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Qatar is often described as tax free. For individuals that is close to true: there is no tax on salaries. For companies it is not. Most businesses deal with corporate income tax, many with withholding tax on payments abroad, and some with excise tax on particular goods.
The rules also depend on who owns the company. The share of profits belonging to Qatari and GCC owners is exempt from income tax, so two companies with the same profit can pay very different amounts, yet both must file a return.
This guide sets out each tax that applies to companies today, who pays it and how, and what does not exist in Qatar, with the official source for each point.
- Corporate income tax
- 10%
- Withholding tax
- 5%
- VAT
- No law in force
- Law checked
- 16 October 2026
The short answer
In short
- Corporate income tax is 10% of taxable income. The share of profits belonging to Qatari and GCC owners is exempt, but every company subject to the law files a return.
- Withholding tax of 5% applies to certain payments to foreign suppliers without a permanent establishment in Qatar.
- Excise tax applies only to businesses that import or produce particular goods, such as tobacco, energy drinks and sweetened drinks.
- There is no VAT law in force in Qatar, and no tax on salaries.
Is Qatar tax free? The taxes that apply today
| Tax | Who it applies to | Rate | Source |
|---|---|---|---|
| Corporate income tax | Companies and branches, on profits not belonging to Qatari or GCC owners | 10% (at least 35% for petroleum and petrochemical agreements) | Income Tax Law Art. 9 |
| Withholding tax | Payers in Qatar, on royalties, interest, commissions and service fees paid to non-residents without a permanent establishment | 5% of the gross amount | Income Tax Law Art. 9(2) |
| Capital gains | Gains on the sale of assets, including by non-residents | 10% (35% for petroleum-related assets) | GTA taxes page |
| Excise tax | Importers and producers of excise goods | 100% on tobacco, energy drinks and special purpose goods; per-litre amounts on sweetened drinks | Excise Tax Law No. 25 of 2018; GTA taxes page |
| Global minimum tax | Multinational groups with revenue of EUR 750 million or more | 15% minimum | GTA global minimum tax page |
| VAT | No one: no VAT law is in force | None | GTA laws page |
| Tax on salaries | No one: salaries are outside the Income Tax Law | None | Income Tax Law, Promulgation Art. 2 |
Corporate income tax: who pays and who only files
Corporate income tax is charged at 10% of taxable income (Income Tax Law Article 9). Companies in petroleum operations and petrochemical industries are taxed at the rate in their agreements, of not less than 35%.
Article 4 of the Law exempts the share of a resident company’s profits that belongs to Qatari nationals and to companies wholly owned by Qataris, and GCC nationals receive the same treatment.
In practice, a company wholly owned by Qatari or GCC nationals is generally exempt from the tax, but it still files a return each year. A company with a Qatari partner and a foreign partner pays 10% on the share of profits belonging to the foreign partner. A company wholly owned by foreign shareholders, like a branch of a foreign company, pays 10% on its whole taxable profit.
Every taxpayer files a return, even if its income is exempt (Article 11). The return is due within four months of the end of the tax year and is filed on the GTA’s Dhareeba portal. Our article on how to file a corporate income tax return covers the documents, steps and deadlines.
Companies registered in the Qatar Financial Centre are taxed under the QFC Tax Regulations, also at 10%, and file with the QFC Tax Department rather than the GTA.
Withholding tax on payments to foreign suppliers
When a company in Qatar pays royalties, interest, commissions or fees for services to a non-resident with no permanent establishment in Qatar, it deducts a final tax of 5% from the gross amount (Income Tax Law Article 9(2)). The payer, not the supplier, is responsible for deducting it and paying it to the GTA before the 16th day of the following month.
There is a single 5% rate. Guides that still quote 7% refer to a law repealed in 2018. Payments to suppliers with a GTA tax card or QFC registration are not subject to withholding. Our article on withholding tax in Qatar explains the scope, exclusions, filing and treaty relief.
Excise tax: which goods and how it is charged
Excise tax was introduced by Law No. 25 of 2018, in force from 1 January 2019, under the GCC excise agreement. It applies to particular goods, not to services or to businesses in general. Importers, producers and operators of tax warehouses of excise goods register with the GTA, and returns are filed quarterly on Dhareeba.
| Goods | Excise tax |
|---|---|
| Tobacco and tobacco products | 100% of the higher of the standard price or the retail price before tax |
| Energy drinks | 100% of the higher of the standard price or the retail price before tax |
| Special purpose goods | 100% of the higher of the standard price or the retail price before tax |
| Sweetened drinks with less than 5 g of sugar per 100 ml | Exempt |
| Sweetened drinks with 5 g to 7.99 g of sugar per 100 ml | QAR 0.77 per litre |
| Sweetened drinks with 8 g of sugar or more per 100 ml | QAR 1.06 per litre |
| Drinks sweetened only with artificial sweeteners | Exempt |
A business that does not import or produce these goods has no excise obligations. One that does should check its products against the current schedule before the goods arrive, as registration comes first. Our guide to excise tax in Qatar covers registration, returns and the 2026 changes in detail.
