Eisa Alderbasti: Accounting and Auditing

Tax Services

Our comprehensive income tax services are provided in compliance with Law No: 21 of 2009 that are listed below:

Tax filing services
Obtaining of income tax clearance certificates
Share transfer services (refer attachment for understanding the process to transfer shares)
Withholding taxes consultation
Tax card Applications

Following are the requirements for tax card application
Partnership agreement / Memorandum of understanding
ID Card Copy or Passport copy of the partners
Copy of the latest Commercial Registration
Copy of the Computer card
Copy of the Water & electricity bill / Receipt
Copy of the latest Municipal Approval
Authorization letter to Auditors for further dealings with Income Tax Department
Download tax card application
Download tax card format reference

A Synopsis of the new tax Law:

Accounting Period
Section3, Article 5 Deals with the accounting period.

The taxable year is the same as the Georgian calendar year (12 months commencing from 1st January to 31st December). The client can choose a different accounting period than the taxable year in its first year, provided the tax authorities are informed in advance.

The accounting period should be more than 6 months and less than 18 months. In the second year, the accounting period will be 12 months and cannot be changed.

The tax filing has to be done within 4 months from the end of the accounting period and needs to include financial statements along with relevant forms such as Form 1, Form 3 and Subcontractors declaration if required.

Allowable Expenses - Refer Article 8
All Expenses relating to the business.

Head office overheads must not exceed 3% of Net Income
Gifts and Donations must not exceed 5% of Net Income
All expenses must be supported by proper documentation
Provisions for Doubtful Debtors (New)

Disallowed Expenses - Refer Article 9
Relating to Income Tax.

Fines and Penalties made in breach of the Laws of the State of Qatar Salaries including fringe benefits paid to the Owner (New) Director's remuneration paid to the director of a limited liability company

New Tax Rate
A single uniform tax rate of 10% on taxable income for all foreign owned businesses except petroleum exploration companies who continue to pay at a higher rate of 35%.

Carry forward losses
Refer Article 10 Losses can be carried forward for a maximum of 3 years

Depriciation rates table

Type of Asset	Rate of Depreciation	No. of Years
Building such as offices, houses, warehouses, hospitals and clubs	5%	20
Roads and bridges inside the establishment	5%	20
Storage tanks, pipelines and port’s ducks	5%	20
Furniture and office furniture	15%	6.67
Plants, machinery and any mechanical devices not mentioned below	15%	6.67
Cars and motorcycles	20%	5
Lorries - various sizes	20%	5
Ships	7.5%	13.3
Airplanes	25%	4
Drilling instruments	15%	6.67
General service machinery (including building and road tools, workshop machinery and work machinery, etc.	15%	6.67
Buildings and roads of service stations	5%	20
Machinery for servicing and lubrication of service machinery	15%	6.67
Trailers’ and carts	15%	6.67
Refinery machines and pipelines (inside the refinery) and small tanks	10%	10
Air conditioners	20%	5
Electrical equipments	20%	5
Computer equipments	33.33%	3

Effective Double Taxation Treaties (Source:www.mof.gov.qa) Qatar has signed double taxation treaties with France, India, South Korea,Singapore, Malaysia, China, Azerbaijan, Sri-Lanka, Pakistan, Belarus, Cuba, Macedonia, Lebanon, Syria, Russia, Tunisia, Cyprus, Armenia, Romania, Senegal, Turkey, Seychelles, Venezuela, Indonesia, Yemen, Cortina, Nepal.

Double taxation treaties signed but are not effective Bangladesh, Belgium, Netherlands, UK, Morocco, Sudan, Italy, Poland, Jordan, Algeria, Philippines, Malta, Norway, Luxembourg.

Withholding taxes have increased the importance of double taxation agreements. Qatar is actively increasing its double taxation treaty network.

Download english version of new Income Tax Law (Law No.21 2009)