Circular of the GTA President No. 3 of 2018
Excellencies / Ministers
M /s. Heads of government agencies and public authorities and institutions
M /s. Taxpayers and Auditor's Offices
Al-Doha
With reference to the provisions of the Income Tax Law promulgated by Law No. 21 of 2009, especially Articles 11, 20 and 41 thereof. You are kindly requested to follow the below instructions:
Withholding the tax and submitting the same to calculate the tax:
Commitment to applying the (attached) Circular No. 2/2011 and 3/2011 regarding withholding tax for payments to taxpayers who are not registered in the Commercial Register or registered for an activity of less than one year in exchange for activities not related to a permanent establishment in the State.
Accordingly, pursuant to the provisions of Article 2/11 of the aforementioned law and the circulars issued by the Ministry of Finance, such payments shall be subject to withholding tax.
Providing the Tax Department with some data:
Adherence to delivering to the Tax Department the withholding forms (2-1), attached to the bank's notice of the deposited amounts before the sixteenth day of the following month related to payment, in accordance with Article 20 of the Tax Law No. 21 of 2009.
The Ministry would like to mention that the non-application of withholding tax shall result in the imposition of a financial penalty equivalent to the amount of the tax that was not withheld, in addition to the payment of the amount of the tax due, in accordance with Article 41/4 of the aforementioned law.
Best Regards,
//Signature Affixed//
Ali Sharif Al-Emadi
Minister of Finance