Tax Services in Qatar

Decisions over taxation can save or cost a company a substantial amount of money. It is worthwhile for a firm to develop a proper tax regime with respect to its operations and locations to make the most of the tax laws applicable in a region.

Filing tax returns for anyone can be a complex task, especially if you are a businessman and have to manage both business and filing tax returns. However, regardless of how tedious tax is, it is very important that you file your business tax returns because it involves a lot of benefits that may work in favor of your company.

Qatar operates a territorial taxation system. Unless specifically exempt from tax, an entity is taxable in Qatar if it has generated Qatar-sourced income, regardless of the place of its incorporation. Currently, Qatar tax system has three regimes in which foreign investors can operate. The tax regimes are the State of Qatar, the Qatar Financial Center (QFC), and the Qatar Science and Technology Park (QSTP).

How Does Taxation in Qatar Work?

Companies established in Qatar enjoy relatively lower taxes than most of the countries. As per the Qatar Tax Laws, the companies should register with the Public Revenues and Taxes Department (PRTD) within 30 days of the Commercial Registration. If a company fails to do so, they are subjected to a penalty of QR5,000.

The country has no provision of Qatar income tax, value-added tax, sales tax, wealth tax or capital tax, one of the reasons why investors look for company formation in Qatar. The taxation in Qatar comprises the following elements:

  • Corporate Tax
  • Import Duties
  • Service Tax
  • Withholding Tax

Corporate Tax

According to the Qatar law, a body corporate is resident in Qatar if it is incorporated under Qatari law or of its head office or its place of effective management is in Qatar. Its profits attributable to non-Qatar nationals are generally subject to income tax at a flat rate of 10%. A different tax rate may apply to entities with oil and gas operations or where the activities are carried out under an agreement with the government. No corporate tax in Qatar is levied on a corporate entity that is wholly owned by Qatari and Gulf Cooperation Council (GCC) nationals.

Withholding Tax

A tax law in Qatar introduced a requirement for all the entities registered in Qatar or with a permanent establishment in Qatar to withhold a percentage of certain payments made to non-resident. In Qatar, there is no withholding tax on dividends. But royalties are subject to a 5% withholding tax.  Certain leasing charges may be considered royalties. And the rate may be further reduced under the tax treaty. Other than royalties, technical service fees paid to non-residents are subject to a 5% withholding tax. And a 7% withholding tax applies to commissions, brokerage fees, director’s fees, attendance fees, and fees for other services performed in the whole or a part of Qatar.

Custom Duties

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

Anti-Avoidance and Transfer Pricing

The tax law gives power to the Qatar Tax Department (QTD) to counteract any tax advantage obtained by arrangements, operations or transactions, one of the main purposes of which is to avoid paying tax. In those cases where tax avoidance is present, the QTD may apply the arm’s length value to the particular transaction and adjust the amount of tax due by the taxpayer.

VAT in Qatar

Currently there is no VAT in Qatar, but according to the GCC VAT Framework Agreement, which was signed by all member states, the latest date for implementing VAT is 1st January 2019. VAT will impact most sales of goods and services in Qatar, with limited exemptions (e.g. financial services, insurance) and consumption tax relief. VAT-registered businesses will be able to claim credit for VAT paid on their expenditure, relating to their taxable business activities.

Our Offerings

We at Business Setup Worldwide utilize our knowledge to provide companies with a range of effective solution. Our services in Qatar include:

  • Identifying tax risks
  • Choosing an effective tax structure
  • Processing the required documents
  • Filing tax according to the tax legislation system of Qatar

Why Us?

Business Setup Worldwide helps you with filing your tax returns in Qatar. We provide tax consulting services to assist you in developing and implementing tax solutions to minimize the impact of tax on your business transactions. We offer you practical solutions to address your tax needs and in-depth knowledge of Qatar tax requirements. With our tax professionals, we are in a unique position to deal with the complexities and peculiarities of the Qatari tax system and also help you to meet the challenges of an increasingly sophisticated market. To know more, contact us today.

Business Setup Advisor

NARESH DASARI

Al Rufa Tower

Concord Business Center

First Floor, Office No.1

Old Salata 

PO Box 30653

Doha

Qatar

 

Phone: ​+974 4417 2674

Email: info@businesssetup.com

Mob: +974 6603 9472

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