Qatar

Individual - Other taxes

Last reviewed - 19 August 2021

Social security contributions

Employers have to pay social insurance in respect of Qatari employees.

Consumption taxes

Implementation of a value-added tax (VAT)

The Gulf Cooperation Council (GCC) countries have signed a VAT common framework, which forms the legal basis for the introduction of a VAT system in each of the GCC member states (Kingdom of Bahrain, State of Kuwait, Sultanate of Oman, State of Qatar, Kingdom of Saudi Arabia, and the United Arab Emirates).

Saudi Arabia and the United Arab Emirates have implemented VAT as of January 2018. Bahrain has implemented VAT as of January 2019. Oman has committed to implement VAT in April 2021. The other GCC member states are also expected to issue their own VAT legislation. The Cabinet of Qatar has approved a draft law on VAT and its executive regulations as put forth by the Qatar Ministry of Finance. The laws and respective executive regulations have not been published yet. While the GTA has not made any communication in this regard, given the recent resolution of the blockade on Qatar, there is an increase in the expectation in the market that the introduction of VAT in Qatar may occur in the near future.

 

Net wealth/worth taxes

There are no net wealth/worth taxes in Qatar.

Inheritance, estate, and gift taxes

There are no inheritance, estate, or gift taxes in Qatar.

Property taxes

There are no property taxes in Qatar. However, fees may be payable to the government by the owner on the registration of property and by the landlord on the registration of leases.

Luxury and excise taxes

The Excise Tax Law is in effect from 1 January 2019 and sets out various rules and obligations for taxpayers. Excise tax is applicable on the following goods ('excise goods') at their respective tax rates.

  • Tobacco products: 100%.
  • Carbonated drinks (non-flavoured aerated water excluded): 50%.
  • Energy drinks: 100%.
  • Special purpose goods: 100%.

Special purpose goods may refer to alcohol and pork items, although this has not been officially confirmed by the Ministry of Finance/Customs yet. Persons engaged in the import and production of excise goods, as well as the operation of a tax warehouse, will be required to register for excise tax purposes.

Customs duties

Customs duties are applied to goods with an origin outside the GCC countries, normally at a rate of 5%, but sometimes at higher rates for specific types of goods, such as tobacco products. Temporary import exemptions are sometimes available.