Personal Tax
Best thing about living in Qatar is its tax system as there is no tax on personal per capita income. This implies that employees get their wages and salaries without any tax deduction.
However, if a person who exercises any sort of business activity with the aim of gaining income is needed to pay tax as indicated by Companies Tax law (see Company Taxation below).
The total income of Qatari and GCC national’s resident in Qatar is excluded from paying tax. Anyone who owns a permanent accommodation in the State of Qatar are known as resident of Qatar or one who are staying in for more than 6 months continuously or intermittently during (12) months, or his vital interests are linked to Qatar.
Company Tax collection
Company has to pay the tax on annual basis which is 10% of company’s Total State Income. This fixed tax rate is applicable on total business income not on personal income. (see Individual Assessment above). Typical business costs are deductible and misfortunes can be turned over for a period no longer than 3 years from the original accounting declaration.
"Business Activity" means any profession, vocation, service, trade, industry, speculation, contractual work or any profit & income making business. Rental income also comes under business activity and subject to a fixed tax rate of 10 %.
More inside and out data can be found in the Law No.24 of 2018 on Tax Income.
How to calculate Company Tax?
A business organization (or individual) is needed to pay tax on income that has been produced in from sources in the State during the past tax year. The Total State Income consist of:
1. Operating any business activity within the State.
2. Agreements being executed absolutely or partially within the State.
3. Properties in the State; including pay from selling stocks, organization shares, and individual organizations that own land assets within State.
4. Services given by the main organization, branches and other related firms.
5. Income on loans provided by the State.
Complete State Income, which results through the misusing, investigation or production of the State's natural assets, might be dependent upon extra tax assessment under the Double Tax Agreement signed in the Country of registered origin of the organization. Qatar has good favourable Double Taxation Agreements with more than 40 nations.
To get more information on Tax, check Qatar Financial Centre's (QFC) Fact Sheet.
Non-taxable
Following are non-taxable:
1. Profits and incomes on Public Treasury Bonds, Development Bonds and Public Corporation Bonds.
2. Profits and other income from shares that agree with conditions set out in Law No.24 of 2018 on Tax Income.
3. small scale handcraft businesses (3 or less than 3 employees).
4. Income of Some organizations like agriculture, fisheries, aerial and maritime transportation, are also non-taxable on condition of reciprocity.
5. Qatari legal persons residing in the State.
Tax on capital income
Capital gains on the disposal of real estate and/or securities derived by an individual are exempt from Capital Gains Tax provided the asset is not part of a taxable activity
Other Taxes
There are no more taxes as Qatar is one of a number of low taxation countries around the globe, this is the reason why Qatar attracts individuals and companies (expats).
For more details check QFC Tax website.
In case if we have missed something or if there are any mistake please write that in the comment box.
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