1. What are the primary options for foreign investors who want to set up business and legal presence in Qatar?

The main opportunities available to foreign investors seeking to establish presence in Qatar are:
• Project or contract specific / temporary branch
• Permanent branch such as International Engineering Consultancy Office (IECO)
• Representative Trade Office (RTO)
• An entity under Qatar Financial Centre (QFC)
• An entity under Qatar Science & Technology Park (QSTP)
• Incorporated Joint Venture

2. What is the corporate tax rate in Qatar?

There is no corporate income tax for entities wholly owned by Qatari and GCC nationals. However, if an entity is wholly or partially foreign-owned, its taxable income related to non- Qatar nationals are generally subject to a tax rate of 10%. Different tax rates may apply to companies with operations on oil, gas, government agreements, royalties, technical fees, interests, commissions, among others.

3. When should I register my business with General Tax Authority (GTA)??

A taxpayer carrying on a business activity in Qatar should submit an application for a tax card within 30 days from whichever is the earlier date, commencement of their activities or receipt of commercial registration. The penalty on failure to register for tax is QAR 20,000. 

4. What documents are needed for tax card application?

The application for tax card shall be accompanied by the following documents:
- Incorporation contract, statutes and bylaws for companies;
- Trade License and Establishment Card;
- Commercial Registration valid for at least 3 months;
- Partners’ ID / Passport or valid Commercial Registration (in case a Company has been registered and mentioned as Partner/Shareholder); and
- A delegation to an auditor registered in the State to represent the company or the establishment before GTA.

5. When should I file tax returns?

A taxpayer is required to submit an income tax declaration to GTA within four months from the end of the accounting period. Hence, if the accounting period ends on December 31, 2019, then the taxpayer should submit by April 30, 2020.

6. What if I fail to file tax returns?

According to Law No. 24 of 2018 (“the New Income Tax Law”), there is a financial penalty for late filling of return. The taxpayer shall be subject to a financial penalty of QAR 500 per day of delay, with a maximum of QAR 180,000.

7. When should I pay tax due?

The taxpayer shall pay the tax due on the same day of filing the return.

8. What if I fail to pay the tax due?

For late payment of tax, the penalty is 2% of the tax due per month of delay or part thereof, up to the amount of tax due.

9. Who are required to submit audited financial statements?

If the business is wholly or partially foreign-owned, then it is required to submit audited financial statements signed by a locally registered auditor with the tax declaration to the GTA, if:
• The capital of the taxable entity in Qatar exceeds QAR100,000 or
• The annual taxable income of the entity exceeds QAR100,000 or
• In the case of a branch, if the head office is situated outside of Qatar.

10. Are companies and permanent establishments wholly owned by Qatari or GCC nationals also required to file audited financial statements and tax returns?

Yes, if they qualify in either of the following:
• Their share capital is greater than or equal to QAR2,000,000; or
• Their gross revenue is greater than or equal to QAR10,000,000.

11. What obligation does a corporate entity have on legal reserve?

According to Qatar Commercial Companies Law No. 11 of 2015, 10% of the net profits of the company to a legal reserve until the amount of the legal reserve equals or exceeds half of the value of the capital of the company.

12. Do I need to keep accounting books, records and documentation pertaining to activities of my business?

Taxpayers are required to keep and maintain accounting books, registers and documents pertaining to their activities in Qatar for a period of 10 years following the end of the taxable year to which the records and documentation are related, unless released from this obligation after meeting certain conditions as provided in the executive regulations of the law.

13. What is WPS?

Wage Protection System (WPS) is a requirement for employers in Qatar to pay salaries of employees with local employment contract or Residence Permit through bank account and to submit monthly salary information to their bank. WPS is initiated by Ministry of Labour and Social Affairs and Qatar Central Bank to monitor the process of wage payments pursuant to the Labour Law.

14. What should be included in a local employment contract?

At a minimum, the local employment contracts would in general be expected to include the employer name, registered place of employment, employee name, his/her nationality, his/her wage or salary, annual and other leave, type of work, end of service benefit, date of employment, and duration of the contract (if fixed).

15. What is feasibility study?

The feasibility study is a process of analyzing the factors needed to have a successful project, taking into consideration the market, competition, financial, legal, economic, technological, time schedule, risks, and other factors. A feasibility study looks at the viability of an idea with an emphasis on identifying potential problems.