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Contractors, subcontractors and suppliers in Qatar meet the General Tax Authority (GTA) twice on most projects: when the contract is signed, because many contracts must be notified, and at the end, when the client asks for proof that the tax position is clear before releasing the last payment.
The first rule is in the Income Tax Law (Law No. 24 of 2018) and its Executive Regulations. The second is a mix of a Dhareeba service and an older Ministry circular, and is often described inaccurately.
This guide explains both steps, how notification links to withholding tax, and what the current texts say about holding back final payments.
- Deadline
- 30 days
- Services threshold
- QAR 200,000
- Penalty
- QAR 10,000
- Law checked
- 16 October 2026
The short answer
In short
- Notify the GTA of every contract with a non-resident that has no permanent establishment in Qatar, whatever its value, and of contracts with others from QAR 200,000 for services or QAR 500,000 for construction and supply (Income Tax Law Article 13; Executive Regulations Article 37).
- The deadline is 30 days from concluding the contract, or from the GTA’s request. Failing to notify carries a QAR 10,000 penalty (Law Article 24(6)).
- A tax clearance certificate (non-objection certificate, NOC) is requested on Dhareeba and needs all tax returns filed and all dues paid.
- The “3%” hold-back on final payments is not in the current law. It comes from a 2011 Ministry circular aimed at project branches; under the same circular, resident companies receive the last payment on a valid tax card.
For the other taxes a company in Qatar pays, see taxes in Qatar for companies.
Which contracts must be notified
Government entities, companies, private associations and institutions, sole proprietorships and other entities named in the Regulations must notify the GTA of the contracts, agreements and deals they enter into (Income Tax Law Article 13). Government bodies are outside the income tax itself, but the law keeps their duties to notify contracts and to withhold tax. Whether a contract must be notified depends on the other party and the value.
| Other party | Type of contract | Notify when | Source |
|---|---|---|---|
| Non-resident with no permanent establishment in Qatar | Any | Whatever the value | Regs Art. 37(1)(a) |
| Resident, or non-resident with a permanent establishment in Qatar | Services | Value of QAR 200,000 or more | Regs Art. 37(1)(b) |
| Resident, or non-resident with a permanent establishment in Qatar | Construction (contracting) and supply | Value of QAR 500,000 or more | Regs Art. 37(1)(b) |
A permanent establishment is a fixed place of business through which a foreign company carries on its activity in Qatar, such as a registered branch. Our page on foreign company branches explains how branches are treated. Contractors and subcontractors in the energy sector meet these rules often; see oil and gas.
The 30-day deadline, the form and the penalty
The notification is due within 30 days from the date the contract or agreement is concluded, or from the date of the GTA’s request, and the GTA may extend this by a further 30 days if necessary (Executive Regulations Article 37). The clock does not start from the commencement date.
It is made on the GTA’s form and covers the contracting parties, the nature of the work, the duration, the value and the other party’s country of residence. The GTA may also ask for a copy of the contract (Article 37(2)). Not notifying a contract carries a penalty of QAR 10,000, except for government entities (Income Tax Law Article 24(6)), and the penalty is doubled for a similar breach within five years (Article 29).
Do not confuse this with the QAR 20,000 penalty for breaching the registration and notification provisions in Article 24(3); the contract notification penalty is the separate QAR 10,000 in Article 24(6).
How to submit a contract declaration on Dhareeba
There is no separate service page for contract declaration in the Dhareeba catalogue; the GTA’s user manual “Taxpayer Contract Declaration” is the official guide. Based on that manual, the steps for a registered taxpayer are:
- 1
Log in
Sign in to Dhareeba through the National Authentication System and select the tax identification number (TIN).
- 2
Open the service
Go to the Declarations tab, choose the Contract Declaration tile and select Create Contract.
- 3
Choose your role
Read the instructions and choose “Goods and Service Receiver (Payer)” or “Goods and Service Provider (Payee)”.
- 4
Enter the contract
One contract per declaration. Give the contract details; for an open contract the end date is optional. An amendment can be linked to a contract already declared. Upload the contract reference attachment.
- 5
Add the parties
Enter the other party’s details; more than one party can be added. Complete the additional information.
- 6
Submit
Check the summary, accept the declaration and submit. Keep the acknowledgement; past declarations appear under “View Contract”.
A payer or payee that is not registered uses “Other Services” and the same Contract Declaration tile; submitting the declaration registers it and generates a TIN. Late declarations lead to a “Late Declaration Penalty Invoice Letter” sent through My Notifications, SMS and email. The manual dates from 2020, so screens may differ. For logging in and the tax card, see Dhareeba registration and the tax card.
How notification connects to withholding tax and your tax return
Notification now feeds directly into withholding tax. Since 26 November 2025 the withholding tax statement asks for the contract notification reference number, so a contract with a non-resident must be notified before the first withholding statement. It also helps to ask suppliers for a copy of their tax card and keep it on file, because no tax is withheld on payments to persons holding a GTA tax card or registered with the QFC (Executive Regulations Article 23).
The same contracts appear again in the year-end file. Where audited accounts are required, they go with a schedule of subcontractors and a schedule of tax withheld at source (Article 34(2)). Long-term contracts are taxed by the percentage of work completed (Article 4(3)).
Income from contracts carried out wholly or partly in Qatar is income realised in Qatar (Income Tax Law Article 3(2)). For the withholding rate, deadline and penalties, see withholding tax in Qatar; for the yearly return, see how to file a corporate income tax return.
