New Qatar Income Tax Law

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Dear Salah,

Is this 5% withholding tax can be refunded by non-resident company? Do you have idea when it comes to filing and payment? And where to file?

Thanks in advance.

Dear Salah,

I agree with your Point. You meaning to say those companies which is not possible to get a Tax card will be affected with withholding Taxes from their Clients.

But My concern is that those international companies, they have registered here needs to withhold tax while they make payments to their related entities outside qatar. Say Head office regardless of whether the work is undertaken on shore or offshore.

And also if we are making a payment to our Sub consultant which is not registered here, we should withhold 5%.

Is my understanding is correct?

Dear Vitory,

Carefully read the web site of MOF, It says onlly WHT on interest is on hold.

Please correct me if I am wrong.

u should understand the difference between withholding and actual taxes.

As per the law which came in effect on 1/1/2010, for those companies that are doing work in the country without being registered / don't have CR/ the owner of the contract will withhold either 5% or 7% (depends on the activity)of the total payment on monthly basis.

This amount will be paid to the tax authority before the 15th of the following month.

In my opinion, this is to encourage foreign companies to establish a base office in the country.

Victory kindly give me the Link of the website.please

Dear Victory,

I didn’t know that...; Let me check with E&Y. They are also our Auditors. Anyway thanks a lot for the replay.

Dear Salah,

My understanding is that withholding tax is applicable all the international transfers they don't have a Permanent establishment here.

That means if we are transferring funds to Head Office we should have withhold.

Please correct me if I am wrong.

Thanks

you cannot withold paying taxes unless you are a 100% qatari owned company.

Currently new law is put on Hold!

Suggest to check online at Ministry of Finance website for detail tax presentation and E&Y or KPMG Tax consultants for latest update.

withholding applies only to companies that have no entity in Qatar.(no Commercial Register)

I think it's fair as those companies don't have expensis nor support the local economy.