Do companies pay tax in Qatar, and how much?

Who pays corporate income tax in Qatar?

Qatar taxes companies' annual taxable income from Qatari sources (Article 2 of the Income Tax Law). Profit belonging to resident Qatari and GCC nationals is exempt, so ownership decides the bill.

The owners must be resident, be the real beneficial owners and hold the shares for the whole accounting period, and the company must keep proper books (Article 4; Article 2 of the Executive Regulations). State-owned petroleum and petrochemical companies are excluded. Shares held in a Qatari's name for a foreign owner earn no exemption and may breach the anti-concealment law; see commercial concealment in Qatar.

What is the corporate tax rate in Qatar?

The standard rate is 10 per cent of taxable income (Article 9). Taxable income is gross income less documented expenses needed to earn it and losses carried forward up to five years (Article 7; Article 5 of the Regulations).

Dividends paid from profits already taxed are exempt (Article 4(8)), and salaries and wages are outside the law.

What changed for large multinational groups in 2025?

Law No. 22 of 2024 brought in the global minimum tax (Pillar Two) for fiscal years starting from 1 January 2025. It covers groups with consolidated revenue of EUR 750 million or more in two of the four previous years (Council of Ministers Decision No. 2 of 2026). Their Qatar entities pay a Domestic Minimum Top-Up Tax (DMTT) lifting tax on Qatar profits to 15 per cent, and a Qatar parent applies the Income Inclusion Rule (IIR) to low-taxed group entities abroad. The rules override the QFC and free zone regimes (Article 23 bis 8).

Late returns cost QAR 500 a day up to QAR 180,000, and failing to register costs QAR 20,000 (Article 23 bis 7). For years starting up to 31 December 2026, penalties are cancelled where the group took reasonable steps in good faith (Article 4 of Law No. 22 of 2024).

How does withholding tax work on payments abroad?

Royalties, interest, commissions and service fees paid to a non-resident, for activity not connected with a permanent establishment in Qatar, carry a final withholding tax of 5 per cent of the gross amount (Article 9(2)). A service is caught if any necessary work is done in Qatar, or if it is used here (Article 21 of the Regulations).

• Pay it over before the 16th of the following month and give the payee a certificate (Article 24 of the Regulations).
• Nothing is withheld from holders of a Qatari tax card or from QFC-registered firms (Article 23).
• Interest on bank deposits, bank loans and state bonds is excluded, as are reinsurance, freight and ticket sales (Article 21).
• Under a tax treaty the payee claims a refund; since 16 March 2026, an "approved debtor" can apply treaty relief at payment (Council of Ministers Decision No. 4 of 2026).

A payer who fails to withhold owes the tax plus an equal penalty (Article 24(7)). Contracts with non-residents lacking a permanent establishment must be notified to the Authority (Article 37 of the Regulations), so settle in the contract who bears the 5 per cent; see reviewing a contract before you sign.

How do registration and tax returns work on Dhareeba?

Filing happens on the General Tax Authority's Dhareeba portal (Article 69 of the Regulations), once the company exists; see registering a company in Qatar. Exempt companies must file too, or face a QAR 10,000 penalty (Articles 11 and 24).

Accounts audited by a Qatar-registered auditor are required above QAR 200,000 of capital or QAR 500,000 of income, or where the head office is abroad (Article 33); the Authority says firms with foreign partners need them at any size. Late filing costs QAR 500 a day up to QAR 180,000, and late payment 2 per cent a month up to the tax due (Article 24).

An assessment can be objected to within 30 days, then taken to the Tax Appeals Committee within 30 days (Articles 17 and 18; Article 43 of the Regulations).

What about the QFC, free zones, zakat and VAT?

The Qatar Financial Centre has its own tax regime (Article 17 of Law No. 7 of 2005). It states a 10 per cent rate, with returns and tax due six months after the accounting period. In the free zones, the Income Tax Law does not apply for twenty years, renewable by the Council of Ministers (Article 7 of Law No. 34 of 2005).

We found no law requiring companies to pay zakat to the State; Law No. 12 of 2021 governs how the Ministry of Awqaf receives and spends it. Zakat a company pays is deductible as a donation, up to 3 per cent of net income with other donations (Article 8 of the Regulations).

Qatar has not applied VAT, according to the General Tax Authority. Excise tax applies to goods such as tobacco, energy drinks and sweetened drinks (Law No. 25 of 2018, amended in 2026).

When should you speak to a lawyer or tax adviser?

An accountant usually prepares the return; a lawyer helps with ownership structures, contracts and disputes with the Authority. Signs to get advice:

• You have foreign partners, or the Qatari share is held through a company or by an owner living abroad.
• You pay suppliers abroad and have not been withholding.
• You have received an assessment; the objection window is 30 days.
• Your group may be within the global minimum tax and has not registered.
• You are selling shares in a Qatari company or restructuring a group.
• Partners disagree over after-tax profit; see our guide to partner disputes.

Questions people ask