For companies looking to set up in Qatar, there are many legal requirements to consider. Perhaps one of the most important of which involves selecting an auditor.
Setting up a business in Qatar means employing the services of an external auditing company. Why? Quite simply, because it’s the law.
So, how would a new company go about finding an auditor? To ensure you choose the right auditing company when setting up your business in Qatar, here are some of the essentials to tick off your list.
Firstly, the firm you select must be registered in the State of Qatar. Secondly, it must provide the following services as an absolute minimum. To ensure your company formation adheres to all the local laws, speak to a consultant for further information on requirements.
Applying for a Tax Card
Once your company is established and has obtained its commercial registration, you will also be provided with a preliminary tax card which confirms the company is registered with the tax department with the same number as the Commercial Registration. Thereafter, your selected auditor must apply to the tax department for your company’s tax card which will also outline the companies Tax Identification number (TIN) to be provided to clients.
Submitting your Paperwork
Any business in Qatar with foreign ownership (not including those owned by residents of Gulf Cooperation Council countries) is required to submit its audited financial statements and tax declaration to the tax department.
The tax law states that all accounts are prepared in accordance with International Financial Reporting Standards. However, it may be possible to make an application to the tax department to use another accounting method.
The tax law also states that each tax return is co-signed by a registered auditor in Qatar.
So, what are some of the important tax-related deadlines you need to know when doing business in Qatar?
- By the end of the financial year (December 31, in Qatar), all Qatar-based companies must have closed their books.
- By April 30, your auditor must submit your financial reports to the tax department, along with any corresponding taxes.
It’s worth bearing in mind that as a taxpayer in Qatar, you are required to keep and maintain records and documentation regarding your activities in Qatar for 10 years, following the end of the taxable year to which the records and documentation relate.
If you don’t comply with any of these requirements, you may end up facing a penalty of QAR15,000.
Choosing the Right Auditor
As we stated earlier, these services are the minimum an auditor must provide. Do some background research to find the auditing company that will do the best job for your company, by finding out exactly what each one offers.
There are many auditing firms to choose from in Qatar, ranging from the Big Four, right through to small local firms. Do your homework to make sure you select the company that’s right for you.
Want some extra support as you start up in Qatar? Providing essential support and services to businesses starting up in Qatar, Fusion Middle East has local knowledge that is invaluable to success.
As Fusion Middle East is not a qualified tax advisor, we would always recommend seeking the advice of a qualified tax professional regarding all tax matters in Qatar.
However, we can provide all the support your business will need to follow in order to abide by the law in Qatar.
For further company formation advice, contact our team today. We can guide you through all the local business setup requirements, and help you get started with setting up your business in Qatar or the UAE today.