Tax on property income in Qatar
Taxation Researcher | December 08, 2020
Effective Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 7.5% | 7.5% | 7.5% |
| Click here to see a worked example | |||
| Source:Global Property Guide | Disclaimer | ||
INDIVIDUAL TAXATION
Nonresident individuals, other than Qatari and GCC nationals, are taxed only on their business income in Qatar.
INCOME TAX
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.
RENTAL INCOME
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.
CAPITAL GAINS
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.
PROPERTY TAX
There are no property taxes in Qatar.
CORPORATE TAXATION
INCOME TAX
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.