Qatar - 5% Withholding Tax

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. 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.

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