Income Tax Return
The rate of tax is 10% of a company’s Total State Income, paid annually. This fixed rate is only applicable on businesses and not on individuals’ incomes (see Personal Tax above). Typical business costs are deductible and losses can be rolled over for a period no longer than 3 years from the original accounting declaration.
“Commercial Activity” means any profession, vocation, service, trade, industry, speculation, contractual work or any profit & income making business. Rental income is subject also to a fixed tax rate of 10 %.
How is Company Tax calculated?
A company (or individual) is required to pay tax on income that has been generated in from sources in the State during the previous tax year. This Total State Income includes:
Operating any commercial activity within the State.
Contracts being executed totally or partially within the State
Properties in the State; including income from selling stocks, company shares, and individual companies that own real estate assets within State.
Services provided by the main company, branches and other related firms
Income on loans provided by the State.
Total State Income, which results through the exploiting, exploration or production of the State’s natural resources, may be subject to additional taxation under the Double Tax Agreement signed in the Country of registered origin of the company. Qatar has favorable Double Taxation Agreements with over 40 countries. (Check whether your country has an agreement in place.)
Tax exemptions apply to the following:
Profits and revenues on Public Treasury Bonds, Development Bonds and Public Corporation Bonds.
Dividends and other income from shares that comply with conditions set out in Article 4, Law No. 21 of the year 2009.
Small handcraft businesses )three employees or less).
Income of companies working in agriculture, fisheries, aerial and maritime transportation, on condition of reciprocity.
Qatari legal persons residing in the State.