Tax Services in Qatar

One of the core planning that every business needs to go ahead with is tax planning. It serves to be an art performed by professional experts to reduce the tax amount to be paid to the government for a specific period. After the company registration process in Qatar, the next move should be tax planning. According to the Ministry of Economy and Commerce and the Qatar Tax Department, all companies in Qatar must draw up their final statements per the International Accounting Standards (IAS). If you are planning to set up a company in Qatar, you need to know the system of taxation in Qatar.

Qatar Tax

Qatar, one of the Arabian Peninsula countries, has been drastically moulding itself into a business investment hub. The country holds itself as one of the GCC countries and has been one of the eye-catching destinations for business investors, mainly because of the flexible tax structure. Here are a few types of taxes imposed in Qatar.

1. Company Tax

The corporate tax in Qatar is subjected to a payment of 10%. The nation holds a position among the lowest tax rate countries in the world.

2. Withholding Tax

It includes:

  • Dividends

Qatar doesn’t levy withholding tax on dividends.

  • Interest

Along with certain exceptions, the interest stands at 7%.

  • Royalties

Subjected to 5%.

  • Technical Service Fees

Subjected to 5%, payable to non-residents.

  • Retention

A retention tax of 3% is applicable.

  • Other

A rate of 7% is applicable to commissions, brokerage, and attendance fees.

3. Qatar Income Tax

It is to be noted that Qatar does not levy any specific tax on the salaries and wages of individuals. It also gives the flexibility of exemption for equity shares, profits gained on bank deposits, etc.

4. Selective Tax

The Qatari govt. has planned to levy a special tax on harmful goods or health-destroying goods. It includes a 100% tax on tobacco products, and 50% on all sugary drinks.

5. VAT

VAT implementation in Qatar will come into force by 1st Jan 2019. According to the GCC VAT Framework, all the GCC countries are expected to impose VAT at a rate of 5%.

Thus, you have a clear idea regarding the number of taxes available in Qatar. Next, let’s have a look at the main business sources of tax in Qatar.

Taxable Sources in Qatar

The main categories of taxable sources in Qatar include:

  • Activities carried out in Qatar
  • Contracts wholly or partially performed in Qatar
  • Real Estate in Qatar
  • Loans and interest obtained
  • Extraction of natural resources situated in Qatar

Now, the overhead stated points are the core sources through which taxes are charged in Qatar. Being a business owner or an entrepreneur, one should be aware of the Double Tax Agreement. Do read below.

Double Tax Relief in Qatar

The concept of double taxation is to eliminate the double tax that must be borne during the import-export process. The implementation of double tax treaties helps countries enter into multiple business agreements without fearing double taxes. To date, Qatar has signed more than 60+ tax treaties. This attracts foreign investors to a great extent. Moving ahead, let’s have a look at…

Qatar’s New Tax Laws

According to the new laws planned by the Qatari government, every business entity needs to follow the below stated:

  • The Qatari government has made a decision to implement General Tax
  • Certain exemptions are to be made for specific economic sectors
  • No income tax is to be levied on Qatari residents and citizens
  • Selective-tax would be implemented on harmful goods
  • VAT to be implemented by 2019

Thus, it can be easily understood that existing or new business entities must abide by the Qatari tax system to sustain the nation’s economy. Dealing with the taxation procedures turns out to be complex towards the end. So, for business entities, it turns out to be a feasible option to outsource the taxation services to professional experts who can deeply analyze the tax amount that needs to be paid. Tensed? Don’t worry! We have got it all covered.

Our Taxation Services

At Commitbiz, we stress on understanding the financial scenario of the business entity. Our tax-related services in Qatar include:

  • Developing tax strategies
  • Lessen the tax liabilities
  • Analyze the business income and tax to be paid
  • Filing Status and deductions
  • Selection of investments

Why Us?

Commitbiz stands as one of the leading business and tax advisors in the Middle East. We are a team of experts dedicated to the company establishment process, along with accounting, taxation, legal and visa services. If you are planning to opt for a taxation service or have any queries, do contact us – we’d be happy to assist you.