and salaries without any tax deducted.
An individual who exercises commercial activity with the intention of gaining income is required to pay tax under the Companies Tax law. Typical business costs are deductible, and losses can be rolled over for a period of up to 3 years from the original accounting declaration. Rental income is also subject to the fixed 10% tax rate.
Total State Income — the base on which tax is calculated — includes income from operating any commercial activity within the State, contracts executed within Qatar, property and share income, services provided by the main company and related firms, and income on loans provided by the State.
Qatar has favourable Double Taxation Agreements with over 40 countries, and remains one of a number of low-taxation countries globally, which makes it attractive to both individuals and companies. Certain profits are exempt from tax entirely — including income on Public Treasury Bonds, small handcraft businesses of three employees or less, and companies working in agriculture, fisheries and air/maritime transport on a reciprocal basis.
Auditment has provided tax advisory and compliance services in Qatar since 2001. If you have questions about your company's tax position, request a proposal and our team will guide you through it.
