TaxSavvyQA

Dividends to foreign shareholders

Do we deduct WHT when paying dividends to our foreign parent?

The situation

Qatar does not impose WHT on dividends under domestic law.

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

Dividends from taxable profits are paid without Qatar WHT. The profits were already taxed at 10 percent on the foreign share. Check your parent's home country rules for any tax on receipt.

What to do

  1. Pay the dividend after board approval.
  2. No WHT statement needed for the dividend.
  3. Keep the resolution on file.
  4. Check home country tax.

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

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