• The Transfer Pricing requirements include four tiers of compliance: (i) Transfer Pricing Form/Questionnaire to be provided with the Tax Return, (ii) Masterfile, (iii) Local file and (iv) Country by Country Reporting requirements (already introduced in 2018/2019).
• Preparing TP documentation (Local File and Master File) by the time of filing the tax return for the period of occurrence of the respective related party transaction(s) or at any other date that the GTA may specify otherwise. Master file is the responsibility of the parent company at the group level to provide the data to the local entity.
• The Local File and Master File shall be established according to the OECD Guidelines. The GTA did not establish a specific format/template for this purpose and to the extent that the following conditions are met:

Who needs taxation service?

All entities (Taxpayers) require taxation services in Qatar; in the previous income tax law, Qatari entities that have a turnover less than QR 10,000,000 and a capital amount less than QR 2,000,000 were not required to submit an audit financial statement and file a tax return. However, the new Income Tax Law and its Executive Regulation and related circulars in which they came into force in 2020 require all entities, including companies owned 100% by Qatari citizens or GCC citizens resident in Qatar, to file a tax return.

What are the taxation laws in Qatar?

In Qatar, legal and natural persons must comply with the Income Tax Law 24 (2018) and its Executive Regulation and related tax circulars issued by the General Tax Authority. Those will allow companies to understand Tax and its implication on the business. Business Tax service is becoming indispensable, and all foreign and local investors in Qatar have to approach tax advisors before they proceed with any business to avoid any tax business implication.

What is the benefit of abiding by Qatar Taxation?

Companies that comply with business tax law in Qatar will enable them to streamline the process in all governmental entities. Having a clear tax in your tax file at the General Tax Authority will expedite the GTA process during any taxpayer request. However, companies that do not abide by the Income Tax Law and its Executive regulation and related circulars would lead to tax penalties and additional tax.

Business Tax advisors like Antonio Galeb and Partner, will advise and answer any query taxpayer may raise to prevent its entity from any tax burden. Therefore, we emphasize appointing a business tax advisor because it becomes requisite for all investors, foreign and local Qatari and GCC citizens. If the Qatari and GCC resident citizens do not comply with the Income-tax and its Executive Regulation and related circulars, they will face a business tax impact that would lead to penalties similar to the penalties allotted to companies with foreign ownership share.

What are the steps involved in preparing tax submissions?

All entities including companies owned 100% by Qatari or GCC resident citizens must use the Dhareeba portal as a platform to communicate with the General Tax Authority. Dhareeba portal becomes requisite for all taxpayers to register on Dhareeba portal and get a Taxpayer Identification Number (TIN).

100% Qatari and GCC owned companies and resident in Qatar

• Exempted from paying Tax, but they must register at the General Tax Authority through The Dhareeba system.
• Must file a Simple Tax Return if the capital is less than QR 1000,000 and annual turnover is less than QR 5000,000 without an audited Financial Statements.
• Must file a tax return on an accruals basis if the capital is more than QR 1000,000 and annual turnover is more than QR 5000,000 accompanied with an audited Financial Statements prepared by an accredited auditor.

Qatari companies with foreign partners

• The foreign partner’s share in the profit is subject to Tax
• Can submit a simple tax return of the capital is QR 200,000 or less and the annual turnover is QR 500,000 or less.
• Must file a tax return on an accruals basis if the capital is more than QR 200,000 and annual turnover is more than QR 500,000 accompanied with an audited Financial Statements prepared by an accredited auditor.

How can we help you.

Antonio Ghaleb and Partner CPA have a qualified expert team and have more than 15 years of tax business experience in Qatar. We can advise by using the Income Tax law and its Executive Regulation and related circulars as a requisite Tax base to give any tax business advice. We can get information from the Dhareeba portal in which the General Tax Authority have uploaded tax business guidelines about the tax mechanism on the Dhareeba portal, including:

• Tax Accrual basis
• Simple income Tax Return
• Cash basis
• Capital Gain Tax
• Transfer pricing

Also, using the Dhareeba portal enables the taxpayer to understand what are the allowable expenses that he can use to deduct it from the taxable profit and what is disallowable to be deducted from the tax return. Not all business expenses are allowable to be deducted from the tax return while you can deduct from your financial statements because the taxpayer incurs these expenses. Therefore, getting business tax advice from a business tax advisor is requisite to ensure that the taxpayer abides by Qatar's tax law.

Our Clientele

Antonio Ghaleb and Partner CPA is a member of HLB International, which is an independent network. Our clients have different nationalities, including Qatari companies and foreign companies based in the USA, UAE, Lebanon, Europe, such as the United Kingdom, Germany, France, Italy, Netherland, etc. Also, there are branches to foreign entities that are based globally and operating in Qatar.