Income Tax in Qatar. Income Tax Law No. (21) for the year Member of Russell Bedford International, with affiliated offices worldwide

Size: px

Start display at page:

Download "Income Tax in Qatar. Income Tax Law No. (21) for the year Member of Russell Bedford International, with affiliated offices worldwide"

Dayna Page
6 years ago
Views:

1 Income Tax in Qatar Business consultants with global perspective Income Tax Law No. (21) for the year 2009 Member of Russell Bedford International, with affiliated offices worldwide

Russell Bedford and Russell Bedford International are registered trademarks, member firms use the Russell Bedford name under license.

2 CONTENT Page 01 CORPORATE INCOME TAX LAW Page 02 WITHHOLDING TAX LAW Page 03 OUR TAX ADVISORY SERVICES LEGAL DISCLAIMER Russell Bedford International refers to an association of professional services firms, each of which is separate and independent legal entity. Russell Bedford and Russell Bedford International are registered trademarks, member firms use the Russell Bedford name under license. All services provided independently and by member firms of Russell Bedford International, and each member is solely responsible for its work in behalf of its clients.

3 CORPORATE INCOME TAX LAW H.H. Shiekh Tamim Bin Hamad Al Thani, the Emir of State of Qatar has issued Law No. 21 of the year This Law should be effective on January 1st, and it has been published in the 12th edition of the gazette on December 27th, Overview: - The corporate tax rate for foreign-owned companies, as of January 1, 2010, is a flat rate of 10 per cent, which replaces a previous progressive rate. The flat rate applies to business revenues only, not those of individuals. - Tax is not levied on Qatari owned business enterprises. However, If the Company s Turnover was 10 Million Qatari Riyals and above and/or the Share Capital was 2 Million Qatari Riyals and above; then the company has only to submit Income Tax return (Form No. 3). - Law No. (9) of 1989 provides that nationals of Gulf Co-operation Council States are, from 1 March 1989, to be treated as Qatari citizens for income tax purposes. Accordingly, foreign companies wholly owned by Gulf nationals are not subject to income tax in Qatar. Income Tax Law No. (21) for the year

4 Tax Exemptions - Capital gains not related to businesses are exempt. - Interest and returns on public treasury bonds, development bonds and public corporation bonds are tax exempt. - Dividends and other income from shares are tax exempt. - Small (three employees or less) handcraft businesses are tax exempt. - Income from agriculture and fishing and air and sea transport companies is tax exempt. Income From State Income from state includes gross income from: - An activity carried on in the State. - Contracts performed in the State. - Real estate in the State, including the sale of shares from companies or partnerships whose primary assets are real estate. - Services paid to head offices, branches or related companies. - Interest on loans obtained in the State. - Qatari natural persons in the State are tax exempt. People working in Qatar enjoy tax-free salaries. Income Tax is levied on all foreign businesses operating in Qatar, whether the business is considered a natural person or a legal entity. 4 Income Tax Law No. (21) for the year 2009

- Supply of Materials (inventory) or Fixed assets (furniture, motor vehicles, Software, etc.) are not considered as withholding tax items.

5 WITHHOLDING TAX LAW Withholding Tax - The Vendor is a natural person or legal entity that has no Qatari Commercial Register. - The contract/agreement was signed inside the State of Qatar or the services was rendered inside the state of Qatar. - Supply of Materials (inventory) or Fixed assets (furniture, motor vehicles, Software, etc.) are not considered as withholding tax items. Withholding Tax rates - (5%) five percent of the gross amount of royalties and technical fees. - (7%) seven percent of the gross amount of interest, commissions, brokerage fees, director s fees, attendance fees and any other payments for services carried out wholly or partly in the State of Qatar. Income Tax Law No. (21) for the year

OUR TAX ADVISORY SERVICES For further assistance, please contact: Mr. Hani Mukhaimer Managing Partner E: hani.mukhaimer@russellbedford.

6 OUR TAX ADVISORY SERVICES For further assistance, please contact: Mr. Hani Mukhaimer Managing Partner E: Tax systems are characterized by its extreme complexity and variability. Expected amendments and modifications to the laws and other tax rules in the future, point to the need for a detailed review of compliance. Mr. Samer Hassan Audit Manager E: samer.hassan@russellbedford.qa Mr. Ahmad Mukhaimer Senior Tax Advisor E: ahmad.mukhaimer@russellbedford.qa How Can We Help You? Our tax specialists are fully dedicated to the study and analysis of the different tax laws and amendments. They will streamline your company s tax burden and identify areas of opportunity to make the most of all available tax benefits. To assist you in each stage of your strategic process, we have highly qualified professionals in: - Filing of Income Tax Return. - Apply and renew tax cards, and follow up other matters relating tax. - Withholding tax advisory. - Income Tax Law Training Courses. - Advisement on international tax treaties (double taxation). - Tax refunds and offsets. 6 Income Tax Law No. (21) for the year 2009

7 Russell Bedford Saoud Abdulla - RBSA Business consultants with global perspective AlMuntazah Building 2 nd Floor, Office #3 Doha - Qatar T: F: E: inquiry@russellbedford.qa W:

Headline Verdana Bold Qatar Tax Seminar 2016 Managing the sharp climb of tax expansion

Headline Verdana Bold Qatar Tax Seminar 2016 Managing the sharp climb of tax expansion December 14, 2016 Agenda Topic Overview of the Qatar Tax s System Corporate Tax Withholding Tax Practical Issues Questions