Qatar Taxation (Dhareeba)

3. What shall be the first corporate tax return period, if the financial period is shorter or longer than 12 months?

• If the first financial year is shorter or longer than 12 months:
  • The first tax return covers the period from the start of operations to the first financial year-end.
  • The period should not exceed 18 months.

4. Are there any tax incentives or exemptions available for companies in Qatar, like relief for small businesses?

• Exemptions:
  • 100% Qatari-owned companies are exempt (except oil & gas).
  • Entities in free zones like QFC and QSTP often enjoy tax holidays or reduced tax rates.
  • Income from export activities may be exempt in certain cases.
• Small Business Relief:
  • Qatar does not have specific small-business tax relief programs, but Qatari nationals owning businesses can benefit from the general exemptions.

5. Are there any expenses that cannot be deducted or credited under the tax law? The following expenses cannot be deducted

• Fines and penalties (including traffic fines).
• Bribes or illegal payments.
• Personal or non-business-related expenses.
• Provisions that do not comply with GTA-approved methodologies.

6.Can the CEO's salary be claimed as a deductible expense for corporate tax purposes?

• Salaries of owners, directors, or executives (e.g., the CEO) can generally be deducted if they are:
  • Reasonable,
  • Reflect the actual services rendered
  • Properly documented through contracts and payroll.

7. Do we need to submit audited financial statements with the corporate tax return?

• Audited financial statements must be submitted with the tax return if:
  • The company's annual revenue exceeds QAR 500000.00
  • It is required as per the company’s license.

8. Are there any other important compliance requirements to be aware of?

• Maintenance of proper accounting records for at least 10 years.
• Submission of a tax card application within 60 days of starting business operations.
• Withholding Tax compliance (if applicable).
• Contract Reporting subject to some threshold requirements.
• Transfer price reporting subject to some threshold requirements.

9. What is the list of reports obligated to submit over the year alongside deadlines?

• Corporate Tax Return: Annual by 30th April.
• Withholding Tax Return: Monthly by the 15th of the following month.
• Quarterly financial reports (if listed on QSE).

10. What should I know about Capital Gain Tax and Withholding Tax - 5% ( can I use it as some benefit ) ?

• CGT: Gains on the sale of shares, assets, or property are generally subject to corporate tax.
• WHT (5%):
  • Applies to payments to non-residents for royalties, interest, commissions, technical services, etc.
  • Businesses can reduce costs through double taxation treaties (DTTs) that Qatar has signed with several countries.

11. Me as an owner and GENERAL MANAGER - What Salary can have maximum and Any restrictions?

• No specific cap exists on the GM's salary, but it must:
  • Be justifiable given the company’s size and operations.
  • Align with market rates to avoid scrutiny.
  • Be included in payroll and not appear as a direct owner's drawing.

12. Some of the Governmental bills have no Company's name on the Bill. Are they taxable?

• Expenses incurred without the company’s name on the bill may not be accepted as deductible. However they are deductible as long as it can be proved that these expenses are spent for your business purposes. Normally the government provides receipts for each payment and these receipts are fair enough to claim these expenses as deductible..