In line with the Circular No. 2 of 2021, Qatar`s General Tax Authority (GTA) announced that all legal entities with a commercial registration or a tax card must submit their income tax returns through the Dhareeba portal (online).
It is important to differentiate between the standard tax return model and the simplified tax return model which will be used for filing purposes.
The simplified tax return model is exempt from tax which applies to legal entities owned by nationals of the State of Qatar or citizens of the Gulf Cooperation Council. It applies to legal entities whose share capital is less than QAR 1.00 million (USD 275 thousand) and whose revenue is less than QAR 5.00 million (USD 1.35 million) per year. The GTA has granted a four month extension for the submission of the simplified tax return.
The circular states that a non-compliance with the policies will result in a financial penalty of QAR 500 (USD 135) for each day of delay up to a maximum of QAR 180 thousand (USD 49.30 thousand). It is in line with Article 24 of the Income Tax Law.
Further, the country is gearing up to implement the Value-Added Tax (VAT) laws. All legal entities have been advised to get VAT ready in order to avoid complications when the new system kicks in.
The implementation of VAT will be an additional source of income for the government of the State of Qatar.
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