Qatar corporate tax - guide for international expansion

Are you considering expanding your business operations to Qatar? Understanding the corporate tax landscape is crucial for making informed decisions about this strategic Gulf nation.

Qatar offers a unique business environment in the Middle East, with its robust economy driven by natural gas and oil revenues, strategic location, and business-friendly policies. Whether you're exploring market entry, setting up operations, or planning international expansion, grasping Qatar's corporate tax framework will help you navigate this opportunity effectively.

For businesses looking to establish operations in Qatar, having the right financial infrastructure is essential. Wise Business can help streamline your international payments and provide local account details to support your expansion into this dynamic market.

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This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Qatar Corporate Tax Rate in 2025

The standard corporate income tax rate in Qatar is 10% for most businesses, making it one of the more competitive tax jurisdictions in the Gulf region. This rate applies to the net profits of companies operating in Qatar, whether they are Qatari or foreign-owned entities.¹

Qatar's corporate tax system is relatively straightforward compared to many other countries. The 10% rate has remained stable, providing businesses with predictable tax planning opportunities. However, certain sectors may be subject to different rates or additional taxes.²

It's worth noting that Qatar has specific provisions for different types of businesses and income sources. Companies engaged in oil and gas exploration activities may face higher tax rates, while some free zone entities may benefit from tax exemptions or reduced rates under specific conditions.²

The Qatar tax year typically follows the calendar year from 1 January to 31 December, though companies can apply for different accounting periods with approval from the tax authorities.³

Read more about Corporate Tax Planning best practices

How to Pay Corporate Tax in Qatar

Corporate tax payments in Qatar are administered by the General Tax Authority (GTA),² which oversees tax collection and compliance for all businesses operating in the country. Companies must register with the GTA and obtain a tax registration number before commencing operations.⁴

Payment Currency and Methods

Corporate taxes in Qatar must be paid in Qatari Riyals (QAR). The General Tax Authority accepts payments through several methods, including bank transfers, online payment systems, and authorised banks. Most businesses prefer electronic payment methods for efficiency and record-keeping purposes.⁵

Payment Timeline and Deadlines

Companies in Qatar are required to file their annual corporate tax returns within four months of their financial year-end. For companies following the calendar year, this means returns must be submitted by 30 April of the following year. The full tax payment is due at the same time as the filing deadline.³

For most businesses, there is no requirement to make quarterly advance tax payments. However, companies may be obligated to withhold tax on payments made to non-residents for services and remit this to the General Tax Authority monthly.⁶

Penalties and Interest

Late filing or payment of corporate tax in Qatar incurs penalties and interest charges. The penalty for late filing is QAR 500 per day of delay, up to a maximum of QAR 180,000. For late payment, a penalty of 2% of the unpaid tax amount is charged for each month or part of a month of delay.⁷

Tax Calculation Example

Let's consider a company with an annual turnover of QAR 5.5 million (approximately £1.5 million) and a profit margin of 10%, resulting in taxable profits of QAR 550,000.

At Qatar's standard corporate tax rate of 10%, the annual tax liability would be:

QAR 550,000 × 10% = QAR 55,000

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Tax Compliance in Qatar

The practical ways to stay fully compliant with the Qatar tax regulations:⁸

• Register with the Dhareeba system: All taxpayers must use the electronic Dhareeba platform to handle correspondence with the General Tax Authority (GTA) and manage obligations such as Corporate Income Tax (CIT), Withholding Tax (WHT), and Transfer Pricing (TP).
• File annual tax returns on time: Companies must submit their income tax return, including audited financial statements, within four months of the end of their accounting period. For example, a company with a year-end of 31 December must file and pay any tax due by 30 April, the following year. Late filing carries a penalty of QAR 500 ($138) per day, capped at QAR 180,000 ($49,400). Delayed tax payments are subject to a 2% monthly penalty on the unpaid amount.
• Comply with WHT requirements: A 5% WHT applies to services used or benefited from in Qatar, even if performed abroad. Entities must remit WHT to the GTA and a statement by the 15th day of the following month. Failure to apply or remit WHT leads to penalties equal to the unpaid tax and an additional 2% monthly for late payments.
• Follow accounting principles: Businesses under the Qatar tax regime must comply with International Financial Reporting Standards (IFRS). For Qatar Financial Centre (QFC) entities, additional frameworks such as US GAAP, UK GAAP, or AAOIFI standards may apply.⁹ All financial statements must be submitted in Arabic.

