Qatar’s tax landscape is rapidly evolving with the introduction of transfer pricing filing requirements in 2020 and a domestic minimum top-up tax (DMTT) for large multinational enterprises, effective from January 1, 2025. These developments reinforce Qatar’s commitment to global tax alignment while maintaining its appeal as an investment destination.
Looking ahead, the next major changes include the implementation of value-added tax (VAT) which is expected to happen in 2026 as well as the introduction of e-invoicing, which will modernise tax compliance and enhance transparency across transactions. These initiatives underscore efforts to bolster regulatory efficiency and align with global best practices.
Oversight
The General Tax Authority (GTA) oversees tax compliance for most entities, while companies registered under Qatar Financial Centre (QFC) are governed separately. Wholly Qatari or GCC-owned companies are exempt from tax, provided that the Qatari and GCC national shareholders are residents in Qatar. Shareholders selling shares in Qatar resident firms are generally subject to capital gains tax at the rate of 10%.
Applicable Taxes
The following taxes are imposed in Qatar.
• Corporate Income Tax (CIT): A CIT of 10% applies to fully or partly foreign-owned entities based on the extent of their agreed percentage of profit distribution to the foreign shareholder. However, this rate does not apply to certain entities in the petroleum and petrochemicals sector, where the tax rate specified in their prevailing or new agreements with Qatar takes precedence. If an entity falls within the petroleum and petrochemicals definition, the applicable tax rate is at least 35%.
Entities operating in Qatar must register on Dhareeba, the country’s online tax platform, and obtain a tax card from the GTA within 60 days of obtaining commercial registration. The QFC Authority (QFCA) administers tax affairs for QFC-registered firms. QFC imposes a 10% tax on the local source profits of firms licensed by QFC. Various tax exemptions apply for qualifying activities, dividends and capital gains. Unregulated QFC limited liability companies (LLCs) with a minimum 90% Qatari ownership benefit from a 0% CIT rate.
Entities established under special investment laws are generally exempt from CIT, but they must register with the GTA, enrol on Dhareeba, file CIT returns and comply with withholding tax (WHT) rules, except for free zone entities.
QFC entities must submit their CIT returns within six months from the end of their financial year. State entities under the GTA must file within four months from the end of their financial year.
• Global minimum tax: Qatar formally adopted the OECD’s pillar two global minimum tax framework through Law No. 22 of 2024, effective January 1, 2025. The legislation establishes a 15% minimum tax rate for large multinational groups and introduces both a DMTT and an income inclusion rule (IIR).
• WHT: Qatar does not impose WHT on dividends. However, under state tax law, a 5% tax applies to interest, royalties, technical service fees, and other payments to non-residents when the services are used in Qatar, even if performed elsewhere. The WHT must be submitted to tax authorities by the 15th of the month following to payment or – in case of a delayed payment – 12 months period after issuance of the invoice. QFC does not levy WHT.
• VAT: Qatar is a signatory to the Unified Agreement for VAT of the GCC, which establishes a common legal framework for the implementation of VAT across member states. The framework provides for a standard VAT rate of 5% on most goods and services. Qatar is expected to align with the GCC VAT model in due course and introduce VAT in 2026.
• Personal income tax: Individuals are generally not subject to personal income tax, meaning salaries, wages and allowances are tax-free. However, if an individual engages in business activities and generates Qatar-source income, the CIT rules apply.
• Customs duties: Qatar imposes 5% duty on the majority of imported goods.
• Excise tax: Excise tax is applicable on the following products: ◊ Carbonated sugary drinks at 50%; ◊ Energy drinks at 100%; ◊ Tobacco and tobacco products at 100%; and ◊ Special purpose goods at 100%, including alcoholic beverages and pork products. All businesses that import, produce or store excisable goods must be registered with GTA and are accountable for filing and paying excise tax. Excise tax returns must be filed on a quarterly basis on the 15th day of the following month of each quarter.
• Double Taxation Treaties: Qatar maintains one of the most extensive double taxation treaty networks in the region, now covering more than 75 countries. These treaties play a critical role in facilitating cross-border trade, investment, and dispute resolution while supporting Qatar’s broader economic development strategies.
Other Filing Requirements
Other filing requirements include:
• Contract reporting: Under state law, taxpayers must report contracts exceeding QR200,000 ($54,900) for services or QR500,000 ($137,000) for mixed agreements involving contracting or supply arrangements. Contracts with non-residents must be reported regardless of value and must be submitted within 30 calendar days via Dhareeba.
• Transfer pricing (TP) documentation: Under state law, entities which have met the relevant thresholds must prepare and submit TP documentations which include a TP declaration, master file and local file. The deadline for filing the master file and local file is 60 days from the due date of the corporate income tax return.
• Country-by-country reporting (CbCR): In QFC, transactions between related parties are subject to TP provisions, but there is no mandatory TP documentation filing with QFC tax department. Multinationals with over QR3bn ($823.4m) in revenue must file CbCR within 12 months of end of the financial year
Advance Tax Rulings
While there are no provisions for general advance tax rulings under Qatar state law, QFC offers binding advanced rulings. Pursuant to Qatar joining the OECD base erosion profit sharing (BEPS) inclusive framework, the GTA has introduced guidelines for obtaining advance pricing agreements as part of BEPS Action 14.
Economic Substance Regulations
These apply to certain entities engaged in intellectual property and geographically mobile activities. Businesses must demonstrate substantive operations in Qatar to maintain preferential tax treatment. Compliance requires an appropriate number of full-time employees, sufficient operating expenses and adherence to reporting obligation.
