Qatar Applies 5% Withholding Tax on Payments to Non-Residents
Qatar imposes a 5% final withholding tax on royalties, interest, commissions and certain service fees paid to non-residents for activities covered under Article 9(2) of Income Tax Law No. 24 of 2018.
Qatar’s General Tax Authority (GTA) applies a 5% withholding tax on specified payments made to non-residents for activities not connected with a permanent establishment in the State of Qatar.
Under Article 9(2) of Income Tax Law No. 24 of 2018, the withholding tax applies to royalties, interest, commissions and fees for services performed wholly or partly in Qatar, subject to applicable tax treaty provisions.
A service may be considered performed partly in Qatar if necessary work, such as data collection, site inspections or service completion, takes place within the country.
The responsibility for deducting and remitting the tax rests with the relevant payer. The deducted amount must be submitted to the General Tax Authority before the 16th day of the month following the month of deduction. The payer must also issue a withholding tax certificate to the recipient.
Payments to persons holding a valid Qatar tax card or registered with the Qatar Financial Centre are generally excluded from withholding tax. Eligible non-residents may also apply for a refund where an applicable double taxation treaty supports their claim.
