GTL Summary:

Article 9 sets the standard corporate income tax rate at 10%. However, a higher rate of at least 35% applies to petroleum operations and petrochemical industries. A final withholding tax of 5% is imposed on royalties, interest, commissions, and service fees paid to non-residents for activities not linked to a permanent establishment in Qatar. Furthermore, if a government agreement concluded before this law does not specify a rate, 35% applies. This article balances a competitive general rate with higher levies on natural resource sectors and a clear withholding regime for cross-border payments.

Document Type: Tax Law Article
Law: Income Tax Law 24 of 2018
Article Number: 9
Country: 🇶🇦 Qatar
Location: Section 3 - Tax Calculation › Chapter 2 - Tax Rate
Order: 15
Last updated at: 2026-02-23 12:13:40 UTC

SECTION 3 - TAX CALCULATION

Chapter 2 - Tax Rate

Article 9

The tax rate is 10% of the taxable income of the taxpayer during the tax year.

Nonetheless, tax may exceptionally be rated as follows:

  1. The tax rate and all other tax conditions stipulated in the agreements related to petrochemical industries, as well as those related to petroleum operations as defined by Law No. (3) of 2007 regarding the exploitation of natural resources and their resources, shall apply, provided that the tax rate in all cases is not less than 35%.

  2. Subject to the provisions of tax agreements, a final withholding tax of 5% of the gross amount applies to royalties, interest, commissions, and payments for services performed wholly or partly in the state, and paid to non-residents for activities not related to a permanent establishment in the state, as specified by the Regulation.

  3. The tax rate specified in the agreements involving the government, ministries, other government entities, public authorities, or institutions, or their representatives, and concluded before the implementation of this Law, shall apply. If the agreement does not specify a tax rate, a tax rate of 35% shall apply.

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