QATAR TAX REPORT 2025 / 2026

Qatar maintains a competitive tax environment to attract foreign investment. The state continues to delay Value Added Tax (VAT) implementation. Review these rates for the current fiscal year.

CORPORATE INCOME TAX (CIT)

The standard tax rate applies to the foreign investor's share of taxable profits. Wholly owned Qatari and GCC entities are generally exempt but must file tax returns.

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• Standard Rate: 10%

• Petroleum and Petrochemical Activities: 35% (minimum)

• Qatari / GCC Owned Businesses: 0% (subject to filing requirements)

• Global Minimum Tax (GMT): A 15% top-up tax applies to Multinational Enterprises (MNEs) with global revenues exceeding EUR 750 million. This rule became effective January 1, 2025.

PERSONAL INCOME TAX

Qatar does not levy income tax on individual earnings.

• Salaries and Wages: 0%

• Allowances: 0%

• Wealth Tax: 0%

WITHHOLDING TAX (WHT)

You must deduct tax at the source when making specific payments to non-residents. This applies to services used or benefited from in Qatar.

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• Royalties and Technical Fees: 5%

• Interest: 5%

• Commissions and Brokerage Fees: 5%

• Dividends: 0% (No withholding tax applies)

VALUE ADDED TAX (VAT)

Qatar has not yet implemented VAT.

• Current Status: Not implemented.

• Expected Rate: 5% (based on the GCC Framework Agreement).

• Implementation Date: Pending official announcement. No tax is payable for 2025 as of February.

EXCISE TAX

The government imposes this tax on goods deemed harmful to health.

• Tobacco Products: 100%

• Energy Drinks: 100%

• Carbonated Drinks: 50%

• Alcohol: 100%

• Special Purpose Goods (Pork): 100%

QATAR FINANCIAL CENTRE (QFC)

Entities registered in the QFC operate under a separate legal and tax regime.

• Corporate Tax Rate: 10% on locally sourced profits.

• Concessionary Rate: 0% for qualifying activities (e.g., holding companies, special purpose vehicles).

• Personal Income Tax: 0%

DHAREEBA TAX PORTAL

All taxpayers must register on the Dhareeba electronic portal.

• Registration Requirement: Mandatory for all companies.

• Tax Card: You must obtain a tax card within 30 days of commercial registration.

• Failure to Register: Results in a penalty of QAR 20,000.

COMPLIANCE DEADLINES

Strict deadlines apply to filing and payments.

• Tax Return Filing: Within 4 months after the end of the financial year.

• Tax Payment: Same date as the return filing deadline.

• Withholding Tax Remittance: By the 16th day of the month following the payment.

• Contract Reporting: You must report contracts with non-residents within 30 days via Dhareeba.