Personal income tax is nonexistent in Qatar. Corporate income
taxes are imposed only on international firms, based on Law No. (11)
of 1993 and applicable to profits exceeding QR 100,000
(US$ 27,472). The Law requires that liable foreign firms
should appoint an accredited auditing office to prepare the
firm's annual financial report, which shows among other things
the firm's net profits for each tax year. Income tax rates
rise from 5% to a maximum of 35% of net profits, depending
on amount of profit. Taxes are imposed progressively on bands
of income, as shown in the table below.
Qatar's corporate income tax law is applicable to foreign
firms, as well as foreign equity participation in Qatari business
concerns. While it is not customary for foreign equity participation
in a Qatari business concern to be in any way exempted from
the corporate income tax provisions, foreign firms operating
in Qatar may receive tax holidays or other exemptions. It may
be advisiable for a foreign firm to approach the Ministry of
Finance in advance.
