TaxSavvyQA

Cloud software and online advertising

Do monthly payments to foreign software and ad platforms carry Qatar WHT?

The situation

Royalties and service fees paid to non-residents without a Qatar PE fall within WHT scope at 5 percent.

The law

  • Law No. 24 of 2018 on Income Tax (withholding tax): 5 percent WHT on interest, royalties, technical fees, commissions and service fees paid to non-residents with no Qatar PE; remit by the 16th of the next month

What it means for you

Licence fees for software and fees for online services used in Qatar can be royalties or services for WHT. Many companies miss card payments. On QAR 4,000 a month the WHT is QAR 200, which you may have to bear if the platform will not accept deductions.

What to do

  1. Review card statements for foreign platforms.
  2. Classify each as royalty or service.
  3. File and pay WHT.
  4. Budget for grossed up cost.

We can do this for youMonthly withholding tax on payments to non-residents and contract notifications: QAR 750

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