Photo: Hamad_International_Airport_Doha_Qatar_4 by Arne Müseler. Photo and cropped/resized versions: CC BY-SA 3.0 de.
Many foreign companies first come to Qatar through a branch, often to carry out a government contract. Once it is registered, the head office faces yearly duties that differ from those at home: a Qatari tax return, accounts audited in Qatar, withholding tax and rules on head office charges. Older guides still describe a 3% limit on those charges; it was replaced in 2023.
This guide is written from the head office’s point of view: how a branch is taxed and audited, how head office charges are treated, and how to close it, with the article behind each rule.
- Tax rate
- 10% of taxable income
- Tax registration
- Within 60 days
- Audited accounts
- Every year
- Law checked
- 16 October 2026
The short answer
In short
- A branch is not a separate company. The foreign company is taxed in Qatar at 10% on the profit attributable to its branch, its permanent establishment (Executive Regulations Article 7; Income Tax Law Article 9).
- The branch registers with the General Tax Authority (GTA) within 60 days and files a return within four months of the year end. Because its main office is abroad, the return always carries accounts audited by an auditor registered in Qatar (Regulations Article 33).
- Since 2023 the branch deducts the real expenses of its activity, including head office administrative costs, but not royalties, fees, commissions or interest paid to head office, except for banks (Regulations Article 7(3)).
- The branch withholds 5% on certain payments to non-residents, but not on head office expenses or interest (Regulations Article 21). Our page on foreign company branches explains how we help.
What a branch is in Qatar, and when one can be opened
A branch is part of the foreign company, not a new legal person. In tax terms it is a permanent establishment: a fixed place of business through which the company carries on its activity wholly or partly (Income Tax Law Article 1).
The main route is set by Law No. 1 of 2019 on non-Qatari investment. Under its Article 5, a non-Qatari company carrying out a works contract with a ministry, government body, public authority or a company in which the State has a stake does so through its branch, which is registered and licensed after the award and before signing, and renewed for the term of the contract. Banks, insurance companies and commercial agencies, on the other hand, are closed to non-Qatari investors unless the Cabinet decides otherwise (Article 4). In other cases, check the route for your activity with the Ministry of Commerce and Industry (MOCI).
To compare a branch with other structures, see LLC, branch, QFC or free zone.
How the branch is taxed: the permanent establishment rules
Qatar taxes only the profit attributable to the branch, plus sales and activities in Qatar of the same or a similar type as the branch’s (Executive Regulations Article 7(1)). That profit is measured as if the branch were a separate enterprise dealing independently with its own head office (Article 7(2)), and the method stays the same from year to year (Article 7(4)).
The rate is 10% of taxable income (Income Tax Law Article 9), and the tax year is the calendar year unless the GTA approves a different accounting period (Law Article 5). The branch registers with the GTA and applies for a tax card within 60 days of the approval to start, the commercial registration or the first income, whichever comes first (Regulations Article 25(1)); see Dhareeba registration and the tax card.
The return is then due within four months of the year end. If more time is needed, an extension of up to four months can be requested 60 days before the deadline (Regulations Articles 29 and 30). See how to file a corporate income tax return.
QFC and free zone branches follow their own rules; see QFC and free zone companies.
Audited accounts every year, whatever the size
Other companies attach audited accounts to the return only above a size test: capital over QAR 200,000 or income over QAR 500,000. Executive Regulations Article 33 also requires them whenever the main office is outside Qatar, so every branch attaches them every year.
The auditor must be registered in Qatar, because only auditors entered in MOCI’s register may practise auditing (Law No. 8 of 2020, Articles 2 and 3). The audit covers the final accounts, prepared under IFRS-type standards, with the auditor’s report (Regulations Article 34), and the auditor cannot be the person who prepared them (Article 34(4)). A group auditor abroad does not replace the Qatar audit, though it can rely on that work for group reporting.
Records are kept at the place of business in Qatar for 10 years. Bookkeeping may be contracted out, but the branch stays responsible for it (Regulations Articles 35 and 36).
See is an audit mandatory in Qatar, the audit preparation checklist and our external audit page.