Is there VAT in Qatar?
No. Qatar has not introduced VAT. The GCC states signed a Unified VAT Agreement in 2015, which sets a common framework with a standard rate of 5% and leaves each state to pass its own law. Several GCC states have done so; Qatar has not. The GTA’s list of laws contains the GCC agreement but no Qatari VAT law, and no start date has been announced.
Some articles describe VAT as coming soon. Without a law or an official announcement, there is no date to plan around. The draft e-invoicing law approved by the Cabinet in May 2026 is a separate measure, and the official statement does not link it to VAT. See e-invoicing in Qatar.
What a company can sensibly do in the meantime is keep its invoicing, customer and supplier records clean and complete. That helps with corporate income tax and e-invoicing today, and would help with any future indirect tax.
No tax on salaries: what it does and does not mean
Article 2 of the law issuing the Income Tax Law places salaries, wages and allowances outside its scope, so employees do not pay income tax on their employment income or file personal returns for it.
That does not remove the employer’s obligations. A company still files its own return, deducts withholding tax on payments to foreign suppliers, notifies certain contracts to the GTA, and pays salaries through the Wage Protection System.
Tax checklist for a company in Qatar
- 1
Register and get a tax card
Register with the GTA within 60 days of the licence, commercial registration or first income, whichever comes first. See Dhareeba registration.
- 2
File every year, even if exempt
File the corporate income tax return within four months of the year end.
- 3
Check payments abroad every month
Deduct 5% withholding tax where it applies and pay it before the 16th of the following month.
- 4
Notify contracts
Notify the GTA of contracts with non-residents without a permanent establishment, whatever their value, and of larger contracts with residents, within 30 days (Income Tax Law Article 13).
- 5
Check excise before importing
If you import or produce drinks, tobacco or similar goods, check the excise schedule and register before the goods arrive.
- 6
Keep records for 10 years
Books, records and supporting documents are kept for 10 years after the year they relate to. See bookkeeping for SMEs.
- 7
Diary the deadlines
Use our compliance calendar for the year’s tax and company law dates.
Penalties in brief
Penalties are set by Article 24 of the Income Tax Law. A late return costs QAR 500 a day up to QAR 180,000, late payment adds 2% of the tax for each month or part of a month, and breaching the registration rules carries a QAR 20,000 penalty. Our tax return guide sets out the full table.
What to do next
Start with your ownership structure, which decides how much income tax the company pays, and your payments to foreign suppliers, which decide whether withholding tax applies.
Our tax advisory and health check reviews how Qatar’s taxes apply to your business, and our tax services cover returns, withholding tax and registration. To discuss your position, request a proposal.
Frequently asked questions
Is there VAT in Qatar?
No. Qatar has not introduced VAT. The General Tax Authority lists the 2015 GCC VAT Agreement, but no Qatari VAT law, and no start date has been announced.
Is Qatar tax free?
Not for companies. Corporate income tax of 10% applies to profits that do not belong to Qatari or GCC owners, withholding tax of 5% applies to certain payments abroad, and excise tax applies to particular goods. Salaries are not taxed.
What is the corporate tax rate in Qatar?
The standard rate is 10% of taxable income. Petroleum operations and petrochemical industries are taxed at the rate in their agreements, of not less than 35%.
Does Qatar have tax brackets?
No. Corporate income tax is a flat 10% of taxable income, with no brackets by size of profit; petroleum and petrochemical agreements carry at least 35%. Salaries are not taxed, so there are no personal income tax brackets either.
Do Qatari-owned companies pay income tax?
The share of profits belonging to Qatari and GCC owners is exempt, so a company wholly owned by them generally pays no income tax. It must still file a return each year (Income Tax Law Article 11).
Is there income tax on salaries in Qatar?
No. Salaries, wages and allowances are outside the scope of the Income Tax Law, so employees do not pay tax on their employment income.
Which goods are subject to excise tax in Qatar?
Tobacco and tobacco products, energy drinks and special purpose goods at 100%, and, from July 2026, sweetened drinks according to their sugar content, at QAR 0.77 or QAR 1.06 per litre.
Does every company need to register with the GTA?
Yes. A business carrying on activity in Qatar registers with the General Tax Authority within 60 days and receives a tax card, even if its income is exempt.
Sources
Laws and the General Tax Authority
This article is general information, not tax advice for your company. The laws and General Tax Authority pages cited were checked on 16 October 2026. Excise schedules and tax rules can change; check the current GTA guidance before relying on any rate.