Qatar Payroll Outsourcing, Payroll Software and Employer Of Record (EOR) services.
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QATAR
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Qatar Payroll and Employer of Record: Employment Contracts
- Before working in Qatar, foreign employees will require both a work permit and a resident permit.
- The employment of foreign personnel in Qatar is a somewhat complicated process. To begin the procedure, the firm must register with the Ministry of Interior’s Immigration Department. They will not be able to apply for a work visa until the company has completed this process. The company will be required to produce many papers as the employer, including a copy of the trade license. The company will be issued an Immigration Card as well as a Representative Card if the application is approved.
- Following that, the firm must apply for a block of work visas for all of the expatriates it intends to hire. The application must be completed in Arabic, and must declare the total number of foreign employees, their employment positions, and their nationalities. The Ministry of Labor will provide approval.
- After the work permits are approved, the organization must apply for employment visas for each foreign worker. The documentation indicated in the previous section must be presented to the Ministry of Labor for each employee.
- Employees can go to Qatar once they have received their work permits. The firm must apply for the employee’s residence permit within seven days of their arrival. The necessary documents are specified in the preceding section and must be submitted to the Ministry of Labor.
- After receiving the residency permit, the employee may begin working for your firm in Qatar. These permissions allow the individual to work exclusively for the organization. Permits can be renewed on an individual basis by the firm.
- The organization should make sure that all staff are aware that they must carry their ID and any necessary visas at all times. Employees may be required to present documents if the firm is inspected by labor inspectors.
PAID TIME OFF
Annual Vacation
Annual Leave – This is used up during a year and is restored the following year. The following are the specific yearly leaves that can be taken with full pay:
- Eid El-Fitr — three days off from work
- Eid Al-Adha — three days off from work
- Independence Day is equal to one working day.
- Extra three working days — decided by the employer
- Employees who have been with the company for at least one year but less than five years are entitled to three weeks of yearly leave.
- Employees who have been with the company for more than 5 years are entitled to 4 weeks of yearly leave.
- An employee is also entitled to a fraction of a year’s leave based on his or her term of service.
Sick
Sick leave is only granted to employees who have been with the company for more than three months. Employees should be aware that in order for sick leave to be accepted, a medical certificate and approval from the employer are required. If the employee took his or her sick leave during the first two weeks, he or she is entitled to full reimbursement for the days used. If the employee takes sick absence for the next four weeks, he or she is entitled to half pay for the days taken. If the absence is prolonged for another six weeks, the employee will not be paid unless he or she returns to work, resigns, or is dismissed.
Maternity
If a female employee has worked for the firm for a year, she is entitled to 50 days of maternity leave. Up to 15 days before the delivery, and at least 35 days following the birth. Women can take unpaid or yearly leave to work extra hours.
Paternity
Although there is no official paternity leave, many employers provide dads with 3 to 5 days of paid leave.
Family
N/A
National Holidays
There are in total 10 paid public holidays.
Other Paid Time Off
- Leave for Eid El-Fitr (3 working days)
- Eid Al-Adha vacation (3 working days)
- Leave for Independence Day (1 working day)
- The employer will specify three working days
- If a Muslim employee wishes to make a pilgrimage to Mecca, he or she may be eligible to a one-time pilgrimage leave of 20 days in Qatar
STATUTORY EMPLOYEE BENEFITS
Unemployment
N/A
Workers Compensation
N/A
Social Security
Employers must provide social insurance to Qatari workers but have no responsibility to do so for employees of other nationalities.
Retirement
Expats are not covered by Qatar’s state pension scheme.
The Qatari state pension plan gives benefits to males aged 60 and up and women aged 55 and up who have paid 15 years of payments. The minimum State pension pay-out is 75% of the worker’s insured gross monthly wages, with a maximum of 100%.
Health
- To get basic medical services in Qatar, all non-Qatari nationals and tourists must have private health insurance for the duration of their stay.
- Employers must enrol non-Qatari workers and their dependents in the required health insurance plan through contracts with insurance providers registered with the MOPH.
- Sponsors of expatriates in Qatar, such as the recruiter, are subject to the same duties to offer minimum health insurance coverage.
- When issuing or renewing a residence visa, employers must demonstrate that their employees are covered by the statutory health insurance plan. Instead of the present requirement for persons over the age of 60, basic health insurance will be required for getting any type of permission or visa.
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
N/A
Retirement
Private retirement/pension funds are available as options in Qatar.
Health
Private healthcare is available in Qatar.
Insurance
Private life insurance is available in Qatar.
PERSONAL INCOME TAX
Tax Year
Same as a calendar year.
Tax Tables
Salaries, wages, and allowances received by working persons are not subject to income tax.
Taxation Method
Qatar has a territorial taxation system, which implies that an individual is taxable in Qatar if he or she earns qualified Qatar-source income, regardless of where they live. Salaries, wages, and allowances received by working persons are not subject to income tax. If a self-employed person earns qualified income in Qatar, he or she may be liable to income tax.
