Employer Tax Contributions

Tax Type	Rate	Base
Corporate Income Tax	10%	Taxable profits from Qatar-sourced income
Social Security (Qatari Nationals)	14%	Employee's basic salary, up to QAR 100,000 monthly
Withholding Tax	5%	Payments to non-residents for services, interest, royalties, and commissions
Sports and Social Contribution	2.5%	Annual net profits for companies listed on the Qatar Exchange

Filing & Compliance

• Corporate tax returns are due within four months of the end of the accounting period. An extension to August 31 for fiscal years ending December 31 was announced.
• Withholding tax returns are due monthly by the 15th of the following month.
• Employers must register Qatari employees for social security within 30 days of employment and remit contributions by the fifth day of the following month.

In Qatar, there is no personal income tax on employee salaries. However, employers have certain tax obligations and may deduct specific amounts from employee pay under limited circumstances.

Employer Obligations

• Social Security Contributions: Employers contribute 10% of the basic salary for Qatari employees. There are no social security obligations for foreign employees.
• Corporate Income Tax: Businesses are subject to a 10% corporate income tax on profits. Various deductions are allowed, including employee costs (salaries, wages, gratuities, end-of-service benefits), rents, insurance premiums, and depreciation. Interest expenses are deductible, except for loans between a Qatar branch and its head office or related parties. Charitable contributions are deductible up to 3% of net profit. Losses can be carried forward for five years.

Employee Deductions

• No Income Tax: Qatar does not levy income tax on employee salaries, wages, or allowances.
• Permitted Deductions: Employers can only deduct from an employee's pay under the following conditions:
  • Required by law or regulation or the employment contract
  • Written agreement from the employee
  • Reimbursement for overpayment of wages or expenses
  • Court order (capped at 35% of remuneration in the Qatar Financial Centre)
  • Loan repayment (capped at 10% of remuneration in the Qatar Financial Centre, with no interest charged)
  • Disciplinary penalty (capped at five days' remuneration for a single offense or per month in the Qatar Financial Centre)
• Deduction Limit: No more than 50% of an employee's remuneration can be deducted in a single month.

General Information on Payroll in Qatar

• Wage Protection System (WPS): Qatar mandates the use of WPS for private sector companies to ensure timely and accurate salary payments through approved banks and financial institutions. The Qatar Financial Centre is exempt from this requirement.
• Minimum Wage: The minimum wage is 1,000 QAR per month. Employers must also provide allowances of at least 300 QAR for food and 500 QAR for housing if not provided directly.
• Working Hours and Leave: The standard workweek is up to 48 hours, with overtime paid at 125% of the regular rate (150% for night work). Annual leave depends on length of service.

Please note that this information is current as of February 5, 2025, and may be subject to change.