Income tax Return Preparation and Submission

Our firm helps you in the preparation of Year-End Tax Declaration in Dhareeba system and ensure with the Qatari Income Tax law (24) 2018, and its Executive Regulation. That your income tax declaration in compliance with the Qatari Income Tax Law.

Qatar Tax law stated that any business activity carried out in the state of Qatar will be subject to corporate or withholding tax. According to the income tax law in Qatar, an "activity" has been defined as any occupation, service, trade, profession, or the execution of a contractual agreement, or any other business for generating a profit. Income tax is levied on foreign partners whether they operate through local companies, local branches, permanent establishment or in a joint venture with foreign enterprises.

The Gregorian calendar is employed for Qatar income tax purposes. However, a taxpayer may apply to prepare his financial statements for a twelve-month period ending on a day other than 31 December if the company has not been established on the 1st of January. The first accounting period may be for more than twelve months. However, it should not be less than six months nor more than 18 months.

A taxpayer should maintain his accounting records in Qatari Riyals as long as there is no permission from the tax department to use a foreign currency.

Dhareeba registration

Our firm can assist you in completing the registration process in Dhareeba system, which is required by any company established in Qatar. It is mandatory to start the registration process and complete it within 60 days from the date of the commercial registration. The tax card will be issued automatically in Dhareeba system when the registration is completed.

Transfer Pricing

• The Transfer Pricing requirements include four tiers of compliance: (i) Transfer Pricing Form/Questionnaire to be provided with the Tax Return, (ii) Masterfile, (iii) Local file and (iv) Country by Country Reporting requirements (already introduced in 2018/2019).
• Preparing TP documentation (Local File and Master File) by the time of filing the tax return for the period of occurrence of the respective related party transaction(s) or at any other date that the GTA may specify otherwise. Master file is the responsibility of the parent company at the group level to provide the data to the local entity.
• The Local File and Master File shall be established according to the OECD Guidelines. The GTA did not establish a specific format/template for this purpose and to the extent that the following conditions are met:
• Advising the clients how to adapt an effective managerial accounting system.

1. The threshold (QR 10,000,000) ten million on total revenues or total assets of the taxpayer is met.
2. One of the related parties of the Qatari taxpayer is established outside the State of Qatar.

• GTA will request the entity to provide any necessary documents to support the subject matter. The deadline for the taxpayer to provide such information upon request from the GTA shall not exceed 30 days from the date of the GTA's request.
• GTA will no longer accept the absence of a Local file / Master File, based on the argument that other companies of the group are responsible for establishing and documenting the arm's length principle. Also, the absence of adjustment to the intercompany prices in case such prices are not established to be arm's length.
• As per the transfer pricing provisions pertaining to Executive Regulations, the calculation of the arm’s length price has to be done by using Comparable Uncontrolled Price (CUP) methodology as the primary method. In the event the CUP method is not applicable, the taxpayer should lodge a request to the GTA for the application of a different transfer pricing methodology as prescribed in the OECD guidelines.
  
  
• Comparable Uncontrolled Price (‘CUP’) Method.
  
  
  • Resale Price Method (‘RPM’).
  • Cost Plus Method (‘CPLM’).
  • Profit Split Method (‘PSM’). or
  • Transactional Net Margin Method (‘TNMM’).

With our TP expert our firm can undertake and perform the following activities:

1. Performance of functional analysis in the intra-group transactions through meetings and interviews with the Group’s management.
2. Performance of the necessary economic analyses to check and be able to support the arm’s length nature of material intra-group transactions. The analyses will be performed by applying the most appropriate TP method to the circumstances of the cases according to the OECD TP Guidelines.
3. In absence of comparable uncontrolled transactions, in order to test the arm’s length nature of certain intra-group transactions, it may be necessary to carry out certain benchmarking analyses through external databases.
4. Drafting of TP documentation in line with the standards set forth by the OECD TP Guidelines, illustrating the analyses performed and the conclusions reached about the arm’s length nature of each material intra-group transactions.

Financial Consultancy Services

Our firm can provide a range of financial services such as:

• Preparation of Feasibility Studies for projects both in Qatar and overseas.
• Preparation of business plans and assist the clients in raising finance for local banks. We validate the figures provided by the clients before we prepare the business plan.
• Company Valuations, the clients' top management, need at certain times to do a comprehensive business valuation in which it enables them to make significant decisions. These potential decisions can lead the top management to take the appropriate decision to sell or not sell the company or part its equity, to buy another company or part of its equity, or to approach the bank to take a convenient borrowing, which enables it to sustain its business.
• Advising the clients how to adapt an effective managerial accounting system.

Due Diligence Services

At our firm, we assist you with acquisition and selling due diligence prior to completing and signing the agreement, then you “buyer or seller” can enhance your level of confidence regarding the substance of the agreement.

Our knowledge will be able to serve you the following

• Reviewing the agreements and ensuring that the provisions do not deviate from the points buyer and vendor have agree on to proceed.
• Reporting the buyer or vendor of any negative financial impact.
• Assessing the Tax before you close any transaction.
• Strong legal defence to third-party claims after a transaction closes.
• Reduce legal issues by alerting a purchaser or investor.
• Reduce potential liabilities that can be mitigated in various ways prior to closing the transaction.

Company Formation and Legalization

Establishing a company in Qatar requires a certain level of due care, and appropriate decision-making process prior to set up the business. We advise you about the appropriate legal structure and suffix. Also, we advise you about the process of submitting the required documents in the prescribed formats, sequential order of completion of the process and follow-ups in the relevant governmental bodies.

Under the revised “Qatar Companies Commercial Law”, there is a major change on the “forms of business entities” that can be established. we can propose the most beneficial decision making to take.

With us, our experts take accountability for your company's establishment and legalization and you can assure that you will not get any confusion or bad decision making.

Credit Facility Reviews

We provide credit facility review services specially for the purpose of bank loans. We will perform our review to obtain considerable comfort as to the quality of the financial statements at different cut-off periods required by the lender

Liquidation and Insolvency

There are certain procedures to be followed on the liquidation of Companies including

• General Assembly resolution approving the dissolution of the company
• Obtaining Tax Clearance till the cut-off date of the liquidation

Our experts take accountability for the complete procedures to be followed in the above. Also, we advise you about an appropriate exit strategy along with the liquidation and winding-up procedures.