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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.
Trading losses may be carried forward and set off against future profits for a period of three years from the end of the tax year in which the losses were incurred. Losses cannot be carried back.

 

 

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