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QNA
Doha
Taxation is necessary to diversify revenue away from non-renewable sources, General Tax Authority (GTA) President Ahmed bin Issa al Mohannadi has said.
Qatar’s taxes, which is one of the world’s lowest, would be gradually increased like in other countries, he told Al-Sharq in an interview, while pointing out that high-income oil producers, such as Canada, Australia and Luxembourg, impose taxes so as to diversify the sources of income.
He said small- and medium-sized enterprises (SMEs) are covered by the Income Tax Law No 24 of 2018 but some are exempted by virtue of the nature of their activity.
He said there was a special section for SMEs within the Income Tax Department. Exemptions apply to those SMEs whose gross income comes from craft activities that do not use machinery and whose total income does not exceed QR200,000 per year, and the average number of workers in the tax year does not exceed three workers, and which are practiced through one establishment.
Mohannadi said “nature and social aspects” were taken into account in determining the exemptions granted in the text of Article No. 4 of Law 24 of 2018.
Regarding the application of the simplified tax return form, which must be submitted by companies and permanent establishments that are exempt from tax, he said the General Tax Authority seeks to reduce the burden on taxpayers, especially those who have small or micro commercial activities.
Regarding the application of the selective tax on a number of unhealthy goods, starting from 2019, on the nature of the types of tax, he said the selective tax (Law No. 25 of 2018) is a tax on consumption that is applied to excise goods (soft drinks 50 percent, energy drinks 100 percent, tobacco of all kinds 100 percent, goods of a special nature 100 percent), when importing and local production, and deduction from the source: they are the commissions payable under agency, mediation or commercial representation agreements, which were achieved outside the country for activities that were carried out in it.
On the repercussions of the coronavirus pandemic, he said the GTA is following the changes resulting from the crisis, and as a result, a package of facilities is provided, including postponing the submission of tax returns for more than one period, as well as exemptions from fines and financial penalties, which mitigate the impact of the pandemic on companies.
The impact varies from one economic sector to another, but it was a difficult year for all economic sectors for all countries, however, this impact is short-lived, and several sectors have begun to recover, starting from the last quarter of last year, and the World Bank estimates also indicated an estimated growth rate of 3 percent for the State of Qatar for the year 2021.
On the authority’s role in preparing and implementing double taxation avoidance agreements that countries conclude with other countries and evaluating the economic and investment return from them to the state, he stressed that the role of the General Tax Authority is to prepare and negotiate draft agreements to avoid double taxation and prevent financial evasion between the government of the State of Qatar and the governments of other countries.
Mohannadi pointed out that the double taxation agreements and the prevention of financial evasion aim to eliminate double taxation between the government of the State of Qatar and the governments of other countries, solve obstacles that can restrict the movement of capital, reduce the tax burden and encourage trade exchange, and increase investment opportunities between countries through individuals and companies, and the promotion of international standards of transparency through the exchange of documented financial information.
He said the agreement provides for important economic articles in the field of maritime and air transport, joint projects, and other articles such as dividends, interest and royalties, which come in light of strengthening economic relations between the governments of the countries participating in this agreement.
Mohannadi said Qatar has concluded 88 agreements to avoid double taxation and prevent financial evasion, and negotiations are currently underway with a number of friendly countries with the aim of signing similar agreements in this field, in line with the State of Qatar’s investment orientation abroad, taking into account the investment interests of several parties in the country such as Qatar Energy, Qatar Investment Authority, Qatar Airways, and others, in order to ensure the provision of economic benefits to commercial activities abroad.
Doha
Taxation is necessary to diversify revenue away from non-renewable sources, General Tax Authority (GTA) President Ahmed bin Issa al Mohannadi has said.
Qatar’s taxes, which is one of the world’s lowest, would be gradually increased like in other countries, he told Al-Sharq in an interview, while pointing out that high-income oil producers, such as Canada, Australia and Luxembourg, impose taxes so as to diversify the sources of income.
He said small- and medium-sized enterprises (SMEs) are covered by the Income Tax Law No 24 of 2018 but some are exempted by virtue of the nature of their activity.
He said there was a special section for SMEs within the Income Tax Department. Exemptions apply to those SMEs whose gross income comes from craft activities that do not use machinery and whose total income does not exceed QR200,000 per year, and the average number of workers in the tax year does not exceed three workers, and which are practiced through one establishment.
Mohannadi said “nature and social aspects” were taken into account in determining the exemptions granted in the text of Article No. 4 of Law 24 of 2018.
Regarding the application of the simplified tax return form, which must be submitted by companies and permanent establishments that are exempt from tax, he said the General Tax Authority seeks to reduce the burden on taxpayers, especially those who have small or micro commercial activities.
Regarding the application of the selective tax on a number of unhealthy goods, starting from 2019, on the nature of the types of tax, he said the selective tax (Law No. 25 of 2018) is a tax on consumption that is applied to excise goods (soft drinks 50 percent, energy drinks 100 percent, tobacco of all kinds 100 percent, goods of a special nature 100 percent), when importing and local production, and deduction from the source: they are the commissions payable under agency, mediation or commercial representation agreements, which were achieved outside the country for activities that were carried out in it.
On the repercussions of the coronavirus pandemic, he said the GTA is following the changes resulting from the crisis, and as a result, a package of facilities is provided, including postponing the submission of tax returns for more than one period, as well as exemptions from fines and financial penalties, which mitigate the impact of the pandemic on companies.
The impact varies from one economic sector to another, but it was a difficult year for all economic sectors for all countries, however, this impact is short-lived, and several sectors have begun to recover, starting from the last quarter of last year, and the World Bank estimates also indicated an estimated growth rate of 3 percent for the State of Qatar for the year 2021.
On the authority’s role in preparing and implementing double taxation avoidance agreements that countries conclude with other countries and evaluating the economic and investment return from them to the state, he stressed that the role of the General Tax Authority is to prepare and negotiate draft agreements to avoid double taxation and prevent financial evasion between the government of the State of Qatar and the governments of other countries.
Mohannadi pointed out that the double taxation agreements and the prevention of financial evasion aim to eliminate double taxation between the government of the State of Qatar and the governments of other countries, solve obstacles that can restrict the movement of capital, reduce the tax burden and encourage trade exchange, and increase investment opportunities between countries through individuals and companies, and the promotion of international standards of transparency through the exchange of documented financial information.
He said the agreement provides for important economic articles in the field of maritime and air transport, joint projects, and other articles such as dividends, interest and royalties, which come in light of strengthening economic relations between the governments of the countries participating in this agreement.
Mohannadi said Qatar has concluded 88 agreements to avoid double taxation and prevent financial evasion, and negotiations are currently underway with a number of friendly countries with the aim of signing similar agreements in this field, in line with the State of Qatar’s investment orientation abroad, taking into account the investment interests of several parties in the country such as Qatar Energy, Qatar Investment Authority, Qatar Airways, and others, in order to ensure the provision of economic benefits to commercial activities abroad.
