Qatar - 5% Withholding Tax

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As I am still based in Dubai while servicing a company contract in Qatar, I invoice monthly from Dubai. With effect from August 1st, the client has started to withhold 5% of the invoiced amount, apparently in line with a new Qatari law. It appears that all expats working in Qatar without Qatari residency are to be taxed at 5%, from now on. Qatar introduced this before, a couple of years ago, and withdrew it when all the major international companies simply put their rates up to compensate, and by more than the 5%. It's not obvious why Qatar thinks it will be any different this time around, but time will tell. Anyone else being affected by this?

Comments

  1. Tarek3 September 2012 at 14:12

    yes but if you work for more than 183 days ( with evidence) there should be no more witholding tax ... so make sure that this applies to your case.

    ReplyDelete

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