Photo: Pile of Euro Notes (5856649637) by Images Money. Photo and cropped/resized versions: CC BY 2.0.
When a company in Qatar pays a foreign supplier for services, royalties, interest or commissions, it may have to deduct tax from the payment and pay it to the General Tax Authority (GTA). This is withholding tax, and the duty falls on the payer, not the supplier.
The rules are short, but they are often misstated. Several guides still quote a 7% rate, which belongs to a law repealed in 2018, or say that services carried out abroad are always outside the scope.
This guide follows the Income Tax Law, its Executive Regulations and the GTA’s withholding tax guide of February 2026, with the article behind each rule.
- Rate
- 5% of the gross amount
- Paid by
- The payer in Qatar
- Deadline
- Before the 16th of next month
- Law checked
- 16 October 2026
The short answer
In short
- A final tax of 5% applies to the gross amount of royalties, interest, commissions and fees for services performed wholly or partly in Qatar, paid to non-residents with no permanent establishment in Qatar (Income Tax Law Article 9(2)).
- There is one rate. The 7% rate quoted in some guides came from the repealed Law No. 21 of 2009.
- The payer deducts the tax and pays it through Dhareeba before the 16th day of the month after the month of withholding (Executive Regulations Article 24).
- Failing to withhold costs a penalty equal to the tax not withheld, on top of the tax itself.
Which payments are subject to withholding tax
| Payment | Treatment | Source |
|---|---|---|
| Royalties | 5% of the gross amount | Law Art. 9(2) |
| Interest, except the excluded types below | 5% of the gross amount | Law Art. 9(2) |
| Commissions | 5% of the gross amount | Law Art. 9(2) |
| Fees for services performed wholly or partly in Qatar | 5% of the gross amount, with no deduction for costs | Law Art. 9(2); Regulations Art. 21(2) |
| Dividends | Not in the list, so no withholding under domestic law | Law Art. 9(2) |
| Supplier holds a GTA tax card or is registered with the QFC | No withholding | Regulations Art. 23 |
Royalties include payments for the use of copyright, patents, trademarks, designs, formulas, equipment and know-how. Technical fees cover any service of an administrative, technical or consultancy nature. Interest includes Islamic finance instruments similar to a loan (Law Article 1).
Payments to non-resident companies owned wholly or partly by Qatari or GCC nationals are still subject to withholding (Regulations Article 22(3)).
When a service counts as performed in Qatar
Article 21(2) of the Executive Regulations treats a service as performed in Qatar if any work needed to complete it is done in Qatar, such as collecting data or inspecting a site, even if that work is done by another person. Delivering the finished service in Qatar is not by itself treated as part of completing it.
The same article adds a wider rule: services are also considered performed in Qatar if they are used, consumed or benefited from in Qatar, even when they are carried out wholly or partly abroad. The GTA’s February 2026 guide repeats this. A service delivered entirely from abroad can therefore still be in scope, so each contract should be reviewed rather than assumed to be outside it.
Payments you do not withhold on
The most common exclusion concerns suppliers with a GTA tax card or QFC registration. Payments to persons issued a GTA tax card, or registered with the Qatar Financial Centre, including a Qatar branch of a foreign company, are not subject to withholding (Regulations Article 23), so keep a copy of the supplier’s tax card. Certain activities are also outside the rules: reinsurance, shipping and ticket sales, and the sea transport of oil, oil derivatives and related products are not treated as services for withholding purposes (Regulations Article 21(3)).
Some interest is excluded as well. This covers interest on deposits with banks and financial institutions in Qatar, on bonds of the State and state bodies, on transactions and loans with banks and financial institutions, and interest paid by a Qatar branch to its head office (Regulations Article 21(4)). Interest on shareholder or group loans, however, is not excluded. Finally, the administrative and general expenses of a head office that are allowed under Regulations Article 7 are not subject to withholding (Article 21(1)).
Who deducts, and the monthly deadline
The duty to withhold falls on the payer. Under Article 21(1) of the Executive Regulations, payers include individuals carrying on an activity in Qatar, resident companies, ministries and government bodies, public institutions and Qatar branches of foreign companies.
The tax must be paid to the GTA, with the GTA’s statement, before the 16th day of the month following the month in which it was withheld. The payer gives the supplier a withholding certificate (Article 24). In practice, the last day is the 15th.
Withholding cannot be delayed by leaving an invoice unpaid. An amount not yet paid is treated as paid no later than 12 months after it became due, and the tax falls due then (Article 21(1)).
Contracts with non-residents that have no permanent establishment in Qatar must also be notified to the GTA, whatever their value (Law Article 13). Since November 2025, the withholding tax form asks for the contract notification reference number, so the contract should be notified before the first statement.
