Qatar

Corporate - Taxes on corporate income

Last reviewed - 10 December 2019

An entity that is wholly or partially foreign owned and that derives income from sources in Qatar is taxable in Qatar. In the case of a joint venture, the tax liability of the joint venture is dependent upon the foreign partners’ share of the joint venture's profit. Currently, no corporate income tax (CIT) is levied on a corporate entity that is wholly owned by Qatari nationals and GCC nationals.

Unless specifically exempt from tax, an entity will be taxable in Qatar if it has generated Qatar-source income, regardless of the place of its incorporation.

Taxable income generally is subject to a flat (CIT) rate of 10%, with certain exceptions available.

The following tax rates apply in the specific circumstances noted:

  • If a special agreement was reached with the government of Qatar prior to 1 January 2010, the rate specified in the agreement continues to apply. If no rate is specified in the agreement, a rate of 35% will be used.
  • The rate applied with respect to oil operations, as defined in Law No. 3 of 2007, may not be less than 35%.
  • Payments made to non-residents with respect to certain service activities not connected with a PE in Qatar are subject to withholding taxes (WHTs) (see the Withholding taxes section).

Local income taxes

There are no local, state, or provincial government taxes on income in Qatar.