A to Z of Business and Corporate Tax in Qatar

Qatar corporate tax framework requires firms to register with the Dhareeba portal, submit audited financial statements, and comply with annual tax return filings. The General Tax Authority enforces penalties for non-compliance, with fines for late submissions and registration failures reaching up to QAR 500,000. 

Qatar’s business tax landscape is governed by a territorial system, where income derived from within the country is subject to taxation, regardless of the legal residence or incorporation of the company.  

All taxable entities, whether Qatari-owned or foreign, must register with the Dhareeba tax portal and follow the deadlines for filing tax returns and submitting audited financial statements.  

Failure to comply attracts monetary penalties, ranging from QAR 500 (US$137.3) for delayed submissions to QAR 500,000 (US$137,340) for violations of registration obligations. Let us look at each of these obligations in detail. 

Corporate income tax: Who pays and how much

Corporate income tax (CIT) in Qatar is levied at a flat rate of 10 percent on profits generated from Qatari-sourced income. This applies primarily to foreign-owned entities or joint ventures with foreign partners. Wholly Qatari-owned businesses and companies owned by GCC nationals who are residents in Qatar are generally exempt from corporate income tax, although they may still be required to file tax returns depending on their activity. 

Oil and gas companies are subject to a higher tax burden. As outlined in Law No. 3 of 2007, entities involved in petroleum-related operations, such as exploration, production, transport, and refining, are taxed at a minimum of 35 percent. If an agreement with the government does not specify a rate, the 35 percent rate is enforced. 

Qatari-listed entities also need to contribute 2.5 percent of annual net profits to a dedicated fund that supports sporting, cultural, and social initiatives. 

Taxable income and deductions

Taxable income in Qatar is defined as income sourced within the country. This includes revenue from business operations, contracts executed wholly or partly within Qatar, services to affiliates, real estate transactions, interest on local loans, and natural resource exploitation.  

Deductions are allowed for legitimate business expenses such as employee costs, raw materials, rent and insurance, interest on loans, depreciation, and bad debts, as well as specific charitable donations (up to 5 percent of net income) and entertainment expenses (up to 2 percent). 

Filing and payment obligations

Taxpayers must file their returns within four months of the end of the financial year via the electronic Dhareeba platform. Payments are due by the same deadline.  

Delays in filing or payment can attract penalties and interest charges, which are discussed later in this article. Also, companies are required to retain accounting records for at least last 10 years. 

Permanent establishment and tax residency

A foreign company is considered to have a Permanent Establishment (PE) in Qatar if it maintains a fixed place of business or operates through a dependent agent for more than 183 days in a 12-month period. PE status triggers corporate tax obligations. Companies with PEs must also register commercially in Qatar. 

A company is treated as a tax resident if it is incorporated in Qatar or has its place of effective management in the country. 

See also: How to Navigate Intellectual Property Protection in Qatar 

Withholding tax and transfer pricing on cross-border payments

Qatar imposes a 5 percent withholding tax on payments to non-residents for services, interest, royalties, and commissions. These payments must be reported and remitted to the General Tax Authority (GTA) before the 16th day of the following month. No withholding tax is applicable for payments to entities with a valid Qatari tax card or those registered under the QFC regime. 

Transfer pricing regulations in Qatar align with the OECD framework. Multinational enterprises are required to prepare and submit documentation such as Master Files, Local Files, and Country-by-Country Reports (CbCR) to substantiate their pricing models for related-party transactions. 

Capital gains tax and exemptions

Capital gains are taxed at the standard corporate rate of 10 percent, and at 35 percent if related to oil or petrochemical operations. The gains subject to taxation include profits from the sale of real estate, securities, and other assets within Qatar. 

Capital gains exemptions are available in specific cases. For example, natural persons disposing of real estate or securities unrelated to business assets are exempt. Gains from in-kind contributions to capital increase in joint-stock companies are also exempt (subject to terms and conditions). 

Taxpayers need to report capital gains within 30 days of concluding a sale or disposal contract unless already covered under the regular income tax return. 

Losses incurred from taxable activities can be carried forward for five years under the state tax regime. On the other hand, QFC entities may carry losses forward indefinitely, provided there is no major change in ownership or business activity. 

Excise duties

Excise tax applies to products such as tobacco, energy drinks, and soft drinks, with rates ranging from 50 percent to 100 percent. So, the businesses that import, produce, or warehouse excise goods are required to register and comply with strict documentation and filing protocols. The revenues collected from this duty are earmarked for social development and public health initiatives under Qatar’s Vision 2030 framework. 

Free zones and tax incentives

Qatar offers several free zones with attractive tax benefits: 

• Qatar Free Zones Authority (QFZA) manages Ras Bufontas and Umm Alhoul zones, offering up to 20-year tax holidays and full foreign ownership;  
• Qatar Science and Technology Park (QSTP) focuses on research and development (R&D) and grants tax exemptions; and 
• Qatar Financial Centre (QFC) provides a separate legal and tax environment based on English common law. 

QFC tax regime provides alternative rules for certain entities

Entities licensed under the QFC enjoy a 10 percent corporate income tax on local profits. Certain services, that are provided in Qatar but used abroad, may be excluded from taxation, subject to documentation and conditions. Dividends and capital gains from qualifying shareholdings set up in QFC are also tax-exempt. 

The QFC regime also has other incentives like: 

• Unlimited carry-forward of tax losses; 
• 0 percent tax rate for eligible reinsurers, captive insurers, and investment managers (with conditions); 
• Exemption from withholding tax on outbound payments; 
• Access to Qatar’s double tax treaties; and 
• Group relief for companies with over 75 percent common ownership. 

Compliance and penalties

Every taxpayer conducting business in Qatar have to obtain a tax card from the GTA. This needs to be done within 30 days of initiating operations or registering with the Ministry of Commerce and Industry.  

If taxpayers fail to obtain or renew a tax card, they can attract a fine of QAR 20,000 (US$5,493.6). Even entities wholly owned by Qatari or GCC nationals have to register mandatorily, though these entities may not be liable for corporate income tax. 

Entities are also required to declare the nature and structure of their business through tax registration, which is especially important for establishing whether they constitute a Permanent Establishment (PE) in Qatar. 

The penalty structure in Qatar distinguishes between serious and non-serious violations. Common non-serious violations are late filing, late payment, and administrative oversights, which may be resolved through warnings and corrective actions within 30 business days.  

If not addressed, fines of up to QAR 300,000 (US$82,404) may be imposed, which can be doubled in case of repeat offences. In more severe cases, violations can even lead to the cancellation of tax registration. 

Other offences, like misreporting income, failure to comply with withholding tax rules, and breach of transfer pricing documentation requirements, are also penalized. Each of these carries financial and reputational risks for businesses operating in the country. 

Looking ahead

Qatar’s corporate tax system is created so as to encourage foreign investment and ensure compliance and revenue collection. Qatar is considered a relatively business-friendly tax environment due to low corporate tax rates, exemptions for certain sectors, and free zones.  

Whether operating under the general tax regime or through QFC, understanding the complete scope of tax obligations is critical for businesses seeking long-term success in Qatar’s growing economy. Companies can take advantage of tax and accounting experts to navigate Qatar’s tax structure. 

(US$ 1 = QAR 3.64) 

Read more: UAE Corporate Tax Filing 2025: Key Compliance Steps for Audit and Transfer Pricing Readiness 

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