The General Tax Authority revealed that it must be notified of contracts within 30 days from the date of concluding the contract or agreement, and confirmed that government agencies, public bodies and institutions, companies, associations, private institutions, private charitable associations and institutions, private institutions of public interest and individual establishments must notify the Authority of the following contracts:
A – Contracts concluded with non-residents who do not have a permanent establishment in the country, whatever their value.
B – Contracts concluded with residents, or non-residents who have a permanent establishment in the State, if
The contract value amounted to:
(200,000) two hundred thousand riyals at least for service contracts
(500,000) five hundred thousand riyals at least for contracting contracts (500,000) five hundred thousand riyals at least for supply and service contracts.
Provided that the Authority shall be notified of the contracts within (30) thirty days from the date of concluding the contract or agreement.
According to the provisions of Law No. 24 of 2018 issued regarding the Income Tax Law, the tax rate is 10% of the taxpayer’s taxable income for the tax year.
Income tax in Qatar is imposed on the basis of the source of income, with limited exceptions. In general, income obtained from Qatari sources from resident individuals or commercial entities is subject to income tax at the rate of 10%, while the profits of resident legal persons are exempted by the proportion of profits of Qatari natural persons and the proportion of entities wholly owned by Qataris, as well as entities partially owned by Qataris. , as a percentage of their distributions.
The application of the income tax law is different for entities operating in the oil and gas sector, or in which the government, ministries, other government agencies, or public institutions or corporations are owners.
With the exception of the profits of state-owned entities wholly or partially, directly or indirectly, operating in the field of oil and petrochemical industries.
The Authority confirms that tax evasion is an illegal behavior through which a taxpayer defrauds the laws in order not to pay the tax due in full or to pay a value less than the tax due during a specified financial period.
There are many methods that tax evaders resort to in order to reduce the taxable income, and thus reduce the amount of tax due on them, and the tax evader may use these methods independently, or more than one method of tax evasion may be used at the same time, and one of the most prominent methods of evasion Those who pay the tax are as follows:
Failure to report all the sources from which the income is obtained if there is more than one source.
Deliberately entering some numbers in the accounting records or recording numbers that do not reflect the actual amounts.
Confusion between personal and commercial expenses of the taxpayer.
Attempting to inflate various expenditures and expenditures with the aim of reducing taxable income.
