Aqid ERPMeaning
Qatar's income tax, under Law No. 24 of 2018, is charged at 10% of taxable income on a company wholly or partly owned by foreigners that earns income from sources in Qatar. When a company has Qatari and foreign owners, the tax is worked out on the foreign partners' share of the profit only. No income tax is currently charged on a company wholly owned by Qatari nationals and GCC nationals resident in Qatar, but it files a return all the same.
The return is filed on Dhareeba within four months of the end of the tax year, by 30 April for a calendar year, and the tax is paid with it. Filing late costs QAR 500 a day up to QAR 180,000; paying late, 2% of the tax a month up to the tax itself. A company with a foreign owner files audited financial statements, whatever its size.
Also called: Qatar corporate income tax · corporate tax Qatar · income tax on companies Qatar
Example
Al Waha Trading W.L.L. is owned 51% by a Qatari partner and 49% by a foreign one and has QAR 800,000 of taxable income. The foreign share is QAR 392,000, so the tax is QAR 39,200; the Qatari partner's QAR 408,000 is not taxed.