Qatar: Domestic Corporate Taxation
Calculation of Taxable Base
The taxable base of businesses in Qatar is their Qatari income only, although interest and other bank income from outside of the country, but which is related to the income arising in Qatar, is included in taxable income. Allowable deductions include the following:
- Interest expenses;
- Rent paid;
- Salaries, labor costs, and end-of-service benefits;
- Pension funds and related charges;
- Fees and taxes other than income tax; and
- Debts that have been written off, so long as they have been approved by the Income Tax Department and meet relevant accounting standards.
Non-deductible expenses include:
- Personal, non-business related expenses;
- Criminal and tax penalties;
- Expenses or losses recovered by way of an insurance policy, under contract, or by compensation;
- Depreciation that exceeds cost; and
- Certain branch shares of head office expenses that exceed limits set by the Income Tax Department.