Feb 28 2021 | Parker Russell global News

Wholly or partially foreign owned entity which derives income from sources in Qatar is taxable in Qatar. Currently, no corporate income tax is levied on a corporate entity that is wholly owned by Qatari nationals and GCC nationals resident in Qatar.

Wholly or partially foreign owned entity which derives income from sources in Qatar is taxable in Qatar. Currently, no corporate income tax  is levied on a corporate entity that is wholly owned by Qatari nationals and GCC nationals resident in Qatar. Taxable income generally is subject to a flat  rate of 10%, with certain exceptions available. Let's take a moment and get to know the important aspects in connection with submission of corporate income tax returns in Qatar.

What is a corporate tax return in Qatar?

It is a declaration or statement filed with the tax authorities regarding the taxable income from Qatar and the related information.

Who is required to pay tax returns in Qatar?

An entity wholly or partially owned by foreign nationals or companies are required to file a corporate tax return in each year with General Tax Authority.

What is the period for filing the tax returns?

Four months since the end of company's accounting period is the recommended time period for filing the tax returns. Qatar follows calendar year as financial year and the deadline to file the corporate tax return is April 30th of each year.

How to file the tax returns?

It is now filed easily in digital mode. The tax returns can be filed online through dhareeba, tax portal in qatar, www.dhareeba.qa

What to do after filing the tax returns?

a)    Check if all the information you entered are right.

b)    Correct any wrongly entered details.

c)    Pay if any pending amount remains.

d)    Keep 10 year records of financial statements and income tax returns.

e)    In case any requests come up from general tax authorities, clarify them and provide any extra information if needed.

What will happen in case a taxpayer fails to file tax returns?

Failure in paying the tax returns can bring exorbitant penalties to the taxpayer. It can result in a penalty of QR 500 each day of delay upto a maximum of QR 180,000. Beyond this, a penalty of 2% on the tax due amount for each month will be imposed, not exceeding the amount of tax due.

These are some important aspects related to submitting corporate tax returns in Qatar. Submit corporate tax returns online without delay and enjoy better compliance.