Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/24/2013

Qatar - Tax compliance issues for inbound investors 

July 24: Foreign investors thinking about investing in Qatar need to be aware of the compliance requirements imposed by Qatar Tax Law No. 21 (2009).

Some of the key tax compliance issues that foreign investors need to consider include:


  • Tax registration - Taxpayers must submit tax card application to Qatar tax authorities within 30 days from commencement of activity.


  • Tax declaration - Entities that are resident in Qatar or have a permanent establishment there must file a corporate tax return together with Qatar-based audited financial statements (unless exempt), which must report their gross income derived from “activity” carried on in Qatar and gross income derived from contracts “wholly” or “partly” performed in Qatar.


  • Retention system - Taxpayers making a payment to a foreign entity must retain a portion of the payment until the foreign entity provides a Tax Clearance Certificate to prove it has settled its corporate tax account with the Qatar tax authorities for the relevant year.


  • Withholding tax - Tax-registered entities making payments to their suppliers, vendors, etc., must now self assess and deduct withholding tax (when applicable), and then submit the amount withheld to the Qatar tax authorities.

Read a July 2013 report prepared by KPMG International: Qatar – key tax compliance issues for new inbound investors




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