GTA President No. 2 of 2021

Circular of the GTA President No. 2 of 2021

Concerning the Tax Return and Financial Statements for Companies and Establishments Owned by Qatari Citizens and Citizens of the GCC Countries Exempt from Income Tax

M /s. Taxpayers and Auditors' Offices

Doha, Qatar

Pursuant to the provisions of Article 11 of the Income Tax Law promulgated by Law No. 24 of 2018 that binds the taxpayer, even if he is a beneficiary of a tax exemption, to submit a return to GTA using the form prepared for the purpose indicating the taxable income and the amount of payable tax, as well as Articles 34, 33, 32, 31, 30, 29 of the Executive Regulations of the Income Tax Law issued under Council of Ministers Decision No. 39 of 2019, which specified the conditions, controls, dates and procedures necessary therefor,

with reference to the Minister of Economy and Finance Circular No. 4 of 2011, regarding the submission of tax returns and financial statements for companies and establishments owned by citizens of the State of Qatar and the GCC countries exempt from income tax, and to the circular of the GTA President No. 14 of 2019, regarding some transitional provisions for the application of the Income Tax Law, following the circular of the GTA President No. 2 of 2021 regarding the extension of the period for submitting the tax return for the tax year 2020, in an effort to assist the taxpayers relevant to this circular, and for the purpose of simplifying procedures and achieving flexibility in the application of the provisions of the said Articles, it has been decided to take the following measures:

Tax-exempt companies, owned by Qatari nationals and owners from the GCC countries, whose capital is (1) million riyals and more or their annual revenues are (5) five million riyals and more, shall submit the tax return and audited financial statements using the tax return form approved by GTAthrough "Dhareeba" portal. Provided that the conditions for attaching the final accounts shall be observed, in accordance with the provisions of Articles 34, 33 of the Executive Regulations of the Income Tax Law.
Tax-exempt companies, owned by Qatari nationals and owners from the GCC countries, whose capital is less than (1) million riyals and their annual revenues are less than (5) five million riyals, shall submit the tax return and financial statements, using the simplified tax return form through "Dhareeba" portal.
Extending the deadline for submitting the tax return and financial statements for the accounting period for the tax year 2020 for a period of (4) months, each according to its accounting period approved by GTA if it is different from the tax year referred to herein.
In the event that the above procedures are not complied with regarding the submission of the tax return within the prescribed periods, a financial penalty of (500) QAR will be imposed for each day of delay, up to a maximum of (180,000) QAR, in accordance with Article 24 of the said Income Tax Law.
The procedures mentioned in clause (2.1) above shall apply to the accounting period for the tax year 2020 and beyond.
The procedures mentioned in Clause (3) above shall apply to the accounting period for the tax year 2020 only, provided that the deadline for submitting the return and financial statements stipulated by law is observed.

All competent authorities, each according to its competence, shall apply this circular from the date of its issuance.

Best Regards,

//Signature Affixed//

Ahmed bin Issa Al Muhannadi

General Tax Authority President

Issued on: 08/11/1442 AH

Corresponding to 24/03/2021 AD