Frequently asked questions by free zone companies

Qatar has a territorial taxation system, which means that an individual is taxable in Qatar if they earn qualifying Qatar-source income, regardless of where they live.

Salaries, wages, and allowances received by employees are not subject to income tax. Personal income is not taxed. This means that employees receive their wages and salaries without having to pay any taxes. Individuals who engage in any type of commercial activity with the intent of generating income, on the other hand, are required to pay tax under the Companies Tax Act.

If a self-employed person earns qualifying income in Qatar, he or she may be subject to income tax.

In order to assist the free zone companies with their main corporate tax concerns, we have compiled a list of frequently asked questions (FAQs).

Is a corporate tax levied?

All Free Zone investors are eligible for a 20-year corporate tax holiday.

The Qatar’s corporate tax rate

In Qatar, businesses are subject to the corporate income tax rate. The best chartered accountant service in Qatar is what we offer. Its quantity is based on the net income that organisations generate from conducting their companies, usually over the course of one fiscal year.

A company with 100% or 50% foreign ownership that receives income from Qatari sources is subject to Qatari taxation. In the case of a joint venture, the tax obligation of the joint venture is based on how much of the profit is distributed to the foreign partners. Corporate entities that are entirely owned by GCC and Qatari nationals who reside in Qatar are currently exempt from corporate income tax (CIT).

Regardless of where it was incorporated, an entity will be subject to tax in Qatar if it has earned income with a Qatari source, unless specifically exempt from tax.

With some exceptions, taxable income is typically subject to a flat (CIT) rate of 10%.

Will businesses in free zones be subject to corporate tax?

Businesses operating in Qatar will profit from 100% foreign ownership, renewable 20-year tax holidays, zero corporate tax, zero customs duty, and of course no personal income tax, as well as access to a skilled and adaptable workforce via a permit system directly managed by the Free Zone Authority.

Do foreigners in Qatar not pay taxes?

One of Qatar’s top auditing firms is IHPCA. Personal income is not taxed. This makes it evident that no taxes are taken out of the money that employees are paid. However, everybody who engages in any kind of commercial activity with the goal to make money is required to pay taxes under the Companies Tax statute.

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