- July 17, 2021
- Posted by: Ajmal
When the Tax season starts at Qatar most of the companies become significantly busy in preparing the financial statements and relevant supporting documents for the auditor’s review.
Also, along with the financial statements, every company must arrange its books to comply with the Tax law in Qatar and submit Tax return or Tax declaration to the Tax department accordingly.
No one wants to pay a substantial amount of Tax; all companies want to save money to be able to develop the business and receive a considerable amount of dividend. Although companies have to follow International Financial Reporting Standards (IFRS) while preparing the financial statements; however, any transaction registered according to the IFRS in the books, and contradicts with the Tax law in Qatar, the same transactions have to be added back to profit during the preparation of Tax declaration or tax return. Corporate or Income tax 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. Corporate tax is levied on foreign partners whether they operate through local companies, local branches, permanent establishment or in a joint venture with foreign enterprises.