Practical COVID-19 outbreak advice

Business leaders that deal with long-term contracting projects face unique financial reporting issues related to the accurate reporting of revenue. International Financial Reporting Standards (IFRS) require reporting revenue based upon the percent of completion of a project as of the last day of the reporting year (International Financial Reporting Standards [IFRS], 2015a). The IFRS accounting standards require management to assess project budget that is material to the financial statement results. Without appropriate internal controls, these estimates are susceptible to manipulation by the management.

When the Tax season starts at Qatar most of the companies become significantly busy in preparing the financial statements and relevant supporting documents for the auditor’s review.

Also, along with the financial statements, every company must arrange its books to comply with the Tax law in Qatar and submit Tax return or Tax declaration to the Tax department accordingly.

Most of the companies must be cautious while dealing with Foreign Service Providers, which are not registered in Qatar. Companies must deduct withholding Tax 5 or 7% depending on the type of activity the Service Provider performs at Qatar. Withholding Tax is applicable only on the services performed by the Service Providers to the companies; however, materials are not subject to withholding Tax. Further, any service executed offshore (outside Qatar) is not subject to withholding Tax except royalties or any activity that gives the right to use a name, trademark etcetera. Withholding tax is applicable to service executed onshore (inside Qatar).