Go Back  British Expats > Living & Moving Abroad > Middle East
Reload this Page >

taxation in Qatar and in your homecountry

taxation in Qatar and in your homecountry

Old Nov 27th 2013, 7:44 am
  #1  
BE Enthusiast
Thread Starter
 
Joined: Nov 2013
Posts: 356
primularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond repute
Question taxation in Qatar and in your homecountry

Hallo to anyone, we are considering moving to Doha from Italy and, in evaluating if it is economically worthy we need to have some information about taxation. Questions are:

1) how is the taxation system in Qatar: I've read that salaries for expats are tax free, but I cannot believe it. Is it true? That means that what they offer you as gross salary is what you really get?

2) when you return to Europe, will your money saved from Qatar be subject to taxation of your country as if you had earned it in your country of origin?
What is your experience?

Thank you very much
primularossa is offline  
Old Dec 1st 2013, 9:51 pm
  #2  
BE Enthusiast
 
Joined: Jan 2010
Posts: 605
gottheTshirt is a name known to allgottheTshirt is a name known to allgottheTshirt is a name known to allgottheTshirt is a name known to allgottheTshirt is a name known to allgottheTshirt is a name known to allgottheTshirt is a name known to allgottheTshirt is a name known to allgottheTshirt is a name known to allgottheTshirt is a name known to allgottheTshirt is a name known to all
Default Re: taxation in Qatar and in your homecountry

Originally Posted by primularossa View Post
Hallo to anyone, we are considering moving to Doha from Italy and, in evaluating if it is economically worthy we need to have some information about taxation. Questions are:

1) how is the taxation system in Qatar: I've read that salaries for expats are tax free, but I cannot believe it. Is it true? That means that what they offer you as gross salary is what you really get?

2) when you return to Europe, will your money saved from Qatar be subject to taxation of your country as if you had earned it in your country of origin?
What is your experience?

Thank you very much
There is no income tax to pay in Qatar. Salaries in Qatar are tax free. The tax you pay in Italy depends on the tax rules in Italy.
gottheTshirt is offline  
Old Dec 2nd 2013, 9:15 am
  #3  
BE Enthusiast
Thread Starter
 
Joined: Nov 2013
Posts: 356
primularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond reputeprimularossa has a reputation beyond repute
Default Re: taxation in Qatar and in your homecountry

Originally Posted by gottheTshirt View Post
There is no income tax to pay in Qatar. Salaries in Qatar are tax free. The tax you pay in Italy depends on the tax rules in Italy.
Than you very much for your answer. Tax rules in Italy are quite complicated to read and to apply. This is why I asked for direct experience.

Qatar is not in the "black list" of "fiscal paradises (like Caiman, Virgin Islands and so on) and this is why I asked to confirm that salaries are not taxed.

In Italy, like in many other European countries I suppose, there is the regime of double taxation unless there are agreements between states for not taxing twice a worker.

If the worker is abroad for most of the year, he is taxed according the rules of the guest country (i.e. nothing in Qatar). But I know of people who have been taxed in Italy, even if they work (or have been working) abroad, just because they have come back after some years, or because they kept a house in their home country or because the family lives in Italy........

Is there anyone who has a direct experience in an EU country?
thanks
primularossa is offline  
Old Dec 2nd 2013, 10:20 am
  #4  
Just Joined
 
numbercruncher's Avatar
 
Joined: May 2007
Posts: 13
numbercruncher is an unknown quantity at this point
Default Re: taxation in Qatar and in your homecountry

In order to incur personal income tax in Italy, you either
a) generate income from an Italian source (in most cases this would refer to employment income and/or capital gains) and/ or

b) be considered a tax resident for Italian income tax purposes

Since you would be relocating to Doha, a) does not seem to apply. In order to figure out whether you are considered to be a tax resident for Italian income tax purposes you typically must meet one of the following two criteria:
a) have a life centered in Italy
b) be registered in the Italian Population registry for more than 183 days

Assuming you will
a) not maintain a permanent residence/ establishment in Italy (which is not rented out) and b) your entire family (grandma & granddad not included ...) will relocate to Qatar, and
c) you will not be registered in the Italian Population registry for more than 183 days

than you should not be ok.

Please note that typically Italian source income (rental property, stocks portfolio etc.) will be subject to Italian personal income taxation, even if your employment income is not, since it is derived from a Qatari source.

There appears to be a double tax agreement (DTA) in place and operational between Italy and Qatar, which follows the standard OECD format. As such it stipulates a 'right to tax' for the state in which you spend more than 183 days (183 day rule) a year.

Hence, if you choose to maintain a permanent residence in Italy, which is not rented, but available for your personal use, for instance as family retreat during the summer months, I would suggest you keep close track of the number of days you spend in Italy, to ensure you are prepped in case the Italian IRS would like to discuss your tax status at some stage, which can be a couple of years down the road upon your return to Italy.

In any case, I suggest you speak with a local Italian tax adviser in order to corroborate the above.

Enjoy Qatar.
numbercruncher is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.