Applying for your Tax Card in Qatar
Moving to Qatar from overseas means getting to grips with many aspects of life that may be different to those at home. These differences could be cultural or social, or they could be related to the way business is conducted.
For individuals who have moved to Qatar to work, or foreign companies that have established their business in Qatar, there can be numerous factors to consider with regards to business life. When it comes to money in business, there is little more important than taxes.
Moving to Qatar means dealing with a whole new tax system, so it’s recommended that both individuals and companies seek the advice of a qualified tax professional regarding all tax matters in Qatar.
On that note, we would like to stress that Fusion Middle East is not a qualified tax advisor. But, for the purposes of this blog post, we will discuss the broad issues relating to tax in Qatar, so that new arrivals – and potential new arrivals – can get a rough idea of what to expect here.
Tax Cards in Qatar
Tax cards are most definitely something new arrivals in Qatar should know about. Qatar Tax Law states that if you are a taxpayer, and you are involved in any business activity or earn a taxable income in Qatar, then you will need a tax card.
Applying for this tax card comes with a time limit. In fact, your selected auditor must register with the Public Revenue and Taxes Department (PRTD) and apply for a tax card within 30 days of obtaining commercial registration, or the first day of realisation of income from the activity, whichever is the earlier date.
It’s usually recommended that companies make their application with 30 days of obtaining commercial registration, even if their first income comes later.
And what happens if the registration and tax card application is not made in a timely manner? A penalty of QAR5,000 may be imposed for those who fail to register and apply for a tax card within the given deadline.
Aside from avoiding the penalty, taxpayers can enjoy other benefits from having a tax card. As tax cards are typically issued to residents of Qatar or those with a permanent establishment, the tax card holder should be able to receive payments for goods and services free from withholding tax.
Applying for a Tax Card in Qatar
To apply for a tax card, you must register with the PRTD. The following documents are generally required:
- Completed tax card application form,
- Appointed auditor’s mandate,
- Copy of Commercial Registration with six months’ validity,
- Copy of Trade license (Baladia),
- Copy of Computer card,
- Copy of Shareholders’ IDs or CRs
- Copy of Articles of Association (establishment contract/partnership deed/MOU).
With the launch of its new online tax administration system, the Qatar Ministry of Finance encourages all correspondence (such as tax card applications, tax returns, withholding tax statements, extension requests, objections, appeals and so on) to be made through the new electronic filing system.
Want to find out more about tax in Qatar? Check out our other easy-to-follow blog posts on tax-related issues, or subscribe to the Fusion Middle East YouTube channel to stay up to date on all changes that may affect your business.