Income Tax (for company)

What is Income tax (for Corporate)?

Income tax (for Corporate) is an annual tax imposed on the total taxable income arising in the country during the previous tax year.

The tax is also imposed on some of the following incomes:

1 – Bank interest and returns earned outside the country, provided that they result from amounts arising from the taxpayer’s activity in them.

2 – Commissions due under agency, brokerage, or commercial representation agreements that have been made outside the country for activities carried out therein.

What are the financial books which the taxpayer should keep?

The taxpayer who carries out an activity in the state is obligated to keep the books and accounting records and the documents related to them and the documents confirming them, which are necessary for his activity following the accounting laws and standards in force in the state and in particular the following:

  • General journal.
  • General ledger
  • Inventory book.

Is there a specific period of time to keep the books, financial records and documents?

Yes, the taxpayer who carries out an activity in the State must keep the accounting books, records, and documents related to income tax for ten years.

What is the period during which the income tax (for Corporate) for the tax year should be filed?

The tax declaration stipulated in Article (11) of the Law shall be submitted by the resident and non-resident taxpayer who carries out an activity through a permanent establishment in the State of Qatar within four months from the date of the end of the tax year on the form prepared by the Authority for this purpose.

The tax declaration for capital gains shall be submitted on the form prepared by the Authority for this purpose٬ and this shall be within (30) thirty days from the date of concluding the contract or disposing of the assets, whichever is earlier.

Who is supposed to pay the income tax (for Corporate)?

The tax is imposed on the total taxable income arising in the state, realized by every natural or legal person who practices an activity in the state or earns income from it.

How does the Authority collect Income Tax (for corporate)

The tax due is collected according to the following:

  • Based on the declaration submitted by the taxpayer;
  • After the taxpayer agrees with the management decision on the objection
  • After notifying the taxpayer to respond to the decision
  • The expiration of the period stipulated in Article 17 of the Law without a response
  • Imposing the provisional retention of the taxpayer’s funds necessary to collect the tax and the financial penalties related to it, in cases where it is evident that the tax collection is subject to loss.
  • Taking measures of executive retention on the taxpayer’s funds necessary to collect the tax, if the decision to assess the tax and the financial penalties related to it becomes final, and it is not paid on the specified date.

What is the applicable tax rate?

A tax rate applies in the State of Qatar as follows:

  • General rate: 10% of taxable income for all activities.
  • Special rate: 35% of taxable income is applied to activities related to petrochemical industries and petroleum operations. This percentage may be raised according to some agreements.

Are salaries and wages of individuals, citizens and residents, subject to income tax?

No, individual salaries and wages are not subject to any tax.