What is Income Tax?

Pursuant to the provisions of Act No. 24 of 2018 promulgating the Income Tax Law, and effective from the date of issue, the tax rate will be 10% of the taxpayer’s taxable income for the tax year.

Income tax in Qatar is levied on the basis of the source of income, with limited exceptions. In general, Qatar-sourced income earned by individuals or resident corporate bodies is subject to income tax at a rate of 10%, whereas the earnings of resident legal persons are exempted by the percentage of dividends of Qatari natural persons and by the percentage of entities wholly owned by Qataris, as well as entities partly owned by Qataris, by the percentage of their dividends therein.

A different tax rate may apply to entities operating in the oil and gas sector or of which the Government, ministries, or other government agencies, bodies or public institutions are part owners.

With the exception of the profits of the wholly or partially, and directly or indirectly, State-owned entities, operating in the field of oil and petrochemical industries.

In this regard, and without prejudice to the provisions of article 9 (paragraph 2, second clause) and article 13 of Law 24/2018, the provisions of Law 24/2018 do not apply to the following:

  1. Ministries, government agencies and public bodies and institutions.
  2. International organisations and their branches operating in the country.
  3. Associations, private institutions and private institutions of public interest, established in accordance with the provisions of the law governing each of them.
  4. Salaries, wages, allowances and the like.
  5. Total bequest and inheritance income.

Complying with the deduction at source obligation applies to amounts paid to non-resident individuals or legal entities by any entity in the State of Qatar.