Qatar’s payroll and taxation system is unique in that many forms of standardized taxes are not applicable. Income taxes, social security taxes and sales taxes are not levied for individuals, while corporate income taxes are levied at a flat 10%. Proper care and attention to Qatar tax laws must be given to navigate the taxation system.
A remote payroll in Qatar is where a foreign company, i.e. a non-resident company, payrolls a resident employee in Qatar. This applies to both local and foreign employees. One option for a non-resident company to payroll its employees (local and foreign) in Qatar is to use a fully outsourced service like a GEO or PEO which will employ and payroll the staff on their behalf.
In some cases, a company will register their business in China under one of the forms available, (RO, WFOE or JV) but prefer to have another company administer its payroll. This can be accomplished through a payroll provider. It is important to note that the company, as the Employer of Record, is still fully responsible for compliance with employment, immigration, tax and payroll regulations. But the payroll calculations, payments and filings can all be outsourced to the payroll provider.
Larger companies with a commitment to Qatar may wish to run their own local payroll for all employees, foreign and local. In order to accomplish this, they will have to complete incorporation, register the business and then hire the necessary staff. There will be a need for in country human resources personnel who have the background needed to manage a Qatari payroll, and can fulfill all tax, withholding, and payroll requirements.
This approach carries significant cost and requires some knowledge of local employment and payroll regulations. The company will need a local accounting firm and potentially legal counsel to ensure full compliance with Qatari employment laws.
Companies can outsource the employment and payroll of their staff in Qatar to a GEO, like Shield GEO. This is possible for both foreign workers and Qatar nationals. This is the easiest, fastest and safest way to payroll staff in Qatar.
Shield GEO manages all aspects of payroll for workers in Qatar, including taxes, withholding, social security payments and other statutory requirements. Shield GEO becomes the Employer of Record and employs the staff on behalf of the client.
Staff are paid monthly with tax and social security deducted at source and paid to local authorities. Shield GEO will invoice the client monthly in advance of the payroll date. The invoice consists of the Total Cost of Employment (Base salary + Employers Statutory Contributions + Additional statutory contributions) and a Management Fee. Shield GEO provides the employees with payslips.
Read more about outsourced payroll and employment through Shield GEO.
Qatari Riyal (QAR)
|Corporate Income Tax ?||
An entity that is wholly or partially foreign owned by a non-Qatar company which derives income from sources in Qatar is subject to tax in Qatar. This applies to any foreign share of profits generated in a joint venture while in Qatar.
There is a flat Corporate Income Tax (CIT) of 10% for most cases, while no CIT applies to entities wholly owned by Qatari nationals and Gulf Cooperation Council (GCC) nationals. Companies operating in the oil and gas sector are subject to a 35% corporate tax rate
|Income Tax Rate ?||
|Sales Tax ?||
Qatar does not levy and sales taxes or VAT.
|Withholding Tax ?||
Qatar’s tax law requires all entities registered in Qatar with a permanent establishment to withhold a percentage of payments made to non-residents. The withholding tax rates are as follows:
Qatar has entered into double taxation treaties with over 50 countries, where withholding taxes on dividends, interest and royalties may differ.
Entities registered in the Qatar Financial Centre (QFC) are no required to withhold taxes.