International Expansion to Qatar

Qatar has become a key destination for investors looking to diversify their portfolio and businesses that want to expand beyond their boundaries. It is one of the fastest-growing economies in the Gulf, strategically located at the crossroads of East and West. Its capital, Doha, connects businesses to more than 160 destinations through Qatar Airways,¹⁰ while Hamad International Airport has been ranked the world’s best. Around 80% of the global population is within a six-hour flight, making Qatar an attractive hub for international trade and corporate expansion.¹¹

The country’s economy has grown 38-fold in the past three decades and continues to perform strongly. Its GDP growth stood at 1.7% in 2024, with the non-hydrocarbon sector expanding by 1.9%. The World Bank projects real GDP growth of 3.2% in 2025, with non-hydrocarbon industries expected to grow 4% annually by 2030.¹²

Besides this, Qatar is also the world’s top exporter of liquefied natural gas (LNG) and is expanding its LNG fleet by over 100 new vessels. Credit ratings remain strong, with Moody’s and Fitch ranking Qatar at Aa2 and AA, respectively, reinforcing its financial resilience.¹³ Moreover, Qatar University stands as a leading center for academic and research excellence in the region, hosting over 23,000 students across 12 diverse colleges.¹⁴

Foreign investors benefit from a legal framework based on English common law, the ability to transfer funds in any convertible currency, and the right to 100% foreign ownership in many sectors. Profits can also be fully repatriated.¹² These incentives, combined with clear rules on corporate tax in Qatar, create a stable and investor-friendly environment. The current system imposes corporate tax obligations primarily on foreign-owned businesses, offering a competitive rate compared to many global markets.

Careful corporate tax prep and the use of expert corporate tax planning and management strategies help businesses stay compliant while optimising tax efficiency.

To start a business in Qatar:¹⁵

1. Begin with market research to assess Qatar’s business environment and opportunities.
2. Develop a solid business plan with clear forecasts and goals.
3. Select a location that aligns with your business operations.
4. Choose an appropriate business structure.
5. Register your business with the Ministry of Commerce and Industry (MOCI).
6. Complete tax registration.
7. Open a corporate bank account to manage payroll and operational expenses.

After knowing the core requirements of Qatar’s business environment, one should conduct more research. One can plan an effective business structure when one knows all about the functional payment methods in Qatar, the A-list banks, and how one’s target market navigates this economy.

Discover the top 5 best Corporate Tax softwares

Incorporation of Business in Qatar

To incorporate a company in Qatar, businesses must follow the structured process set by the Ministry of Commerce and Industry (MOCI). The key steps are:¹⁶

1. Choose a business structure and define intended activities.
2. Reserve a trade name through Qatar’s Single Window portal, ensuring compliance with naming rules.
3. Submit the real beneficiary declaration form to complete the incorporation procedures.
4. Provide required documents: valid passports for foreign partners, notarised commercial registers (with Arabic translation), and approvals from competent authorities if activities require them.
5. Authenticate incorporation documents with the Companies Affairs Department and the Ministry of Justice.
6. Appoint an authorised signatory if different from the partners or owner.
7. Open a corporate bank account for payroll and operational expenses.
8. Register for taxation to ensure compliance with the Qatar corporate tax rate and reporting obligations.

Companies must also keep tax management in focus when preparing for a potential change in corporate tax rate. Careful corporate tax planning and management help businesses avoid penalties and remain compliant.

Note: In Qatar, digitalisation has made incorporation faster. Most submissions, including trade name reservation and document uploads, can now be processed online via the Single Window system, reducing the time it takes to establish an entity and begin operations.

Business Entities in Qatar

The establishment of entities in Qatar is governed by the Commercial Companies Law No. 11 of 2015 (as amended by Law No. 8 of 2021) and the Foreign Investment Law No. 1 of 2019. Here are the main options:^{8 17}

• General Partnership Company: Formed between two or more persons who share unlimited liability for obligations.
• Simple Partnership Company: This type of company includes active partners with unlimited liability and silent partners liable only up to their capital contribution.
• Sole Proprietorship Company: Fully owned by a single natural or corporate entity.
• Shareholding Company: Capital divided into tradable shares; liability limited to the shares' value.
• Private Shareholding Company: Requires at least five founders, with a minimum capital of QAR 2 million; not publicly listed.
• Limited Liability Company (LLC): Between 2 and 50 partners, each liable only to their shareholding; most common for foreign investors.
• Holding Company: Controls subsidiaries by holding at least 51% ownership.
• Foreign Companies (ministerial exemption): Permitted if involved in state contracts or exceeding 49% foreign ownership under specific approvals.

