GTL Summary:

Cabinet Decision No. 39 of 2019 establishes that the accounting period is generally the 12-month tax year. Article 3 outlines specific procedures for activities starting mid-year, liquidations, and cessations. It permits taxpayers to request a different accounting period if they are part of a group or if the nature of their activity necessitates it. Requests must be submitted 30 days before the period ends, with an implicit rejection if the Authority does not respond within 60 days. It ensures continuity and clarity for taxpayers during mergers or acquisitions.

Document Type: ERS - Executive Regulations
Law: Income Tax Law 24 of 2018
Decision Number: executive-regulations-39-article-3
Year: 2019
Country: 🇶🇦 Qatar
Official Name: Article 3
Last updated at: 2026-02-23 12:13:40 UTC

SECTION 1 - SCOPE OF TAX

Chapter 3 - Accounting Period

Article 3

  1. The accounting period for a taxpayer engaging in an activity is the tax year, and it shall be twelve (12) months, subject to the following provisions:

    1. If the taxpayer begins their activity after the start of the tax year, the first accounting period is calculated from the start date of the activity and must end at the end of the tax year in which the activity began, provided that the accounting period is not less than six (6) months. If it is less, it ends at the end of the following tax year.

    2. In case of liquidation of the activity, the accounting period extends from the end of the previous accounting period to the end of the liquidation process, provided that the accounting period does not exceed twelve (12) months. If it exceeds this period, a new accounting period begins.

    3. In case of cessation, transfer, or sale of the activity, the accounting period starts from the end of the previous accounting period to the date of cessation, transfer, or sale, provided the Authority is notified within the legal timeframe. This includes cases such as company merger, acquisition, or division according to the provisions of the commercial companies' Law. The period between the end of the accounting period before the transfer or sale and the start of the new accounting period is treated as an independent accounting period, provided it is not less than six (6) months. If it is less, it is included in the first accounting period after the transfer or sale.

    4. If the taxpayer engages in a temporary activity not exceeding eighteen (18) months, the accounting period is the period of the activity.

    5. In all cases, the tax is calculated based on the income earned during the accounting period.

  2. The taxpayer may request to adopt a different accounting period in the following cases:

    1. If they are a member of a group of companies, or a branch of a foreign company using a different accounting period from the tax year, the taxpayer may request to adopt the accounting period used by the group, parent company, or headquarters.

    2. If the nature of their activity requires using an accounting period different from the tax year.

  3. In case of changing the accounting period, the period between the end of the previous accounting period and the start of the new accounting period is treated as an independent accounting period, provided it is not less than six (6) months. If it is less, it is included in the first accounting period after the change.

  4. Taxpayers who wish to adopt a different accounting period must submit a request to the Authority when applying for registration or within a maximum of thirty (30) days before the end of the previous accounting period for which the taxpayer is about to submit the declaration and financial statements. The Authority's failure to respond to the request within sixty (60) days from the date of submission is considered an implicit rejection.

  5. The Authority may withdraw approval for adopting a different accounting period if there is a valid reason. The withdrawal takes effect from the end of the accounting period during which the withdrawal decision is made. The first accounting period after the withdrawal is treated in the same manner as the first accounting period after a change, according to Clause 3 of this Article.

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