How to establish a successful business in the robust Qatar economy

Qatar has harnessed its position as a lucrative investment destination for companies and individuals from all over the globe.

In brief

• The Qatari economy became economically resilient by taking measures to overcome the negative effects of the regional and global challenges
• The Qatar National Vision (QNV) aims at transforming Qatar into an advanced country by 2030
• Qatar has two independent taxation frameworks: State Income Tax Law and QFC Tax Regulations

Doing Business in Qatar 2022 Guide is a comprehensive guide jointly produced by Invest Qatar and EY-Parthenon teams. This guide is intended to provide a thorough overview of the business ecosystem in Qatar and highlights unique investment opportunities in the country. It consolidates and presents important information for potential investors, and provides a convenient medium to understanding the essentials of doing business in Qatar.

Pursuing a progressive and multi-sectoral development plan, backed by ground-breaking reforms and a business-friendly ecosystem, Qatar has harnessed its position as a lucrative investment destination for companies and individuals from all over the globe. Ranked world’s safest country and the third wealthiest country globally, the LNG exports leader has a stable economy with nearly 1% inflation rate over the past 10 years. to realize the objectives

Complementing the national efforts to realize the objectives of Qatar National Vision (QNV) 2030, the government has launched multiple strategic development projects, creating a competitive business environment for potential investors.

QNV 2030: driving economic growth beyond 2022

The Qatar National Vision (QNV) aims at transforming Qatar into an advanced country by 2030, capable of sustaining its own development and providing for a high standard of living for all its people and the future generations to come. In July 2008, the Qatari government published a formal outline of QNV 2030. The Vision was followed by the National Development Strategy, which outlined development strategies to be employed by government ministries in order to ensure that they are working toward QNV 2030 in an efficient manner. The Vision provides a framework within which national strategies and implementation plans are developed and is based on four interrelated principles. These four pillars are human development, social development, economic development and environmental development.

Economic development is an essential part of QNV 2030. Achieving that objective hinges on Qatar’s ability to create a balance between an oil-based and a knowledge-based economy, helping diversify the country’s economy and guaranteeing a stable and sustainable business environment.

QNV 2030 targets to achieve that balance through sound economic management, responsible exploitation of oil and gas, and suitable economic diversification.

Establishing a business in Qatar

Entities interested in doing business in the State of Qatar may choose one of the following forms of registration, depending on their preferences or nature of business:

• Limited liability company (LLC)
• Temporary branch
• Permanent branch
• Trade Representation Office (TRO)

Depending on the industry of the registering entity, a business owner may choose one of the business platforms to register with them, that way becoming eligible for multiple benefits ranging from infrastructure use to tax incentives.

The following platforms have been established in Qatar to provide support to investors:

• Register in the Qatar Science & Technology Park (QSTP)
• Register in the Qatar Free Zone Authority (QFZA)
• Register in the Qatar Financial Centre (QFC)
• Register in Industrial Zone, Logistics or Warehousing

Taxation in Qatar

Qatar operates a territorial taxing regime. This means that only revenues derived from Qatar sources and from activities performed within Qatar are taxable in Qatar. Qatar GTA governs tax policies and frameworks. Qatar has two independent taxation frameworks:

• State-registered entities are subject to the State Income Tax Law.
• Entities registered in the QFC are subject to the QFC Tax Regulations.

The standard tax rate on profits is 10% under both frameworks. However, there are important distinctions between the two frameworks, most notably that the QFC does not apply withholding tax or contract tax retention. Qatar has ratified the GCC value-added-tax (VAT) Framework Agreement and is working on VAT implementation initiatives with the aim of introducing VAT in the State of Qatar. Qatar introduced excise taxes in January 2019 on an initial range of products that are deemed harmful to the health of its residents. A 50% rate applies to aerated soft drinks. A 100% rate applies to energy drinks, tobacco and alcohol.

For more information read our Doing Business in Qatar 2022 Guide.