TaxSavvyQA

WHT rate on payments to foreign service providers

We pay a Dubai company for IT support. What WHT rate applies in Qatar?

The situation

Qatar applies 5 percent WHT on service fees, royalties, interest, commissions and technical fees paid to non-residents with no Qatar PE.

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
  • Law No. 24 of 2018 on Income Tax (single WHT rate): The 2018 law unified the old 5 and 7 percent WHT rates at a single 5 percent

What it means for you

On a QAR 30,000 monthly IT support fee, withhold QAR 1,500 and pay QAR 28,500 to the supplier, unless the contract requires you to gross up. The old 7 percent rate no longer applies since the 2018 law unified WHT at 5 percent. Check whether the UAE treaty gives any relief, which is usually claimed by refund.

What to do

  1. Confirm the supplier has no Qatar PE or tax card.
  2. Withhold 5 percent.
  3. File and pay by the 16th.
  4. Send the supplier the WHT statement.

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

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