The General Tax Authority (GTA) affirmed the need for home-based projects and small and medium-sized companies owned by Qatari citizens and GCC citizens residing in Qatar to file a simplified "tax return" themselves through Dhareeba e-portal.
In an exclusive statement to Qatar News Agency, head of GTA's Taxpayer Support Department Nasser Radi said that General Tax Authority has announced earlier the beginning of the implementation of "simplified tax return form", which must be filed by companies and permanent establishments that were exempted from tax, owned by Qatari citizens and those from GCC residing in Qatar, and whose capital is less than QR1mn, and its annual revenues are less than QR5mn, adding that it is mandatory for all companies.
He pointed out that this procedure aims to ease the procedures for filing tax returns and enhance the principle of tax compliance by this category of taxpayers, through which the taxpayer can submit his simplified tax return himself, attaching some supporting documents such as lease contract, bank statement and expense bills, knowing that all companies are required to submit simplified tax return is not subject to income tax, adding that all the companies submitting "simplified tax return" are not subject to income tax.
He noted that the authority has launched the Dhareeba portal since July 2020, offering taxpayers an easier and faster way of completing their tax transactions, pointing out that on this basis, the tax return must be submitted electronically through the portal website www.dhareeba.gov.qa
Regarding the dates for filing tax returns, he said that in accordance with the provisions of Article 29 of the Executive Regulations of the Income Tax Law promulgated by Law No 24 of 2018, the tax return must be filed within four months from the end of the taxable year, and therefore, for the tax year extending from 1/1/2021 to 31/12/2021, the deadlines for submitting income tax return are from 01/01/2022 to 30/4/2022.
Regarding the reason for submitting tax returns by companies that are 100% Qatari owned and those owned by GCC citizens though they are exempt from income tax, Nasser Radi said that in implementation of the provisions of Article 11 of Law No 24 of 2018 issuing the Income Tax Law, the taxpayer, even if he is a beneficiary of a tax exemption, shall submit a tax return to the Authority on the form prepared for this purpose.
He stressed that this procedure comes within the framework of the State of Qatar's fulfilment of its international obligations with regard to taxes and in line with the application of international standards for the purpose and the enhancement of tax compliance by this category of taxpayers.
As for the penalties imposed by the General Tax Authority under the law for late submission of tax returns, he said that in implementation of the provisions of Article 24 of Law No 24 of 2018 issuing the Income Tax Law, failure to submit the tax returns on time is liable to QR500 penalty per day capped at QR180,000.
Nasser Radi said that extending the period for submitting the tax return for the fiscal year for companies and establishments owned by Qatari citizens and GCC citizens residing in Qatar, which are exempt from income tax, for a period of 4 months, came to submit the tax return and financial data for the accounting period for the tax year 2020 for a period of 4 months.
This sets the date August 31, 2021 as the deadline for submitting the tax return for this category of taxpayers, he added.
He noted that in a second stage, the deadline for submitting the tax return and financial statements for the accounting period for the 2020 tax year was re-extended for an additional 4 months, setting the date of December 31, 2021 as the last date for submitting the tax return.
The aim of the extension is to achieve tax compliance for this category of taxpayers, which, prior to the issuance of Law No 24 of 2018 on issuing the Income Tax Law, was not obligated to submit its tax return, and in line with the preventive measures taken by the State to limit and contain the spread of the coronavirus (Covid-19), he said.
He said that people with expired commercial records or those with no commercial license can submit a simplified tax return if they practice any commercial activity in the country, taking into account the availability of conditions that these companies are owned by Qatari citizens and GCC citizens residing in Qatar, and whose capital is less than QR1mn, and annual revenue is less than QR5mn.
He stressed on the role of the General Tax Authority in contributing to enhancing the investment environment and upgrading the general economic climate of the country by establishing a promising electronic system in line with Qatar Vision 2030 aimed at fully digitising administrative services and providing all mechanisms and guarantees to achieve them, in addition to enabling various entities and individuals to simplify and facilitate the fulfilment of their tax obligations such as registration, filing of returns and payment of taxes, as well as submitting their requests to the authority, inquiries and suggestions regarding their tax treatment.
Radi pointed out that these procedures also seek to create a complete administration (the Department of Taxpayer Service) to address and deal with economic customers, facilitate services and bring them closer to them, as well as to sign tax agreements with countries of the world to ensure the rights of economic dealers and investors in their international dealings.
These procedures also seek to keep pace with international developments in the tax field and engage in most global initiatives in tax, to facilitate investment and raise the national economic climate to the level of developed countries, he added.
On the requirements of commercial registration cancellation, Director of Commercial Registration and Licenses Department at the Ministry of Commerce and Industry Ayed al-Qahtani explained that the cancellation of an expired register (in case a commercial license has not been issued) requires that the commercial register of a limited liability company has expired for more than 90 days, and the approval of the mortgagor in the event of a mortgage on the register, in addition to the approval of the court in the event of a seizure on the register, as well as submitting a form to write off the commercial register signed by one of the authorised signatories.
Al-Qahtani pointed out that this procedure does not require a letter from the General Tax Authority or the stamp of the Ministry of Labour on the non-existence of employment.