Filing the withholding tax statement on Dhareeba
The steps below follow the GTA’s withholding tax statement service, last updated on 18 May 2026.
- 1
Log in
Sign in to dhareeba.gov.qa through the National Authentication System.
- 2
Open the statement
Under the returns and statements menu, create a new withholding tax statement.
- 3
Choose the period and type
Select the transaction type and the tax period.
- 4
Enter the transactions
Add each payment, or upload the GTA’s Excel template, and select the contract notification reference number.
- 5
Review the summary
Check the totals, add any attachments and include any penalty due in the payment if applicable.
- 6
Declare, pay and submit
Confirm the declaration and pay. Dhareeba issues an acknowledgement and the withholding certificate.
A worked example
A Qatar company pays a consulting firm abroad, which has no permanent establishment or tax card in Qatar, QAR 1,000,000 for a study used by the company in Qatar. The company withholds 5%, or QAR 50,000, pays the consultant QAR 950,000 unless the contract says otherwise, and pays the QAR 50,000 to the GTA before the 16th of the following month.
If the company forgets to withhold, it owes the QAR 50,000 tax plus a penalty of QAR 50,000. If it withholds but pays late, the penalty is 2% of the tax for each month or part of a month, up to the amount of the tax.
Penalties for not deducting or paying late
| Breach | Penalty | Source |
|---|---|---|
| Failing to withhold | A penalty equal to the tax not withheld, in addition to the tax itself | Law Art. 24(7) |
| Paying withheld tax late | 2% of the tax for each month or part of a month, up to the amount of the tax | Law Art. 24(2) |
| Not notifying a contract | QAR 10,000 | Law Art. 24(6) |
| Repeat within five years | Penalty doubled | Law Art. 29 |
Treaty relief: refunds and the 2026 trusted entity route
Withholding applies subject to Qatar’s tax treaties. For most payers, the rule is to withhold 5% and let the supplier claim a refund of any excess allowed by the treaty (Regulations Article 22). The claim is made through Dhareeba, and unregistered non-residents can also apply.
Article 47 of the Regulations lists the documents, including a tax residency certificate from the supplier’s country for the year of withholding, the withholding certificates, the contract, details of shareholders and beneficial owners, and the treaty provisions relied on. The GTA decides within 60 days; no reply means the claim is refused. The treaty must be in force at the time of the request.
Since 24 March 2026, the GTA has allowed approved trusted entities to apply treaty rates at the time of payment. Only ministries and government bodies, public institutions, financial institutions and companies listed on the Qatar Stock Exchange can apply, so most private companies still use the refund route.
What to do next
List your payments to foreign suppliers, check which suppliers hold a GTA tax card, notify new contracts, and set a monthly reminder for the 15th. Our article on bookkeeping for SMEs includes withholding tax in a monthly routine.
Our withholding tax service reviews your contracts and payments and prepares your monthly statements. To discuss your position, request a proposal.
Frequently asked questions
What is the withholding tax rate in Qatar?
A single rate of 5% of the gross amount, on royalties, interest, commissions and service fees paid to non-residents without a permanent establishment in Qatar (Income Tax Law Article 9(2)). The 7% rate was in the repealed 2009 law.
When must withholding tax be paid in Qatar?
Before the 16th day of the month following the month in which the tax was withheld, through Dhareeba, with a withholding certificate given to the supplier (Executive Regulations Article 24).
Do we still owe withholding tax if the invoice is unpaid?
Yes, once 12 months have passed from the date the amount became due. The amount is then treated as paid and the tax falls due (Executive Regulations Article 21(1)).
Does withholding tax apply to services carried out abroad?
It can. Services used, consumed or benefited from in Qatar are treated as performed in Qatar even if the work is done abroad (Executive Regulations Article 21(2)). Review each contract.
Do we withhold tax from a foreign company with a Qatar tax card?
No. Payments to persons issued a GTA tax card, or registered with the QFC, are not subject to withholding (Executive Regulations Article 23). Keep a copy of the tax card.
Can we deduct a lower treaty rate?
Usually not at the time of payment. Withhold 5%, and the supplier claims a refund with a tax residency certificate and the other documents in Article 47. Only approved trusted entities, such as government bodies, financial institutions and listed companies, can apply treaty rates at source.
Are dividends subject to withholding tax in Qatar?
Dividends are not among the payments listed in Article 9(2) of the Income Tax Law, so no withholding applies to them under domestic law.
Sources
Law and guidance
GTA announcements and Dhareeba services
This article is general information, not tax advice for your situation. The law, regulations and GTA guidance cited were checked on 16 October 2026. Tax treaties can change the final tax; check the treaty text and the GTA’s current rules before you rely on them.