Qatar – Update on Qatar’s electronic filing requirements

Update on Qatar’s electronic filing requirements

KPMG in Qatar provides an update on the new Tax Administration System (TAS), an online system for tax filings, tax payments and file management processes. The Public Revenues and Taxes Department (PRTD) issued a circular in October 2014 regarding the submission of tax returns through Qatar’s new online Tax Administration System (TAS). However, taxpayers and their tax advisors are encountering many challenges when submitting tax returns through the online portal, while complying with the circular.

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KPMG in Qatar provides an update on the new Tax Administration System (TAS), an online system for tax filings, tax payments and file management processes. The Public Revenues and Taxes Department (PRTD) issued a circular in October 2014 regarding the submission of tax returns through Qatar’s new online Tax Administration System (TAS). However, taxpayers and their tax advisors are encountering many challenges when submitting tax returns through the online portal, while complying with the circular.

KPMG in Qatar met with senior officials at the PRTD to discuss the difficulties faced by taxpayers while submitting the online tax returns, and learned the PRTD’s views on the same.

  • The purpose of the circular was to provide an incentive to taxpayers to submit their tax returns online, and provide a 60-day grace period to file the manual return thereafter.
  • All taxpayers are required to file tax returns online in order to comply with the circular, although the online filing date is not the basis for levying late filing penalties. Under the current rules, the date of submission of the hard copy tax return is used as the basis for determining any penalty.
  • Given the difficulties faced by taxpayers, the PRTD indicated it will allow some flexibility in the dates for electronic submissions and will not impose any penalties for late filing of the tax return online, provided a hard copy of the tax return is submitted within the prescribed reporting deadline of 30 April 2015.
  • If the online filing is done after the reporting date, due to technical system issues, TAS is likely to automatically calculate late filing penalties based on the actual online filing date. In such cases, taxpayers or their tax advisors can apply for a waiver of the penalties based on the acknowledgement of a hard copy submission.

Note the above comments are based on verbal discussions with the PRTD, and this guidance has not been confirmed by the PRTD in writing.

New format for WHT statements

The PRTD has issued a new format of the withholding tax statements to be submitted manually together with Form no 2-1. The purpose of the new format is to align the information submitted through the manual filing of WHT statements, to the information requirements of the online TAS submission.

The new statement requires additional details related to the beneficiary and contract, such as ID type, ID number of beneficiary, nature of activity, relationship with the entity, contract value, contract start and end date, for the each transaction.

The PRTD will no longer accept the old format for the monthly withholding tax submissions.

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