Double Taxation
Qatar has multiple double tax agreements (DTA) with other countries.
Residence Requirements
A natural person is considered as a resident in Qatar tax law if they fulfil any of the following conditions:
- Has a permanent residence in the State of Qatar
- Has spent more than 183 consecutive or separate days in the State of Qatar within any 12-month period,
- Has one’s centre of important interests in the State of Qatar
Payroll Calendars
Payroll is usually done once a month in Qatar. Salary payments must be made at least once a month by the employer.
Rebates & Tax Credits
Qatari natural individuals residing in the State of Qatar are free from income tax on their gross income, including their shares in the earnings of legal businesses.
Health Insurance
To get basic medical services in Qatar, all non-Qatari nationals and tourists must have private health insurance for the duration of their stay.
Employers must enroll non-Qatari workers and their dependents in the required health insurance plan through contracts with insurance providers registered with the MOPH.
Sponsors of expatriates in Qatar, such as the recruiter, are subject to the same duties to offer minimum health insurance coverage.
When issuing or renewing a residence visa, employers must demonstrate that their employees are covered by the statutory health insurance plan. Instead of the present requirement for persons over the age of 60, basic health insurance will be required for getting any type of permission or visa.
Unemployment
N/A
Social Security
Employers must provide social insurance to Qatari workers but have no responsibility to do so for employees of other nationalities.
PAYROLL ELEMENTS
Income
Salaries, wages, and allowances received by working persons are not subject to income tax.
Bonuses
13-month payments are not required by law. Employers have the option to give out incentives at their discretion.
Allowances
Employers must additionally pay food and lodging allowances of at least 300 QAR if they do not give them directly to employees.
Benefits in Kind
Benefits in kind are simple payments in kind and company subsidies offered for workers’ personal or social needs. Also, depending on its purpose, money provided to employees may be considered a kind benefit and may be excluded from tax and premium contributions.
Investment Income
Any chargeable profits on capital asset sales are taxed as regular income. There are certain restrictions in place for gains realized on the sale of real estate. The GTA is focusing more on capital gains produced by non-residents.
According to the Regulations, capital gains tax returns must be filed within 30 days of the asset’s sale or the contract’s conclusion, whichever comes first.
Retirement Funding
Expats are not covered by Qatar’s state pension scheme. The Qatari state pension plan gives benefits to males aged 60 and up and women aged 55 and up who have paid 15 years of payments. The minimum State pension pay-out is 75% of the worker’s insured gross monthly wages, with a maximum of 100%.
Health Insurance
- To get basic medical services in Qatar, all non-Qatari nationals and tourists must have private health insurance for the duration of their stay.
- Employers must enrol non-Qatari workers and their dependents in the required health insurance plan through contracts with insurance providers registered with the MOPH.
- Sponsors of expatriates in Qatar, such as the recruiter, are subject to the same duties to offer minimum health insurance coverage.
- When issuing or renewing a residence visa, employers must demonstrate that their employees are covered by the statutory health insurance plan. Instead of the present requirement for persons over the age of 60, basic health insurance will be required for getting any type of permission or visa.
Risk Insurance
N/A
Taxable Income
Salaries, wages, and allowances received by working persons are not subject to income tax.
Allowable Deductions
- Employee expenses (including salaries, wages, gratuities, and other end of service benefits).
- Losses incurred as a result of the selling of assets.
- Rents.
- Premiums for insurance.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
Salaries, wages, and allowances paid to employees are not subject to personal income tax (PIT) in Qatar.
Unemployment
N/A
Social Security
Employers must provide social insurance to Qatari workers but have no responsibility to do so for employees of other nationalities.
Workers Compensation
N/A
ADMINISTRATION
Income
Salaries, wages, and allowances received by working persons are not subject to income tax.
Payroll Taxes
Salaries, wages, and allowances paid to employees are not subject to personal income tax (PIT) in Qatar.
Unemployment
N/A
Social Security
Employers must provide social insurance to Qatari workers but have no responsibility to do so for employees of other nationalities.
Workers Compensation
N/A
Statutory Benefits
Statutory benefits are mainly for the citizens of Qatar yet it is mandatory for companies who employ expatriate workers to provide the equivalent.
Employee Benefits
Certain benefits are mandated by law . Qatar has 10 public holidays on which employees are excused from work, and a minimum of 15 days of leave per year. Employers are not obligated to pay for sick leave. Maternity leave is 50 days and paternity leave is not mandatory in Qatar but employers can offer it.
LEGISLATION
According to the Qatari constitution, Sharia is a major source of Qatari legislation. Sharia law is used in family law, inheritance, and a variety of criminal offenses (including adultery, robbery and murder).
STATUTORY BODIES
- The Legislative Authority
- The Executive Authority
- The Judicial Authority
