Withholding Tax

The concept of Withholding Tax:

It is a deduction imposed on any taxpayer who is not resident and not registered in the Commercial Register, for a contract or activity wholly or partly carried out in the state of Qatar, in respect of activities not related to a permanent establishment in the state, at the rate of 5% of the total amount thereof.


Who is in charge of Withholding Tax:

Any natural or legal person resident in Qatar shall be responsible for withholding tax on the amounts paid to non-resident beneficiaries. Such deductions are remitted to the General Tax Authority using WHT Form 2-1.

In accordance with the provisions of Article (9) Paragraph 2 of Law No. 24 of 2018 promulgating the Income Tax Law, effective from the date of issue, which states that:

Subject to the provisions of tax agreements, royalties, interests, commissions and payments for services carried out wholly or partly in the state of Qatar, made to non-residents with respect to activities not connected with a permanent establishment in the state, shall be subject to a final withholding tax at the rate of 5%, as determined by the Regulations.