Qatar

Individual - Income determination

Last reviewed - 19 August 2021

Employment income

Income tax is not imposed on employed individuals' salaries, wages, and allowances.

Business income

An individual is taxable in Qatar if it has generated qualifying Qatar-source business income i.e is engaged in the activity in Qatar. Activity is defined as any profession, vocation, service, trade, industry, speculation, contractual work or any business carried on deriving a profit or an income including the exploitation of a movable or an immovable property.

A self-employed individual may be subject to income tax if one derives qualifying income from sources in Qatar and is engaged in the activity in the state.

Capital gains

Capital gains on the disposal of real estate and securities derived by the individual are exempt from taxation provided such real estate and securities are not part of the assets of a taxable activity.

Capital gains derived by non-residents, to the extent such gains are 'Qatar-sourced', are subject to 10% income tax.

Capital gains tax returns should be submitted within 30 days from the sale of 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

Bank interest and returns due to individuals other than those carrying on a taxable activity in the State of Qatar are not subject to income tax.

Rental income 

Rental payments due to individuals other than those carrying on a taxable activity in the State of Qatar are not subject to income tax.