Tax clearance: what the NOC is and how to get one
The Dhareeba service “Request for a Non-Objection Certificate (NOC) – Tax Clearance” lets a registered taxpayer obtain a certificate for cancelling the commercial register, disbursing dues or discharging liabilities. It requires all tax returns to have been submitted and all outstanding amounts paid, with the request type chosen and supporting documents attached. The steps are:
- 1
Open the request
Log in to Dhareeba, choose the “Requests” tile, then “Request for Non-Objection Certificate (NOC)” and “Tax Clearance”.
- 2
Complete the form
Read the instructions, fill in the fields, attach the documents and add any further information.
- 3
Submit and follow up
Check the summary, accept the declaration, submit, and watch your notifications for the result.
The GTA’s 2020 user guide states that the system checks for unpaid amounts and open filings when the request is created, and that a copy of the contract or invoice is mandatory. Confirm current practice before relying on it. The service page shows no processing time or fee.
In June 2025 the GTA extended the validity of the NOC for cancelling a commercial registration and of the Disbursement of Dues Certificate to 90 days, and made the Tax Compliance Certificate valid for one year. Closing a company uses the same certificate; see how to liquidate a company in Qatar and our company liquidation service.
Final payments held until clearance: where the “3%” rule comes from
Many contractors are told that the client must keep 3% of the contract value until they produce a tax clearance. The current Income Tax Law and its Executive Regulations contain no such rule: they have no provision on retaining a final payment or a percentage of contract value.
The rule comes from Ministry of Economy and Finance Circular No. 2 of 2011, issued under the repealed Law No. 21 of 2009 and attached to GTA President Circular No. 5 of 2021. It targets a branch of a foreign company that is not a permanent establishment and whose commercial registration limits it to a specific project of more than one year. For such a branch, the circular holds back “the last payment of the contract or 3% of its value”, whichever is greater, after excluding supplies and work done abroad, until it presents an NOC.
Resident companies receive the last payment on a valid tax card under the same circular, so an NOC is not required. Branches that are permanent establishments, with a fixed address and an activity not tied to one project, are treated the same way, and QFC-registered taxpayers are paid on a valid QFC registration certificate (Circular No. 3 of 2011).
Whether the rule still applies today is less clear. The GTA still offers a “disbursement of dues” NOC, which suggests the practice continues, but whether the circular binds every payer under the current law should be confirmed with the GTA or a lawyer.
In practice, read the payment and tax clauses of each contract, ask the client in writing what it needs to release the last payment, keep your tax card valid and file returns on time so that a clearance request is not blocked. Contractual retention, the amount a client holds under the contract until handover or the end of the defects period, is a separate matter; see construction and contracting.
Checklist for contractors and subcontractors
Checklist
- List every contract and subcontract signed this year.
- Mark the other party’s residence and whether it has a permanent establishment in Qatar.
- Apply the thresholds and declare each contract within 30 days; keep the acknowledgement.
- Record the notification reference number for withholding tax statements.
- Keep suppliers’ tax cards on file, and keep your own valid; our Dhareeba and tax card service can help.
- Keep returns and payments up to date so a clearance request is not blocked.
- Before the final invoice, ask the client what it needs: a tax card or an NOC.
- Keep the subcontractor schedule ready for the year-end accounts, and check the dates in the Qatar compliance calendar 2027.
What to do next
Start with a list of this year’s contracts and the status of each declaration. Our tax advisory service reviews the tax clauses of your contracts, and our withholding tax service helps you prepare declarations and statements. Our construction and contracting page covers the wider accounting picture.
To discuss your contracts, request a proposal.
Frequently asked questions
Is contract notification the same as a tax declaration?
No. Contract notification tells the GTA about a contract within 30 days of concluding it; the tax return, or yearly tax declaration, reports the income after the year end. Both are part of a company’s tax reporting through Dhareeba.
Which contracts must be notified to the GTA in Qatar?
All contracts with non-residents that have no permanent establishment in Qatar, whatever the value, and contracts with residents or permanent establishments from QAR 200,000 for services and QAR 500,000 for construction and supply (Executive Regulations Article 37(1)).
What is the deadline for contract notification?
30 days from the date the contract is concluded, or from the date of the GTA’s request. The GTA may extend the period by a further 30 days if necessary (Executive Regulations Article 37).
What is the penalty for not notifying a contract?
QAR 10,000, doubled for a similar breach within five years. Government entities are excluded from this penalty, although they must still notify their contracts (Income Tax Law Articles 24(6) and 29).
Does the subcontractor or the main contractor notify the contract?
The duty falls on each entity that enters into the contract (Income Tax Law Article 13), and the GTA’s manual lets either the payer or the payee declare. Until the GTA confirms its practice, both parties should keep proof of a declaration.
What is a tax clearance certificate (NOC) in Qatar?
A non-objection certificate requested on Dhareeba, used to cancel a commercial registration, release dues or discharge liabilities. It requires all tax returns to be filed and all outstanding amounts to be paid.
Is 3% of the contract value retained until tax clearance?
Not under the current Income Tax Law or Regulations. A 2011 Ministry circular holds back the last payment or 3%, whichever is greater, from project branches until they present an NOC; resident companies are paid on a valid tax card. Confirm the client’s requirement in writing.
How long is a tax clearance NOC valid?
In June 2025 the GTA extended the validity of the NOC for cancelling a commercial registration and of the Disbursement of Dues Certificate to 90 days. The Tax Compliance Certificate is valid for one year.
Sources
Laws, regulations and circulars
General Tax Authority services, guides and news
This article is general information, not tax or legal advice for your company. The laws, regulations, circulars and services cited were checked on 16 October 2026; English descriptions of Arabic texts are our own. Dhareeba screens are based on GTA user guides and may change: check the live service before you submit.