Penalties
Businesses failing to comply with Qatar’s tax regulations may incur penalties, including:
• Late tax return filing: QR 500 ($137) per day, up to a maximum of QR 180,000 ($49,400).
• Failure to pay income tax on time: 2% monthly interest, capped at 100% of the unpaid tax.
• Delay in tax registration: QR 20,000 ($5490) fine.
• Late payment of WHT: 2% monthly penalty, capped at 100% of unpaid tax.
• Failure to report contracts, agreements, or transactions to tax authorities: QR 10,000 ($2740) per contract for late reporting.
Establishing A Business
Qatar continues to attract foreign investment by offering tax exemptions, Customs duty relief, and full profit repatriation, making it an appealing destination for global businesses. Investors enjoy unrestricted capital transfers for asset liquidation, further enhancing ease of doing business. The country’s political stability, modern infrastructure and strategic location strengthen its role as a regional investment centre. Foreign investors can establish operations through various commercial arrangements, including LLCs, branch offices, joint ventures, and representative trade offices, each offering different levels of ownership and regulatory requirements. These include:
• Foreign Capital Investment Law No. 1 of 2019: This legislation generally limits foreign ownership of a business to 49%, with a Qatari sponsor holding the remaining 51%. However, 100% foreign ownership may be permitted in all sectors if they are conform with Qatar’s development plans and are approved by the minister of commerce and industry – approvals are granted case by case. A foreign entity carrying out a project in Qatar may be permitted to establish a branch office with 100% foreign ownership, provided the contract is with a government or semi-government entity. The project should facilitate delivery of a certain service or should be in public interest.
• QFC: This centre was established to attract financial service companies, including banks, insurance firms, and brokerage houses. However, various non-regulated industries, such as shipbroking, investment grading, headquarters operations, tax consulting and legal services, can also obtain QFC licences. One of QFC’s main advantages is that there are no restrictions on foreign ownership. Additionally, QFC operates as an independent onshore jurisdiction, granting access to the local market while maintaining its distinct legal framework.
• Free zones: Qatar’s free zones are designed to attract international investment in strategic sectors. Key benefits of free zones include:
◊ 100% foreign ownership;
◊ Incorporation of new entities or operation via foreign branches;
◊ Corporate income tax exemption for 20 years;
◊ No Customs duties on imports for free zone use;
◊ Unrestricted repatriation of capital and profits;
◊ Freedom to move foreign currency through local banks, subject to QCB regulations; and
◊ Advanced infrastructure integrated with ports and airports.
While free zones provide considerable advantages, goods moved into the Qatari market are subject to Customs duties. Furthermore, although free zone entities are exempt from the Qatar income tax law, businesses must strictly adhere to licensing restrictions and operate within the free zones’ regulatory framework. Activities outside this scope may trigger standard tax and regulatory obligations.
• Qatar Science and Technology Park (QSTP): QSTP is dedicated to hosting technology-focused companies that introduce and develop innovations in Qatar. Key advantages of QSTP include:
◊ The ability to operate as a branch of a foreign company;
◊ Incorporation of 100% foreign-owned local organisations;
◊ Freedom to trade without a local agent;
◊ Sponsorship of expatriate employees;
◊ No import or export duties;
◊ Unrestricted repatriation of capital and profits; and
◊ Access to cost-effective business facilities.
Despite these exemptions, QSTP entities must still register with the GTA, file annual tax returns and withhold tax on certain payments to non-residents. Business activities outside the QSTP license scope, particularly in mainland Qatar, may be subject to standard tax regulations.
Currency Restrictions
Qatar imposes no exchange control restrictions. This allows businesses and individuals to freely transfer profits, dividends and capital across borders. Both inbound and outbound transactions are unrestricted, ensuring seamless international trade and investment.
Regulatory Requirements
The financial sector in Qatar is strictly regulated to ensure transparency, compliance and financial stability. Oversight is provided by the QCB – which governs commercial banks, sharia-compliant financial service providers, insurance companies and exchange houses – enforcing monetary policies and risk management standards.
Additionally, the QFC Regulatory Authority (QFCRA) oversees financial institutions operating within QFC. The entity enforces international financial compliance standards and ensuring companies align with anti-money laundering and counterterrorism financing regulations.
Financial entities must adhere to licensing requirements, capital adequacy rules and periodic reporting under QCB and QFCRA supervision. The regulatory framework is designed to protect investors, enhance financial integrity and foster economic growth.
Accounting & Finance Regulations
Companies and branches of foreign entities are expected to adhere to the following financial reporting requirements:
• Financial statements: Entities registered under state law have to follow International Financial Reporting Standards and their financial statements must be prepared in Arabic. The tax regime of QFC accepts also other Generally Accepted Accounting Principles or any standards issued by the Accounting and Auditing Organisation for Islamic Financial Institutions and they can be issued in English.
• Audit requirements: Under Commercial Companies Law No. 11 of 2015, public shareholding companies, LLCs, holding firms and limited share partnerships must appoint at least one registered auditor in Qatar. Auditors may serve for a maximum of five consecutive years.
• Fiscal year: The standard financial year follows the Gregorian calendar – January 1 to December 31.
However, with prior approval from the GTA, companies may adopt alternate financial years.
OBG would like to thank KPMG for its contribution to THE REPORT Qatar 2025
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