Qatar taxation focuses on business income, which is taxable locally, and employment income which is tax-free. And the fact that Qatar does not levy personal income taxes on employee earnings makes it a popular employment destination for international expatriates. It's worth mentioning that employer-provided allowances provided as part of employment income to local and expatriate employees are also not taxable for income tax and social security purposes.
Expats are considered resident in Qatar in any of the following circumstances:
If you're an expat living and working in Qatar your personal income can be enjoyed tax-free, as long as you are classed as a resident of Qatar.
Partnerships consisting of individuals, as well as individuals carrying on business as professionals or sole traders, are taxed on net business income at the corporate income tax rate of 10%. Capital gains on the disposal of real estate and securities derived by individuals are exempt if the assets are not part of the individual's taxable activity.
Dividends and capital gains derived from shares of companies listed on the Qatar Stock Exchange are also exempt from local tax.
Qatar does not levy estate or gift taxes.
Income from succession and inheritances falls outside the scope of the local tax law...
Finally on this point, do not assume that just because you've expatriated to live in Qatar that your estate will not be liable to inheritance tax (IHT) in your old home nation, or any nation where you hold assets. For example, those domiciled in Britain remain liable for IHT on their worldwide estate.
If you are concerned about mitigating your IHT liability, we'd like to offer you a free initial consultation to determine whether we can help you.
Expatriate tax advice must take account of double tax treaties which Qatar has entered into with 59 countries. Qatar has signed treaties that are not yet effective with 36 further countries.
Qatar does not levy any social security taxes and there are no special expat tax rules around social security.
We believe the above information is accurate, however tax rates and rules can change, and we are NOT tax experts. Therefore, please do not rely exclusively on the information to determine your liability for tax.
Speak to a local tax expert for personalised advice, or consult an international taxation consultancy.
If you'd like our help to source someone to assist you, please get in touch and we will do all we can to help.
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