Effective Tax Rate on Rental Income
|Click here to see a worked example
|Source:Global Property Guide
Nonresident individuals, other than Qatari and GCC nationals, are taxed only on their business income in Qatar.
Income tax is levied on any foreign business entity, whether a legal entity or a natural person, carrying out a business activity in Qatar. A ´business activity´ is defined as any occupation, profession, service, trade or the execution of a contract or any other business for the purpose of making profit.
Income tax is levied at a flat rate of 10%.Taxable income is calculated as gross income less income-generating expenses.
Leasing property is considered a business activity and rental income is taxed at the standard income tax rates. Income-generating expenses are deductible when computing for the taxable income.
Realized capital gains not related to business activities are not liable to tax.
Capital gains realized by individuals carrying on a business activity are taxed at the standard income tax rates.
There are no property taxes in Qatar.
Corporate income tax is levied at a flat rate of 10%. The new income tax law, which came into effect in January 2010, was established to encourage foreign investment.