Qatar accounting and tax services
Many international clients engage Tetra Consultants for Qatar accounting and tax services. Tetra Consultants will timely complete your firm’s financial statements, corporate tax returns and manage auditors on your behalf and without the need to travel. It is important to meet the deadlines stipulated by the Qatar Tax Department. Failure to comply will result in late penalties and fines.
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Annual accounting and tax considerations in Qatar
- You will be presented with the option to outsource your Qatar accounting and tax obligations to Tetra Consultants. Tetra Consultants will timely complete your firm’s financial statements, corporate tax returns and manage auditors on your behalf and without the need to travel.
- By outsourcing accounting and tax obligations to Tetra Consultants, you can reduce overhead costs while being ensured of timely reporting and filings. Our accounting team will provide you with an explanation of all the required deadlines and expectations before the start of the engagement.
- Thereafter, our team will prepare the required fillings in advance to ensure we meet all stipulated deadlines. Tetra Consultants will send you a weekly or bi-weekly update, ensuring that you are aware of upcoming deadlines.
Annual reporting requirements
- According to the Qatar Tax Department, it is mandatory for business owners partaking in businesses to file annual tax returns electronically and settle outstanding tax payments within 4 months of the end of the accounting period. Taxpayers are allowed to request an extension of the stipulated deadline. However, appeals and requests are strictly subjected to the approval of the Qatar tax authorities.
- Corporations who failed to meet the stipulated deadline of 4 months will be subjected to a late filing penalty on the tax due. Taxpayers who were unable to resolve outstanding tax payments in due time will be subjected to penalties as well.
Tax registration and Tax Card
- Business owners in Qatar should apply for a tax card and register with the Qatar Tax Department within 30 days from whichever is the earlier date:
- Receiving Commercial Registration
- 1st day of income realization from business activity
- Taxpayers who do not comply with the stipulated deadline will be imposed a monetary fine of QAR5,000.
Qatar Corporate Income Tax
- Resident companies in Qatar are subjected to one of the lowest corporate tax rates in the world of 10%. Furthermore, entities wholly owned by Qatari nationals and The Gulf Cooperation Council (GCC) nationals are exempted from any corporate income tax (CIT).
- As part of the government incentive to attract foreign direct investments, Free Zone companies are exempted from corporate tax for renewable 20-year periods.
- A company is regarded as a resident corporation if it maintains its registered office or significant place of management in Qatar.
- According to the Qatar Tax Department (QTD), Corporations with full or partial foreign ownership in Qatar must submit audited financial statements accompanied by the tax declaration to the QTD should the respective listed categories apply:
- Capital of taxable entity in Qatar exceeds QAR100,000
- Annual taxable income of the taxable entity in Qatar exceeds QAR100,000
- Head office is located outside of Qatar (Branch)
- The audited financial statements have to be signed by a Qatar certified auditor. Furthermore, the Qatar Tax Law mandates taxpayers to keep and maintain documentation relevant to business activities carried out in Qatar for a period of 10 years following the end of the taxable year.
- With accordance to the Tax Law, companies exempted from corporate tax obligations in Qatar are required to submit a corporate income tax returns along with audited financial statements should the respective categories apply:
- Share capital exceeds or equals to QAR 2,000,000
- Gross revenue exceeds or equals to QAR 10,000,000
- Corporations who failed to meet the requirements will be subjected to a penalty.
Value Added Tax
- The State of Qatar does not have any Value Added Tax currently. With reference to Qatar’s recent 2020 budget outline, the nation does not have any intentions to implement Value Added Tax. However, Qatar is set to launch a 5% VAT by 2021 in coherence with states of the Gulf Cooperation Council (GCC).
- According to Qatar Tax Laws, Qatar registered entities are obligated to withhold a percentage of certain payments made to non-residents. The withholding tax compliance falls within the responsibility of the Qatar entity.
- Generally, dividends are not subjected to a withholding tax irrespective, whether paid to residents or non-residents in Qatar.
- Royalties and technical fees paid to non-resident corporations are subjected to a 5% withholding tax.
- The amount of interests, commissions, brokerage fees, director’s fees and other payments for services carried out entirely or partially in the State of Qatar is subjected to a withholding tax rate of 7%.
- Qatar based corporations withholding taxes must remit withheld funds to the Qatar Tax Department within 16 days of the following month. Furthermore, taxpayers must file a withholding tax statement within the same stipulated deadline.
Other tax considerations in Qatar
- Qatar has signed more than 60 Double Tax Avoidance Agreements with other countries, minimizing tax obligations of businesses. Additionally, Qatar’s fast growing Double Tax Agreements is one of the most established and extensive in the GCC.