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Planning on Watching the World Cup Live in Qatar? Get to Know the Tax Policy First

Friday, 25 November 2022

Planning on Watching the World Cup Live in Qatar? Get to Know the Tax Policy First

Qatar is currently in the world's spotlight, for hosting the 2022 World Cup. A total of 32 countries, including the host national team, took part in the quadrennial international football tournament.

Thus, it is estimated that there are thousands of supporters from 31 countries or other national teams participating in the World Cup visiting the country on the Arabian peninsula.

In fact, the number could be even more significant if we count football fans from other countries. Because football is the most popular sport on this planet.

Therefore, many people, including Indonesia, don't want to miss the football party that takes place there.

A number of Indonesian celebrities and football fans are reportedly willing to spend money to fly to Doha and watch the 2022 World Cup firsthand.

If you are interested in following in their footsteps and intend to come directly to Qatar, then it's a good idea to find out what needs to be prepared. One of them is to equip yourself with complete information about Qatar. Among them, is information related to the tax policy.

First, you need to know that the tax system that applies in Qatar is territorial. It means that every person whether domiciled there or not will be taxed.

Income Tax

Quoting from the official website of the Qatar tax authority, the amount of income tax charged is 10% for domestic taxpayers, both entities and individuals. However, not all individual income is taxable.

Income originating from the salary, wages, and benefits of an employee is not subject to tax. Meanwhile, the revenue of people who run a business in Qatar or only those who are self-employed are subject to income tax.

Similar to the income of companies or entities. Not all companies are subject to income tax. For companies engaged in the oil and gas sector, especially those whose ownership is controlled by government or public institutions, different rates are imposed.

Withholding Tax

Immigrants or non-residents of Qatar will be subject to income tax through a withholding tax mechanism of 5% of the value of income.

The withholding tax is carried out by individuals or institutions that are legal entities in Qatar that use services or provide income.

Excise Duty

The Qatari government imposes duties on a number of products such as tobacco, carbonated drinks, energy drinks, and specialty goods. The aim is to reduce the consumption of these products.

The excise duty rate applicable in Qatar is quite high, namely 100% for tobacco, 50% for carbonated drinks, 100% for energy drinks, and special goods subject to 100% excise.

The high rate of excise duty in force will have an impact on the selling price of these products. Because excise duty also applies as a consumption tax that is charged to the final consumer.

VAT-Free Country

Interestingly, Qatar is currently one of the Arab countries that has not imposed a tax on goods and services in the form of Value Added Tax (VAT).

This is an added value for anyone who wants to visit Qatar as travelers will not be taxed when buying a product.

So, you don't need to worry about VAT refunds at the airport when you return to your country of origin.

For information, several other Arab countries that are members of the Gulf Cooperation Council (GCC) countries have actually started imposing VAT, such as Saudi Arabia, the United Arab Emirates (UAE), and Oman.

The government of Qatar, which is also part of the GCC, has actually drafted a VAT bill. However, until now it has not been implemented yet.


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