Head office charges after the 2023 change
The Income Tax Law disallows the branch’s share of head office general and administrative expenses above “the rate specified by the Regulation” (Article 8(7)). Until 2023 the original Regulations set that rate at 1% of the branch’s gross income for banks and insurers and 3% for others, after certain exclusions (Executive Regulations 2019, Article 7(1)).
Cabinet Decision No. 3 of 2023 replaced that rule. The amended Article 7(3) sets no percentage; it allows real expenses and excludes four kinds of payment to head office:
| Payment | Deductible for the branch? | Withholding tax? | Source |
|---|---|---|---|
| Share of executive and general administrative expenses, wherever incurred | Yes, as real expenses of the branch’s activity | No | Regs Art. 7(3); Art. 21(1) |
| Actual reimbursement of costs | Yes | Confirm with your tax adviser | Regs Art. 7(3) |
| Royalties or fees for patents and other rights | No, except for banks | Confirm with your tax adviser | Regs Art. 7(3) |
| Commissions for specific services or management | No, except for banks | Confirm with your tax adviser | Regs Art. 7(3) |
| Interest on funds lent by head office | No, except for banks | No | Regs Art. 7(3); Art. 21(4)(d) |
“Real expenses” does not mean “fully deductible”: each cost must be incurred for the branch’s activity and documented, so keep the agreements, allocation keys and invoices. The law still refers to a rate the Regulation no longer sets; how the GTA reads “actual reimbursement” and treats years straddling the change should be confirmed with your tax adviser. Our transfer pricing service covers branch and head office documentation.
Withholding tax and contract notification
A branch is a payer for withholding tax. It withholds 5% on royalties, interest, commissions and service fees paid to non-residents, and pays the tax by the 15th of the following month (Income Tax Law Article 9(2); Regulations Articles 21 and 24).
The branch does not withhold on head office administrative and general expenses under Article 7 (Article 21(1)), or on interest paid to its head office or an affiliate abroad (Article 21(4)(d)). Tax is not withheld from the branch either. Payments to a GTA tax card holder, in particular a non-resident’s permanent establishment in Qatar, are outside withholding (Regulations Article 23), so customers should see the branch’s tax card.
Contract notification is a separate duty. Contracts with non-residents without a permanent establishment, of any value, and with residents or permanent establishments of at least QAR 200,000 for services or QAR 500,000 for construction and supply, are notified to the GTA within 30 days (Law Article 13; Regulations Article 37). Failing to notify carries a QAR 10,000 penalty (Law Article 24(6)). Whether the branch must notify its own contracts should be checked with the GTA.
See withholding tax in Qatar and contract notification and tax clearance. Our withholding tax service helps you prepare the monthly statements.
Transfer pricing and moving profits to head office
As a permanent establishment, a branch is within the transfer pricing thresholds of GTA President’s Resolution No. 4 of 2020. A branch with turnover or total assets of QAR 10 million or more files a transfer pricing declaration with its tax return. Where turnover or total assets are QAR 50 million or more and a group entity is outside Qatar, as the head office always is, a master file and local file are also due by 30 June of the following year.
See transfer pricing rules in Qatar. Law No. 1 of 2019 lets a non-Qatari investor transfer investment returns abroad freely and without delay, in any convertible currency (Article 14). Whether any tax applies when branch profits are paid to head office should be confirmed with your tax adviser. Large groups should also check the Pillar Two rules in Qatar.
The branch’s year: a calendar
| When | What | Source |
|---|---|---|
| By the 15th of each month | Pay and report withholding tax for the previous month | Law Art. 9(2); Regs Art. 24 |
| Within 30 days of each qualifying contract | Notify the contract to the GTA | Law Art. 13; Regs Art. 37 |
| 30 April | Tax return with audited accounts and, at QAR 10 million or more, the transfer pricing declaration | Regs Art. 29; Resolution 4/2020 |
| 30 June | Master file and local file, where in scope | Resolution 4/2020 Art. 8 |
| For the term of the contract | Renew the commercial registration and licences | Law No. 1 of 2019 Art. 5 |
For all dates in the coming year, see the Qatar compliance calendar 2027.
