TaxSavvyQA

Exempt company paying a foreign consultant

We are Qatari owned and exempt. Do we still deduct WHT from a foreign consultant?

The situation

WHT duty applies to the payer whatever its own tax status. Payments to non-residents for services used in Qatar carry 5 percent WHT.

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

Your exemption covers your own profit, not your duty as a payer. On a QAR 50,000 fee, deduct QAR 2,500 and pay it to the GTA by the 16th of the following month. Not deducting makes the payer liable for the tax.

What to do

  1. Deduct 5 percent from the payment.
  2. File the WHT statement on Dhareeba.
  3. Pay by the 16th.
  4. Give the consultant a copy.

We can do this for youTax return for a fully Qatari or GCC owned company (simplified or full return): QAR 3,000

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