- May 20, 2021
- Posted by: Ajmal
Qatar Tax law stated that any business activity carried out in the state of Qatar will be subject to corporate or withholding tax. According to the income tax law in Qatar, an “activity” has been defined as any occupation, service, trade, profession, or the execution of a contractual agreement, or any other business for generating a profit. Income tax is levied on foreign partners whether they operate through local companies, local branches, permanent establishment or in a joint venture with foreign enterprises.
The Gregorian calendar is employed for Qatar income tax purposes. However, a taxpayer may apply to prepare his financial statements for a twelve-month period ending on a day other than 31 December if the company has not been established on the 1st of January. The first accounting period may be for more than twelve months. However, it should not be less than six months nor more than 18 months.
A taxpayer should maintain his accounting records in Qatari Riyals as long as there is no permission from the tax department to use a foreign currency.