How can an Umbrella Company Help with Contracting in Qatar?
Most freelance workers aren’t superheroes who successfully tackle these issues all on their own. There are companies who specialize in helping workers make the most out of their contracts.
They’re called Umbrella Companies (or, contractor management companies).
Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.
Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts in Qatar. Even better, most are experts in Qatari and expat tax law, meaning they’ll also help you optimize your earnings in Qatar.
Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.
Can I Organise My Taxes and Work Permit Myself?
Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for Qatar.
If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.
Also, are you familiar with the intricacies of the tax system in Qatar, as well as your own country’s laws on overseas earnings? If so, good on you!
However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in Qatar and your home country can seem like full-time work in itself.
A Contractor’s Guide to Taxes in Qatar
One of the most consistently challenging aspects of contracting in Qatar is keeping up to date with the country’s tax system. Currently, no tax is imposed on employment income and only income from a business is taxable.
As well as paying tax in Qatar, you might also still be eligible to pay some tax in your home country. Understanding and keeping up to date with changes in the legislation behind this can be a challenge.
How do I calculate my taxable income in Qatar
Income from a business is taxable in Qatar, meaning if you are self-employed, you are required to file and pay taxes.
Do you know much about Qatari Tax Law? Does Qatar have a tax treaty with your home country? You will need to find out or find someone who can help!
Tax Filing as a Contractor in Qatar
| When Do You Need to Lodge Your Tax Return? | N/A |
| Tax Filing Deadline | N/A |
| Can you file it online? | Yes, https://www.mof.gov.qa/en/MinistryProjects/Pages/TAS-project.aspx |
How to File Taxes in Qatar as a Contractor
There are no taxes on employment income in Qatar. Taxes on business income can be filed on the Qatari Ministry of Finance’s Tax Administration System.
Tax Figures in Qatar
| Currency | Qatari Rial (QAR) |
| Tax-free Threshold in Qatar | N/A |
Tax Residency in Qatar
When do you become a tax resident in Qatar
You become a tax resident in Qatar when:
You become a tax resident in Qatar when:
- You have a permanent home in Qatar;
- You have been in Qatar for more than 183 consecutive or separate days during any 12-month period;
- Your centre of vital interests is in Qatar; or
- You have a valid residence permit issued by the registry.
Residency is irrelevant for income tax purposes.
Does the 183 day rule apply in Qatar
Yes
Am I taxed on my global income in Qatar
You are not taxed on your global income in Qatar.
Can you set up your own Limited Company in Qatar?
| How long does it take to set up | 8.5-9.5 days |
| How much does it cost | QAR14,870; QAR24 for the first 2 shareholders + QAR9 for each additional shareholder; QAR500-5,000 (Commercial Registration); QAR50 per sq. m (signage license) |
| Is it easy? | Starting a Business Rank: 89/190 (Source: World Bank) |
Tax Calculator in Qatar
If you are a contractor and want a calculation on your tax and net retention in Qatar, we can supply it to you free of charge.
Using an Umbrella Company for Income Tax in Qatar
Contractors in Qatar are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Qatari umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).
The companies are experts in Qatari taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Qatari tax office or tax department directly including processing your tax refund if you are eligible.
How We Can Help You with Tax in Qatar
We work with numerous umbrella companies in Qatar, many of whom are experts in tax and immigration laws. If you have any questions about tax in Qatar, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Qatari work permit.
Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Qatar but without the overhead of directly dealing with the Qatari tax authorities. Get in touch with us today for some reliable advice on tax in Qatar!
A Contractor’s Guide to Work Permits in Qatar
Immigration is one of the primary concerns for any contractor hoping to start working in Qatar. Permanent employees will find it easy to get their Qatari work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer.
The Qatari work permit, known more commonly as the Work Residence Permit, is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Qatar is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.
How Does an Umbrella Company Work?
Most people want to do their work, earn their money and enjoy their spare time without taking on loads of admin in a new country. That is why an umbrella company can help.
When you’re working through an Umbrella Company, you’ll essentially be outsourcing the admin and tax issues to specialists.
While the umbrella company will charge a fee, you’ll likely end up saving more money in the long run: you’ll be able to focus on your work, expertly reduce your tax liability, and comply with all laws and regulations in Qatar (which means avoiding fees, fines, or even worse penalties).
How Can We Help You?
There’s a huge variety of Umbrella Companies with different specialities and advantages in Qatar. How do you find the right one for your circumstances?
We work closely with Umbrella Companies all throughout Qatar and match contractors with the right company for them. If you’ve already secured a contract in Qatar, we can help you find your best match (for free). Or, we can simply give you feedback on your situation (for free).
