Qatar is a small country in southwest Asia that’s part of a peninsula in the Persian Gulf. The country borders Saudi Arabia and boasts a large population of expatriates that outnumber the country’s citizens. Expanding to Qatar is a great way to establish your company in the Middle East and form important business relationships.
However, expanding to a foreign country isn’t always easy. You have to set up your Qatar payroll, decide on a Qatar payroll option, and meet all of the country’s compliance laws. Globalization Partners can help you start working quickly without the hassle. As a global PEO, we’ll take on the risk of compliance and use our existing payroll to help you pay employees.
Taxation Rules in Qatar
Qatar’s taxation rules are simple for foreign countries looking to establish an entity in the country. There are no personal income taxes or individual social security taxes. However, the country does have a flat corporate income tax of 10% for most cases. Entities that are fully or partially foreign-owned by a non-Qatar company but get income from the country are subject to this tax.
Qatar Payroll Options for Companies
Since every company is different, you have different Qatar payroll options to choose from, including:
- Internal: Choosing to use an internal payroll can help you streamline the payroll process for your subsidiary. However, doing so usually works only for larger companies that have more resources and can hire a bigger staff.
- Remote: Other companies may choose to add their subsidiary’s employees to the parent company’s payroll. This remote option means employees from different companies will have separate laws you need to follow.
- Local payroll processing company: A local Qatar payroll processing company will outsource your payroll, but you’re responsible for worrying about compliance.
- Globalization Partners: Globalization Partners is the only outsourcing option that will handle your payroll and also shoulder the compliance. Choosing Qatar payroll outsourcing with us is meant to help you start working faster and more efficiently.
How to Set Up a Payroll in Qatar
Before you can set up your Qatar payroll, you have to set up a subsidiary in the country. It can take weeks or months to finally incorporate, however, delaying your plans to hire employees, pay them, and start working in the country. When you choose Qatar payroll outsourcing through Globalization Partners, you won’t have to establish a subsidiary before you start paying employees because you can use our entity.
Termination is one of the trickier aspects of operating internationally. We recommend adding entitlement and termination terms to all your employment contracts before hiring employees. In Qatar, you need to give employees 30-day notice of a termination if they have an indefinite contract and have worked for fewer than five years. The notification period is at least two months before the date of termination if they’ve worked for more than five years.
Payroll Processing Company in Qatar
If you’re planning an expansion to Qatar, we can make the process easier through Qatar payroll outsourcing. Contact us today for more information.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.