TaxSavvyQA

Supplier with a Qatar tax card

A foreign company says it has a Qatar tax card. Do we still withhold?

The situation

In practice WHT applies when the provider lacks a valid Qatar tax card, because a tax card shows a registered Qatar presence.

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

Ask for a copy of the valid tax card and keep it on file. If it is valid, you normally do not withhold. If it has expired, treat the supplier as non-resident and withhold 5 percent until they show a valid card.

What to do

  1. Request the tax card copy.
  2. Check its validity date.
  3. Keep it with the invoice.
  4. Withhold if not valid.

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

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