42 Taxation System 83 Qatar Economic & Commercial Activities Guide Corporate taxes The tax rate is fixed at 10% of the company’s total income in the State and is paid annually. This fixed rate is applicable only to companies and not to individual salaries (see personal taxes above). Ordinary business expenses are deductible and losses in any given year can be rolled over for a period of three years from the date of the accounting disclosure. Commercial activity is defined as any profession, craft, service, trade, industry, speculation, contractual work, or any work carried out for the purpose of making a profit or income. Rental income is also subject to a flat tax rate of 10%. The application of the Income Tax Law is different for entities operating in the oil and gas sector, or in which the government, ministries, or other governmental bodies, or public institutions or institutions owned by individuals, except the profits of directly or indirectly, fully or partially state-owned entities operating in the oil and petrochemical industries. In this regard, without prejudice to the provisions of Article 9 (paragraph 2, second paragraph) and Article 13 of Law 24/2018, the provisions of Law 24/2018 do not apply to the following: Ministries, government agencies, public authorities and institutions. International organizations and their branches operating in the country. Private associations and institutions and private institutions of public interest are established in accordance with the provisions of the law that govern each of them. Salaries, wages, allowances and the like. Total inheritance income. The obligation to deduct at source applies to amounts paid to non-resident individuals or legal entities by any entity in Qatar. # for more information see Law No. (24) of 2018 Issuing the Income Tax Law. How is corporate tax calculated? Companies - whether an individual or a company - has to pay tax on taxable income arising from sources in the state during the previous tax year. Gross income of the State may include the following: Carrying out any commercial activity in the state. Contracts are partially or wholly executed within the state. is no individual payroll income tax. This means that employees get their wages and salaries without any tax deduction. However, an individual who engages in any type of business activity with the intention of earning income is required to pay tax as per the corporate tax law. The total income of Qatar and Gulf nationals residing in Qatar is exempted from taxes. A resident is any individual who has a permanent residence in Qatar, or if he/she resides for more than 183 continuous or intermittent days within (12) months, or if his/her vital interests is in Qatar. Taxation System in Qatar... There
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