Qatar's Income Tax Law sets specific financial penalties for each breach of tax obligations, most notably a penalty of 500 QAR for each day of delay in filing a tax return, capped at 180,000 QAR, a penalty of 2% of the tax due for each month of delay in paying it, and a penalty of 20,000 QAR for violating registration and notification requirements.
Late Filing of the Tax Return
The law provides that any taxpayer who does not file the tax return within the prescribed period is subject to a financial penalty of 500 QAR for each day of delay, capped at 180,000 QAR. The delay period begins the day after the final filing deadline expires and ends on the date the return is actually filed.
Late Payment of Tax or Late Remittance of Withheld Amounts
The law imposes on any taxpayer who fails to pay the tax within the prescribed period, and on any natural or juridical person who fails to remit the withheld tax at source by the deadlines, a financial penalty of 2% of the tax due for each month of delay or part thereof, not exceeding the amount of the tax due itself. Part of a month is treated as a full month for this calculation.
Violating Registration and Notification Requirements
Any taxpayer who violates the registration and notification provisions set out in the law and its regulations is subject to a financial penalty of 20,000 QAR. A taxpayer benefiting from a tax exemption who fails to submit the return and its required supporting documents is subject to a financial penalty of 10,000 QAR, in addition to the late-filing penalty if applicable.
Bookkeeping Violations and Incorrect Information
Any taxpayer who violates the provisions on submitting audited final accounts and maintaining accounting books is subject to a financial penalty of 30,000 QAR. Any person who submits incomplete or incorrect information to the Authority is subject to a financial penalty of 100 QAR for each item, capped at 10,000 QAR; if it is established that such information led to an incorrect tax assessment, an additional penalty of 50% of the tax that went unpaid because of it is imposed.
Waiver of Financial Penalties
The President or their delegate, within a limit of 500,000 QAR, and the Minister beyond that limit, may waive the financial penalties on a taxpayer, wholly or partially, if the taxpayer presents justifications the Authority accepts; this waiver is revoked if the taxpayer files a grievance against the Authority's decision.
Legal References
- Law No. (24) of 2018 Promulgating the Income Tax Law — Article 24/1
- Law No. (24) of 2018 Promulgating the Income Tax Law — Article 24/2
- Law No. (24) of 2018 Promulgating the Income Tax Law — Article 24/3
- Law No. (24) of 2018 Promulgating the Income Tax Law — Article 24/4
- Law No. (24) of 2018 Promulgating the Income Tax Law — Article 24/5
- Law No. (24) of 2018 Promulgating the Income Tax Law — Article 24/12
- Law No. (24) of 2018 Promulgating the Income Tax Law — Article 25
For questions about your specific situation, you can ask the Qatar Tax & Legislation Helper on Helpers, or consult a licensed chartered accountant.