Do you have to pay 3% withholding tax on gross salary earn?
I just arrived in Doha and I'm working as a contract staff at a local company. Because I'm on contract vs a permanent employee, I had 3% deducted from my pay as retention or withholding tax. I thought Qatar is tax free? And withholding taxes only applies to companies, no? I also have a Qatar ID sponsored by the company so practically, I'm also a resident. So question is why do I have to pay the 3% tax? Is this a HR error and if not, where can I find out more?
Many thanks in advance for your advise.
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I suspect someone in HR screwed up because the company don't normally sponsor consultants for resident permit. And hence had to withhold due to residency status. But I need confirmation and HR is no help.
Thanks in advance
I am surprised at this.. There is a withholding tax, but that should be paid by the employer and not the employee (see link)
I don't think it applies to you anyway.. I would contact the labour court - but first talk to your HR and get clarification
http://www2.deloitte.com/content/dam/Deloitte/xe/Documents/tax/tax_new-horizonz-qatar-seminar_122014.pdf
This is the first time I heard of such a thing in the ME. I find it difficult to believe but other QLers who know the rules and regulations of the country may be able to answer this query of yours.