On 17 January 2019, Qatar’s new Income Tax Law (Law 24 of 2018) was published in the Official Gazette and replaced the previous Law 21 of 2009, and is effective from 13 December 2018. The main features of the new law are summarized in below:
- The corporate tax rate remains 10%.
- The corporate Income tax rate applicable to income carried out in connection with agreements relating to petrochemical industries is the rate provided for under such agreement but may not be less than 35%;
- A 5% withholding tax rate applies on cross borders payments in connection with royalties, interest, commission, and services rendered in Qatar by non-residents with no permanent establishment in Qatar;
- Penalties of QAR 500 per day will be imposed for delays in submitting the corporate income tax return, with a cap of QAR 180 000;
- Penalties at the rate of 2% per month of delay will be imposed for late tax payment, with a cap equal to 100% of the amount of tax liability;
- Penalties of QAR10, 000 (US$2,747) will be imposed for failure by tax-exempt entity to file a tax return;
- Penalties of QAR30,000 (US$8,242) will be imposed for failure to file audited financial statements; and
- Penalties of QAR 500,000 (US$137,363) will be imposed for failure to provide information related to international exchange of information.
