The Income Tax law of 2018 is an amendment of all the previous income tax laws passed by Qatar. The income tax on foreign companies working in Qatar or on the stake of foreign partners in joint ventures has remained the same as it was before. This income tax has for the time being been fixed at a 10% flat rate on profits.
The amendments that have been made in the Income Tax law today focus on the following:
- To reform administrative and procedural systems.
- To support tax compliance by taxpayers.
- To grant more flexibility in granting tax exemptions to institutional activities in key economic sectors and economic zones.
- To support growth and economic diversification, thereby encouraging and attracting foreign investment.
The important thing to note here is that this year again, Qatar will not be imposing any income tax on the salaries and wages of Qatari citizens and residents of the country. It is also giving exemption for equity shares that have been listed on a recognised stock exchange, profits gained on bank deposits and companies that operate in fisheries and the agricultural sector. Marine and aerial transportation have also been granted exemption under the principal of reciprocity.