TaxSavvyQA

WHT in the accounts does not match WHT filed

Our accounts show foreign consulting fees but we never filed WHT. Will this affect the tax return?

The situation

Payments to non-residents for services used in Qatar usually need 5 percent WHT filed and paid by the 16th of the next month. The GTA compares expenses with WHT filings.

The law

  • Law No. 24 of 2018 on Income Tax (withholding tax): 5 percent WHT on interest, royalties, technical fees, commissions and service fees paid to non-residents with no Qatar PE; remit by the 16th of the next month
  • GTA Circular 5 (Dhareeba): From 1 November 2020 all returns, WHT and contract notifications are filed on Dhareeba

What it means for you

If you paid QAR 400,000 to foreign consultants with no WHT, the exposure is QAR 20,000 tax plus penalties. The expense may also be questioned in the return review. File the missing monthly statements, pay the tax, and then file the corporate return so the figures reconcile.

What to do

  1. List all foreign service payments by month.
  2. File missing WHT statements on Dhareeba.
  3. Pay the WHT and any penalties.
  4. Reconcile WHT with the accounts before filing the return.

We can do this for youAnnual corporate income tax return on Dhareeba for a foreign owned company or branch: QAR 6,500

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