On 30 August 2021, the General Tax Authority (GTA) of Qatar has announced the extension of deadline for submitting tax returns for fiscal year 2020 for companies and establishments owned by Qatari citizens and GCC citizens, which are exempt from income tax for a period of four months, to 31 December 2021 from 31 August 2021.
The authority said that it had always sought to enhance the principle of tax compliance with taxpayers, stressing the importance of the commitment of small- and medium-sized companies and projects owned by Qatari citizens and residents of GCC countries, to submit tax returns to avoid financial penalties.
Failure to submit the tax returns on time is liable to QAR 500 penalty per day capped at QAR 180,000.
Taxpayers required filing simplified tax returns (not full return)
The following three conditions must be met for taxpayers to submit simplified tax returns –
- Must be 100% wholly owned Qatari companies, or have GCC shareholder(s) who are resident in the State of Qatar;
- Must have share capital of less than QAR 1 million and annual revenue of less than QAR 5 million; and
- Must have their Head office located in the State of Qatar.
Furthermore, the GTA has clarified that for taxpayers who are required to file simplified tax return under Circular 2, it is not mandatory for such taxpayers to submit audited financial statements that are approved and audited by an Audit office along with simplified tax return.
