Contents
1. Introduction
2. Purpose of the Guide
3. Key Definitions
4. Income Tax Calculation
5. Tax-Exempt Income
6. Allowable and Non-Allowable Deductions
7. Loss Carry-Forward
8. Foreign Partner's Share
9. Tax Return and Financial Penalties
10. Depreciation
11. Rates of Deductions and Commissions
The General Tax Authority has issued this guidance manual with the aim of clarifying the method of tax calculation.
The content of this guide is not considered an amendment to any provisions of the laws or regulations applied in the State of Qatar.
This guide is not considered a legal reference and cannot be relied upon in judicial and tax rulings.
Introduction
An annual income tax of 10% is imposed on the net income earned by individuals or legal entities (such as companies and establishments) from any profit-generating commercial or professional activity during the preceding tax year.
Profits of resident legal entities are exempt to the extent of:
The share of profits of Qatari or GCC natural persons residing in the State.
The share of profits of legal entities wholly owned by Qatari or GCC nationals residing in the State.
The share of profits of legal entities partially owned by Qatari or GCC nationals residing in the State, in proportion to their profit shares therein.
Purpose of the Guide
To provide guidance and clarification to taxpayers on the method of calculating tax, in accordance with Law No. (24) of 2018 on Income Tax, its Executive Regulations, and their amendments.
This guide is intended exclusively for taxpayers subject to the 10% income tax rate only.
Key Definitions