Qatar

Value-added tax (VAT)

Currently, Qatar imposes no VAT or sales tax on operations in Qatar. However, the introduction of VAT in Qatar under a common GCC framework is expected to be introduced in the near future. The anticipated tax rate is 5%.

Customs duties

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

In March 2020, the State of Qatar issued a COVID-19 response package including customs duties exemptions for food and medical goods for a period of six months, provided that this is reflected in the selling price to the consumer.

Excise taxes

Qatar has introduced excise tax from 1 January 2019. 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 are understood to include alcohol and pork items, and excise tax is currently applied on them. Persons engaged in the import and export of excise goods, as well as the operation of a tax warehouse, will be required to register for excise tax purposes.

In November 2022, the Ministry of Finance issued the Ministerial Decision No.12 2022 on Excise Tax refund providing a list of additional cases of refund of excise tax paid on excisable goods released for consumption but not consumed in Qatar. These cases include damaged, lost or stolen excise goods, excise goods which are sold locally but are intended to be consumed outside Qatar (e.g. goods to be sold in the duty free shops, on-board consumption, etc.)

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.

Transfer taxes

There are no transfer taxes in Qatar. However, share transfers of state entities require a formal ‘No Objection Confirmation’ from the General Tax Authority prior to the transfer being updated in the commercial register.

Stamp taxes

There are no stamp taxes in Qatar.

Payroll taxes

Employed individuals' salaries, wages, and allowances are not subject to personal income tax (PIT) in Qatar.

Social security contributions

Employers have to pay social insurance in respect of Qatari employees but have no obligations for employees of other nationalities.