Withholding Tax and Filing Requirements in Qatar

Withholding tax is the tax on income earned by a person who is not a resident of the State of Qatar, and it is paid by deduction of the source . 

 

Any natural or legal person who earns income from Qatar and are not a resident in the State of Qatar is subject to income tax through deduction at source. Withholding Tax is applicable to all the services that are used, utilized, or benefited in the State of Qatar even if they are carried out in whole or part outside the State. It applies to all the payments made for services, interest, royalties, technical fees, commission and brokerage fee. 

 

The Tax is deducted at the source are from the following parties  :

• Natural persons who carry out the activity in the State
• Legal persons residing in the State
• Ministries and other government agencies
• Public bodies and institutions
• Permanent establishments in the State belonging to non-residents

 

The applicable Tax rate for Withholding Tax is 5%.

 

All WHT Returns should be filed by the above parties and Tax should be paid online through Dhareeba Portal within one month of the date of payment made. Those who failed to submit the return before the deadline will be incurring a penalty of 100% of the Tax Amount.

 

For more details, contact us on: 3123 8818, 3094 7609