International Corporate Tax Best Practices

Managing corporate tax obligations across multiple jurisdictions requires strategic planning and adherence to international standards. Here are key practices for businesses operating internationally, including in Qatar.

Stay Compliant with Local and International Standards

Ensure full compliance with Qatar's tax regulations while maintaining adherence to international frameworks such as the OECD's Base Erosion and Profit Shifting (BEPS) guidelines. Qatar has been working to align its tax policies with international standards, making compliance with both local and global requirements essential.

Leverage Double Taxation Treaties

Qatar has signed double taxation agreements with numerous countries to prevent businesses from being taxed twice on the same income. These treaties can significantly reduce your overall tax burden when operating across borders. Understanding and properly applying these agreements is crucial for tax efficiency.

Maintain Comprehensive Financial Records

Keep detailed and accurate financial records that meet both Qatari requirements and international accounting standards. This not only ensures compliance but also facilitates smoother audits and tax assessments. Proper documentation is essential for claiming deductions and credits available under Qatar's tax system.

Plan for Transfer Pricing

If your business involves transactions between related entities in different countries, ensure your transfer pricing policies comply with Qatar's regulations and international guidelines. This helps avoid disputes with tax authorities and ensures appropriate profit allocation.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Qatar efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate Tax in Qatar

Who is liable for corporate tax in Qatar?

All companies incorporated in Qatar are liable for corporate tax on their worldwide income. Foreign companies with a permanent establishment in Qatar are taxed only on Qatar-source income. This includes branches of foreign companies, representative offices conducting business activities, and companies with significant business presence in Qatar.

Are there any tax incentives for businesses in Qatar?

Yes, Qatar offers various tax incentives, particularly for businesses operating in designated free zones and those contributing to the country's economic diversification goals. Companies in Qatar Financial Centre (QFC) and other free zones may benefit from reduced tax rates or temporary exemptions. Additionally, businesses involved in manufacturing, technology, and other priority sectors may qualify for specific incentives.

What is the tax treatment of dividends in Qatar?

Dividends paid by Qatari companies to shareholders are generally subject to withholding tax, though the rate may vary depending on the recipient's tax residency and applicable double taxation treaties. Dividends received by Qatari companies from foreign subsidiaries may be exempt from tax under certain conditions.

What is the process for registering for corporate tax in Qatar?

Companies must register with the General Tax Authority within 30 days of commencing business activities in Qatar. The registration process requires submission of incorporation documents, business licenses, and other relevant paperwork. Once registered, companies receive a tax registration number that must be used for all tax-related communications and filings.

What are the common pitfalls to avoid regarding corporate tax in Qatar?

Common mistakes include failing to register for tax on time, inadequate record-keeping, missing quarterly advance payment deadlines, and incorrectly applying double taxation treaty benefits. Additionally, businesses often underestimate the importance of transfer pricing documentation and fail to properly classify income sources, which can lead to disputes with tax authorities.

Sources used in this article:

1. PwC Tax Summaries: Qatar Corporate Income Taxes
2. General Tax Authority (GTA): Laws
3. PwC Tax Summaries: Qatar Tax Administration
4. Dhareeba: Online Tax Portal
5. Dhareeba: Income Tax Details
6. PwC Tax Summaries: Qatar Withholding Taxes
7. KPMG: Qatar's Tax Law and Regulations (PDF)
8. PwC: Doing Business in Qatar Guide (PDF)
9. Invest Qatar: Tax Regime
10. Ministry of Foreign Affairs: Tourism in Qatar
11. Invest Qatar: Why Qatar for Business
12. Qatar Government Communications Office: Economy Priorities
13. Qatar Government Communications Office: Energy Priorities
14. Qatar Government Communications Office: Education Priorities
15. Multiplier: Qatar Company Registration
16. Ministry of Commerce and Industry: Procedures Manual (PDF)
17. Ministry of Commerce and Industry: Types of Companies

Sources last checked 25/09/2025