All companies in Qatar which are carrying out any business activity in Qatar must register as a taxpayer with General Tax Authority (GTA) and get the tax card within 60 days of either (i) the commencement of activities or (ii) the date of registration with the Commercial Register of the Ministry of Commerce and Industry. A penalty of QR20,000 ($5490) may be imposed for failure to register with the GTA or to maintain a valid tax card. Al Ansari Auditors can help you to complete your tax registration with GTA.
Under the state of Qatar tax regime, taxpayers are required to submit an annual income tax return and pay the tax that is due by the end of the fourth month after the company’s financial year-end. Entities wholly owned by Qataris and other GCC nationals are exempt from corporate income tax, but are required to file tax returns and audited financial statements with the tax authorities if their capital is at least QR2m ($549,000) or if their annual revenue is at least QR10m ($2.7m). The GTA has planned the introduction of a new online tax management system in 2020, called Dhareeba, with the aim of achieving complete automation of the tax payment and management process. Dhareeba enables online registration, filing of tax returns, payment of taxes due and progress tracking. Qatar Tax law provides that any business activity carried out in Qatar will be subject to tax. An “activity” has been defined as any occupation, profession, service, trade or the execution of a contract or any other business for the purpose of making profit. Income tax is levied on partnerships and companies operating in Qatar whether they operate through branches or in partnership with foreign companies.
The Gregorian calendar is used for Qatar income tax purposes, but a taxpayer may apply to prepare his financial statements for a twelve-month period ending on a day other than 31 December. The first accounting period may be more or less than twelve months, but it should not be less than six months or more than 18 months. A taxpayer should keep his accounting records in Qatari Riyals unless permission is obtained from the tax administration for them to be kept in a foreign currency.
In addition to tax compliance services, we provide tax consulting services to assist you in developing and implementing tax solutions to minimize the impact of tax on your business transactions. We offer you practical solutions to address your tax needs and in depth knowledge of Qatar tax requirements. With our tax professionals, we are in unique position to deal with the complexities and peculiarities of the Qatari tax system and also help you to meet the challenges of an increasingly sophisticated market.