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The Income Tax Law of Qatar, Law No. 11/1993 became effective as of January 1, 1993. It imposes income tax on the taxpayer (natural persons and corporate bodies) arising from activities in Qatar, including profits from any contract executed in Qatar, profits realized from the sale of any asset of an establishment, agency commissions, regardless of whether the contract with respect to which a commission is due is executed inside or outside of Qatar, consultation fees, amounts from the sale, rent or concession of intellectual property rights, bad debts which are collected by the taxpayer and net profits upon dissolution of a company.
Taxable income is determined after allowable deductions are made for interest payments, rentals, salaries and bonuses, taxes and fees (other than income tax), depreciation, losses from the sale of assets and humanitarian or scientific donations.
Revenues relating to projects in Qatar, even if executed outside of Qatar, are declared for Qatari tax purposes. Evidence that the work was implemented outside of Qatar is necessary to avoid tax liability with respect to the profits of the project.
Salaries, wages, personal bank interest and other forms of personal income are not subject to tax.
Tax is calculated on a progressive scale rising to a maximum rate of 35 percent on taxable income above QR 5 million. The tax rates are as follows:
| Amount Of Income | Tax Rate |
|---|
| Less than QR 100,000 | exempt | | QR 100,001 to QR 500,000 | 10% | | QR 500,001 to QR 1,000,000 | 15% | | QR 1,000,001 to QR 1,500,000 | 20% | | QR 1,500,001 to QR 2,500,000 | 25% | | QR 2,500,001 to QR 5,000,000 | 30% | | QR 5,000,001 and above | 35% |
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