Setting up and managing payroll in Qatar
The Middle Eastern nation of Qatar has one of the highest levels of GDP per capita in the world. This economic strength is largely built on the country’s massive oil and natural gas reserves, but the government has made big strides in diversifying the economy in recent years. For these reasons, Qatar is an attractive destination for foreign investment and many companies look to establish a presence there.
If you are interested in expanding into Qatar, an important early step is likely to be hiring locally and setting up a payroll. This usually involves establishing an in-country entity, as well as adhering to the complex business and employment regulations that apply, all of which can be complicated by the language and cultural differences. This process can be long and difficult, potentially causing delays to your expansion and incurring unexpected expenses.
At Horizons, we specialize in providing Qatar payroll support services, offering organizations a way to outsource the time-consuming process of setting up a payroll. We offer flexible service packages for organizations that already have a registered entity in Qatar, as well as those that don’t.
If you have an entity in Qatar
If you have already established an entity for your organization in Qatar, we can offer outsourced payroll support to help you establish and manage your Qatar payroll. Additionally, we can provide full HR, contract, and legal compliance support so you don’t have to handle any of the complex administration.
This service is the perfect solution for any organization that already has an entity in Qatar but requires help with navigating the complexities of Qatari employment.
If you don’t have an entity in Qatar
If you don’t have an established entity in Qatar, you can access our Qatar subsidiary to act as your employer of record in the country. Through our entity, we can hire your employees and manage all of your in-country payroll, contracts, HR, and administration.
This flexible payroll service is perfectly suited to any organization looking to expand into Qatar with low risk and flexibility.
Simpler, more reliable expansion into Qatar with help from Horizons
Reliable Delivery
We guarantee that all payments will be on time, your data will be secure, and you can be up and running within just 48 hours.
An Established Presence
Our in-country subsidiary will act as employer of record, offering you a presence in Qatar for legal local employment.
Flexible Solutions
Our team will manage all of the admin, payroll, HR, and taxes, so you can focus on building your business in Qatar.
Up-To-Date Compliance
With the ever-changing Qatar employment laws, we’ll ensure you stay fully compliant at all times.
A Single Point of Contact
Our centralized service gives you a single point of contact, simplifying the entire in-country employment process.
Proven Global Expertise
Our in-house teams of payroll and HR experts have already helped dozens of organizations expand globally.
Qatar payroll guide
What are the tax and withholding rules in Qatar?
Employees in Qatar are not subject to any income tax. The corporate tax rate is 10% for most businesses, but there are some differences for certain companies, for example those operating in the oil industry.
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Pension
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10.0%
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Total Employment Cost
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10.0% |
| Pension |
5.0%
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Total Employee Cost
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5.0%
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Contractual rights and termination regulations
Workers in Qatar who have worked with their employer for at least a year are entitled to severance benefits. The severance pay is as follows:
- Three weeks of pay for every year worked up to five years of employment.
- Four weeks of pay for every year between six and ten years of employment.
- Five weeks of pay for every year between 11 and 20 years of employment.
- Six weeks of pay for every year over 20 years of employment.
The payment also includes a cost of living allowance.
Usually, employees who have been employed for less than five years are entitled to 30 days of notice when employers terminate their indefinite-term contracts, or two months for employees of more than five years.
How to establish a Qatar payroll
A key part of hiring and creating a payroll in Qatar is likely to be registering an official entity in the country. The administration procedures can be lengthy, complicated, and potentially very resource-intensive, so outsourcing the entire process can be an excellent way to improve efficiency.
At Horizons, our experts can set up and manage your payroll and all its administration so you don’t have to. We can also provide use of our Qatari subsidiary to act as your employer or record, so you can start hiring and expanding in Qatar even if you don’t have an established entity in the country.
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Your all-in-one solution for Qatar payroll outsourcing and Qatar expansion
Horizons’ Qatar PEO and employer of record services enable your business to quickly and compliantly begin trading in Qatar. This allows your business to commence operations in Qatar in as little as 48 hours, and has the potential to save you up to 82% in expansion costs, whether or not you have a legal entity in the country.
Our Qatar experts can also manage your organization’s payroll, expenses, and benefits in Qatar, along with HR duties and employment and tax compliance. As the only global PEO with an in-house recruitment team, we can also take care of the sourcing, hiring, and onboarding of your local workforce.
