Corporate - Income determination

Last reviewed - 21 August 2022

CIT is levied on a company's Qatar-source income. Some examples of Qatar-source income include the following:

  • Income derived from an activity carried on in Qatar.
  • Income derived from contracts wholly or partially performed in Qatar.
  • Income from real estate situated in Qatar, including income from the sale of shares of companies with assets consisting of mainly real estate situated in Qatar.
  • Income from shares in companies resident in Qatar.

Inventory valuation

Inventory must be valued in accordance with International Financial Reporting Standards (IFRS).

Capital gains

Any chargeable gains on the sale of capital assets are taxed as ordinary income. Specific rules exist in respect of gains realised on the disposal of real estate. Capital gains generated by non-residents are an area of increased focus for the GTA.

Under the Regulations, capital gains tax returns should be submitted within 30 days from the sale of the asset or concluding the contract, whichever is earlier.

Dividend income

Dividends are not taxable in Qatar if received from profits that have been subject to Qatar tax or from companies that are exempt from Qatar tax.

Interest income

Interest arising in Qatar and bank interest realised outside Qatar, if it results from the taxpayer’s activity in Qatar, are taxed as ordinary income.

Royalty income

Royalty income is taxed as ordinary income.

Foreign income

Non-Qatar-sourced income is not subject to tax in Qatar.