Withholding tax is a levy by a government ruling whereby a payor withholds or deducts tax from the gross payment made, the tax withheld shall then be remitted to the government. In Qatar, withholding tax is imposed on gross payments made to non-residents in relation to royalties and technical services (5% applicable rate) and on interest, commissions, brokerage fees, directors’ fees, attendance fees, and any other payments for services (7% applicable rate).

A company in Qatar obliged by law to withhold tax for payments made to suppliers abroad shall remit the amount to the tax department before the 16th day of the following month. Failure to do so will subject the company to a financial penalty equal to the amount of tax withheld, in addition to the withholding tax due.