FAQs

There is no corporate income tax for entities wholly owned by Qatari and GCC nationals. However, if an entity is wholly or partially foreign-owned, its taxable income related to non- Qatar nationals are generally subject to a tax rate of 10%. Different tax rates may apply to companies with operations on oil, gas, government agreements, royalties, technical fees, interests, commissions, among others.

The application for tax card shall be accompanied by the following documents:

• Incorporation contract, statutes and bylaws for companies.
• Trade License and Establishment Card.
• Commercial Registration valid for at least 3 months.
• Partners’ ID / Passport or valid Commercial Registration (in case a Company has been registered and mentioned as Partner/Shareholder).
• A delegation to an auditor registered in the State to represent the company or the establishment before GTA.

A taxpayer is required to submit an income tax declaration to GTA within four months from the end of the accounting period. Hence, if the accounting period ends on December 31st then the taxpayer should submit by April 30th.

According to Law No. 24 of 2018 (“the New Income Tax Law”), there is a financial penalty for late filling of return. The taxpayer shall be subject to a financial penalty of QAR 500 per day of delay, with a maximum of QAR 180,000.

The taxpayer shall pay the tax due on the same day of filing the return.

For late payment of tax, the penalty is 2% of the tax due per month of delay or part thereof, up to the amount of tax due.

• The capital of the taxable entity in Qatar exceeds QAR100,000 or,
• The annual taxable income of the entity exceeds QAR100,000 or,
• In the case of a branch, if the head office is situated outside of Qatar.

Yes, if they qualify in either of the following:

• Their share capital is greater than or equal to QAR2,000,000; or
• Their gross revenue is greater than or equal to QAR10,000,000.

According to Qatar Commercial Companies Law No. 11 of 2015, 10% of the net profits of the company to a legal reserve until the amount of the legal reserve equals or exceeds half of the value of the capital of the company.

Taxpayers are required to keep and maintain accounting books, registers and documents pertaining to their activities in Qatar for a period of 10 years following the end of the taxable year to which the records and documentation are related, unless released from this obligation after meeting certain conditions as provided in the executive regulations of the law.

Wage Protection System (WPS) is a requirement for employers in Qatar to pay salaries of employees with local employment contract or Residence Permit through bank account and to submit monthly salary information to their bank. WPS is initiated by Ministry of Labour and Social Affairs and Qatar Central Bank to monitor the process of wage payments pursuant to the Labour Law.

At a minimum, the local employment contracts would in general be expected to include the employer name, registered place of employment, employee name, his/her nationality, his/her wage or salary, annual and other leave, type of work, end of service benefit, date of employment, and duration of the contract (if fixed).

The feasibility study is a process of analysing the factors needed to have a successful project, taking into consideration the market, competition, financial, legal, economic, technological, time schedule, risks, and other factors. A feasibility study looks at the viability of an idea with an emphasis on identifying potential problems.