Closing the branch
The duty to file continues until the GTA is told the branch has ceased (Regulations Article 29(8)). A typical order is:
- 1
Notify cessation
Tell the GTA on its form within 30 days of ceasing or disposing of the activity, unless the final return is filed within that period (Regulations Article 28).
- 2
Final return and accounts
Prepare the final return with audited accounts for the period up to cessation.
- 3
Settle open items
Pay withholding tax, tax and any penalties still due.
- 4
Tax clearance
Request the no-objection certificate on Dhareeba; it needs all returns filed and dues paid.
- 5
Cancel the commercial registration
Apply to MOCI with the tax clearance.
- 6
Cancel the tax registration
Apply on Dhareeba with the cancelled commercial registration and the clearance certificate.
See how to liquidate a company in Qatar and our company liquidation service.
What the head office should prepare: a checklist
Checklist
- A written agreement for every charge from head office to the branch
- The allocation method for shared costs, with the figures behind it
- A group reporting timetable that allows the branch to file by 30 April
- Access for the Qatar auditor to people and records
- A list of non-resident suppliers paid by the branch, for withholding tax
- A register of contracts for notification to the GTA
- Transfer pricing data if turnover or total assets reach QAR 10 million
Our IFRS advisory and bookkeeping services help a branch with its records and accounts. A firm that keeps the books or advises the branch cannot also audit it (Law No. 8 of 2020, Article 27; Regulations Article 34(4)).
What to do next
List the branch’s year end and its payments to head office and suppliers abroad, then check each against the rules above. Our page on foreign company branches explains how we help a branch, and our corporate income tax return service helps you prepare the yearly filing. To discuss your branch, request a proposal.
Frequently asked questions
Does a branch pay tax on all of the foreign company’s profit?
No. Qatar taxes only the profit attributable to the branch, plus sales and activities in Qatar of the same or a similar type, at 10% (Executive Regulations Article 7(1); Income Tax Law Article 9). The branch is treated as a separate enterprise dealing independently with its head office.
Is the 3% limit on head office expenses still in force?
No. Cabinet Decision No. 3 of 2023 replaced it. Real expenses of the branch’s activity, including head office administrative costs, are deductible; royalties, fees, commissions and interest paid to head office are not, except for banks (Executive Regulations Article 7(3)).
Must a small branch have its accounts audited?
Yes. Audited accounts must go with the tax return whenever the main office is outside Qatar, whatever the branch’s capital or income (Executive Regulations Article 33). The auditor must be registered in Qatar (Law No. 8 of 2020, Article 3).
Does the branch withhold tax on interest paid to head office?
No. Interest paid by a permanent establishment in Qatar to its head office or an affiliate abroad is outside withholding tax (Executive Regulations Article 21(4)(d)). The interest is also not deductible unless the branch is a bank (Article 7(3)).
Do our Qatari customers withhold 5% from payments to the branch?
Not if the branch holds a GTA tax card. Payments to a tax card holder, in particular a non-resident’s permanent establishment in Qatar, are not subject to withholding tax (Executive Regulations Article 23).
When must the branch register with the General Tax Authority?
Within 60 days of the approval to start, the commercial registration or the first income, whichever comes first (Executive Regulations Article 25(1)). The duty applies even before the branch earns any income.
What must happen before a branch can close?
Notify the GTA of cessation within 30 days (Executive Regulations Article 28), file the final return with audited accounts, settle what is due, obtain the tax clearance certificate on Dhareeba, cancel the commercial registration and then cancel the tax registration.
Sources
Laws and regulations
- Income Tax Law and Executive Regulations, 2024 edition (General Tax Authority)
- Cabinet Decision No. 39 of 2019, original Executive Regulations (General Tax Authority)
- Resolution of the GTA President No. 4 of 2020 on transfer pricing (General Tax Authority)
- Law No. 1 of 2019 on Non-Qatari Capital Investment (Al Meezan)
- Law No. 8 of 2020 on the Auditing Profession (Al Meezan)
General Tax Authority services
This article is general information, not tax or legal advice for your branch. The laws and regulations cited were checked on 16 October 2026; English descriptions of Arabic legal texts are our own. Tax treaties can change the position for a branch: check the treaty between Qatar and the head office’s country.