Laws and Regulations
General Tax Authority
Income Tax Law and Regulation
Under the provisions of Law No. 24 of 2018 and it's amendment promulgating the Income Tax Law, the applicable tax rate for the tax year shall amount to 10% of the taxpayer's taxable income.
2. International organizations and their offices and branches operating in the State.
3. Salaries, wages, allowances, and the like.
4. Gross income from legacies and inheritance.
- Income Tax in Qatar is imposed based on the income source, with a few specific exemptions. Generally, Qatar-sourced income earned by individuals or resident corporate entities is subject to a 10% income tax rate. However, profits of legal persons' resident in Qatar are exempted in proportion to the dividends of Qatari natural persons and the ownership percentage of entities wholly or partially owned by Qataris based on their respective dividends.
- A tax rate of no less than 35% is applied to entities working in the field of oil and gas, or to which the government, ministries, or other government agencies, or public bodies or institutions are a party. The tax rate and all other tax conditions stipulated in the agreements related to petrochemical industries, as well as related to petroleum operations shall be applied in accordance with the definition specified for them in Law No. (3) of 2007 concerning the exploitation of natural wealth and its resources, shall be applicable provided that the tax rate in all cases is not less than 35%.
- The tax rate stipulated in the agreements to which the government, ministries, other government agencies, public corporations or bodies, or the representative of the government is a party, and which are concluded prior to the entry of this Law into force, shall apply. If the agreement does not specify the tax rate, the tax shall be imposed by 35%.
- In this regard, the provisions of Law No. 24 of 2018 promulgating the Income Tax Law shall not apply to the following:
2. International organizations and their offices and branches operating in the State.
3. Salaries, wages, allowances, and the like.
4. Gross income from legacies and inheritance.
- It’s also stipulated in the abovementioned Income Tax Law that subject to the provisions of the tax agreements, the royalties, benefits, commissions, and consideration for services rendered in whole or in part in the State, paid to non-residents for activities not related to a permanent establishment in the State, shall be subject to a final deduction from the source by 5% of the total amount thereof, as specified by the Regulation.
Excise Tax Law and Regulation
Legal Framework:
- The Excise Tax is imposed according to the Unified Excise Tax Agreement for the Cooperation Council for the Arab Gulf Cooperation Council (GCC), which has been conducted in November 2016.
- The Excise Tax has been implemented in Qatar by the Law number (25) of 2018 on Excise Tax which came into force on January 01, 2019.
- Excise Tax represents an investment in Qatar’s future by building a healthier society. It is a consumption tax that applies to goods typically deemed harmful to human health and the environment.
- The revenues generated from the Excise Tax will be channeled toward enhancing public services, such as hospitals, infrastructure, and education. By contributing to achieving the Qatar National Vision 2030's social policy goals, the Excise Tax will serve to ensure a sustainable future for The State of Qatar and its forthcoming generations.
The Unified VAT Agreement of the Cooperation Council For The Arab States Of The Gulf
In December 2015, during its thirty-sixth session held in Riyadh, Saudi Arabia, the Supreme Council of the Gulf Cooperation Council (GCC) decided that all member states should implement the agreement on the uniform imposition of value-added tax (VAT) at a standard rate of 5%. This agreement aims to establish a unified legal framework for implementing a broad-based consumption tax called the Value Added Tax (VAT) across the GCC countries. The VAT shall be levied on the import and supply of goods and services at each stage of production and distribution in any member state. Each member state of the Gulf Cooperation Council shall ensure that the provisions of this cooperative agreement are incorporated into its domestic laws and regulations by its national applicable executive frameworks.
Amending Several Provisions Of Income Tax Law
Amending Several Provisions Of Income Tax Law
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