Withholding tax (Qatar)

Meaning

Under Law No. 24 of 2018, royalties, interest, commissions and fees for services performed wholly or partly in Qatar, paid to a non-resident for activities not connected with a permanent establishment in Qatar, carry a final withholding tax of 5% of the gross amount, with no costs deducted. The 5% and 7% often quoted belong to the repealed 2009 law; a tax treaty can lower the rate.

The payer withholds the tax, gives the payee a certificate on the GTA's form, and remits the tax with its statement on Dhareeba before the 16th day of the month after the payment. A payer that does not withhold bears a penalty equal to the tax it failed to withhold, as well as the tax; paying late adds 2% a month.

Also called: Qatar WHT · withholding tax Qatar · tax deducted at source Qatar

Example

Al Waha Trading W.L.L. pays a non-resident software firm QAR 60,000 in October for support delivered partly in Qatar. It withholds QAR 3,000, pays the firm QAR 57,000, and remits the QAR 3,000 with its statement on Dhareeba by 15 November.