At Mazars in Qatar, we take the Tax compliance of our clients seriously. Being compliant with the Tax reporting obligations is much more than outing numbers in a box of a Tax return.
1. The Facts: Preparing and filing your Tax return
The General Tax Authority in Qatar (“GTA”) has started sending reminders that companies in Qatar - including 100% Qatari owned companies - will have to file their tax returns related to the calendar year 2021 by 30 April 2022. Any corporate Tax payable must also be remitted by this deadline.
We interpret the move of GTA to send already now reminders to be a clear indication that the deadline of 30 April 2022 (as legally prescribed) will be upheld this year. Unlike previously, no extension will be granted.
2. The Risks
We have also seen that GTA has stepped up their reviews on the Tax base reported and the resulting Tax calculations. Numerous reviews have resulted in re-assessments of the Tax payable, or the Tax base deductions applied.
Late filing penalties are imposed from the day after the deadline. The penalty amounts to QAR 500 per day that the Tax return filing is delayed with a maximum of QAR 180,000. The penalty is applied automatically by the GTA and will appear immediately on the Dhareeba portal. Moreover, it is not just about a financial penalty but also all needed clearances and other formalities to be handled by and with GTA will be blocked. Late Tax payment penalties are also applied if the tax due is paid after the deadline (i.e., appears on the GTA account post 30 April).
3. The Actions
Roll out a clear timeline and process to work with your Auditor on timely preparation of the Financial Statements. These form the basis of the Tax base and tax due calculations and will have to be filed together with the Tax return.
Ensure that the process and timeline allows for sufficient time to properly make the Tax calculations, complete a draft Tax return, validate the reported figures and file the return with payment before the 30 April 2022 deadline.
4. Questions and Clarifications
The Tax compliance team at Mazars in Qatar, part of the Tax and Legal Department, assists over 600 clients with their Tax compliance obligations, including the representation towards GTA. If any questions or clarifications on your Tax obligations as well as the expected VAT introduction in Qatar, do reach out to us.