Qatar: Tax reporting by tax-exempt entities

New corporate tax reporting responsibilities for entities that are exempt from tax

New tax reporting responsibilities for entities that are exempt from tax.

Guidance issued by the tax authority reflects new tax reporting responsibilities for entities that are exempt from tax.

The tax authority issued Circular No. (2) of 2021 (24 March 2021) regarding the tax filing requirements and deadline for Qatari and Gulf Cooperation Council (GCC) businesses operating in Qatar that are exempt from income tax. The circular revises the threshold amounts necessitating the filing of tax returns plus audited financial statements. Previously, the thresholds were QAR 2 million of capital or QAR 10 million of annual turnover. The new thresholds were reduced to QAR 1 million of capital or QAR 5 million of annual turnover.

A key implication from the circular is that all Qatari or GCC-owned entities that are exempt from income tax must file tax returns—regardless of their income or capital amounts.

Read an August 2021 report [PDF 209 KB] prepared by the KPMG member firm in Qatar

 

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