Conditions for Applying to the Initiative

To benefit from the initiative, the taxpayer must fulfill the following conditions:

• Register on the Dhareeba system and ensure the accuracy of registration details, including:
• Company name
• Partner names
• Economic activity
• Addresses and contact numbers
• Ownership percentages
• Nationality of the partners

• Submit all tax returns, financial statements, and supporting documents accurately before applying for the initiative.
• Pay all outstanding taxes prior to submitting the application for the initiative.
• The taxpayer must undertake timely submission of tax returns and payment of taxes in the future and declare that all provided contact information is correct.

Note: Failure to comply with any of the above conditions will result in the taxpayer’s ineligibility to benefit from the initiative.

The initiative does not apply to:

• Companies that have been involved in legal proceedings for violating the Income Tax Law or the Excise Tax Law or are suspected of tax evasion.
• Oil companies that are subject to a tax rate of 35% or higher.
• Companies with an average annual revenue of QAR 50 million or more between 2014 and 2023.
• Financial penalties that were paid prior to the initiative’s effective date or those settled through an installment plan before the initiative.

Illustrative Examples

To clearly illustrate the terms and conditions of the initiative and highlight its benefits, below are examples of cases that may qualify for exemption from financial penalties.

Example No. 1
A Qatari company with 100% Qatari ownership did not register since the start of operations on June 30, 2022, and accumulated penalties until the end of December 2024. These penalties are estimated as follows:

• Failure to register: QAR 20,000
• Failure to submit the 2022 return within the specified deadlines: QAR 180,000 (QAR 500 per day, capped at QAR 180,000)
• Failure to submit the 2023 return within the specified deadlines: QAR 122,500 (QAR 500 per day, from May 1, 2023, to December 31, 2023)

To benefit from the initiative, the company must first register on the Dhareeba system and submit the overdue returns for 2022 and 2023. Once this is done, they can apply for the exemption.

 Total financial penalty exemption under the initiative = QAR 322,500

What steps should the company take to benefit from the initiative?

• The company must register on the Dhareeba system.
• Submit all overdue tax returns for 2022 and 2023.
• After completing the necessary steps, the company can submit a request for financial penalty exemption through the Dhareeba system to benefit from the initiative.

Example No. 2

A non-Qatari partner owns 49% of a fast-food restaurant. The business commenced in June 2020, with annual profits of QAR 500,000 for 2020 and QAR 1,000,000 for the following years through the end of 2024. However, the company did not register through the Dhareeba system or submit any tax returns since the inception of its activities and wants to benefit from the initiative. Is the company eligible?

The company must first register on the Dhareeba system, submit the overdue returns for the years 2020 to 2023, and pay the original tax due for all years. After these steps, the company will be eligible for exemption from the following fines:

• Failure to register within the specified deadline: QAR 20,000
• Failure to submit the 2020 tax return within the specified deadline: QAR 180,000 (QAR 500 per day, capped at QAR 180,000)
• Failure to submit the 2021 tax return within the specified deadline: QAR 180,000 (QAR 500 per day, capped at QAR 180,000)
• Failure to submit the 2022 tax return within the specified deadline: QAR 180,000 (QAR 500 per day, capped at QAR 180,000)
• Failure to submit the 2023 tax return within the specified deadline: QAR 122,500 (QAR 500 per day, from May 1, 2024, to December 31, 2024)
• Failure to pay taxes for the year 2020:

• Tax due = QAR 500,000 * 49% * 10% = QAR 24,500
• Late payment penalty = QAR 24,500 * 2% * 40 months = QAR 19,600
• Failure to pay taxes for the year 2021:

• Tax due = QAR 1,000,000 * 49% * 10% = QAR 49000
• Late payment penalty = QAR 49,000 * 2% * 32 months = QAR 31,360
• Failure to pay taxes for the year 2022:

• Tax due = QAR 1,000,000 * 49% * 10% = QAR 49000
• Late payment penalty = QAR 49,000 * 2% * 20 months = QAR 19,600
• Failure to pay taxes for the year 2023:

• Tax due = QAR 1,000,000 * 49% * 10% = QAR 49000
• Late payment penalty = QAR 49,000 * 2% * 8 months = QAR 7,840

Total financial penalty exemption under the initiative = QAR 760.900

Example No. 3

A home-based business owned by a Qatari entrepreneur, specializing in air conditioning maintenance services, registered on the Dhareeba system since its establishment in July 2019. However, the business has not submitted the required tax returns until December 2024. Is the business eligible for the initiative?

The business can benefit from the initiative by submitting simplified tax returns for the previous years, and is eligible for an exemption from the following penalties for late submission:

• Failure to submit the 2020 tax return within the specified deadline: QAR 180,000 (QAR 500 per day, capped at QAR 180,000)
• Failure to submit the 2021 tax return within the specified deadline: QAR 180,000 (QAR 500 per day, capped at QAR 180,000)
• Failure to submit the 2022 tax return within the specified deadline: QAR 180,000 (QAR 500 per day, capped at QAR 180,000)
• Failure to submit the 2023 tax return within the specified deadline: QAR 122,500 (QAR 500 per day, from May 1, 2024, to December 31, 2024)

Total financial penalty exemption under the initiative = QAR 662,500

Example No. 4

In 2025, a company benefited from the initiative to exempt financial penalties resulting from the late submission of tax returns, after pledging to submit returns and pay dues on the specified dates.

The company adhered to this commitment for one year. However, in 2027, the company once again submitted its tax returns and paid its dues late, outside the regular filing period. Consequently, the company forfeited its right to any future financial penalty exemptions, due to its breach of the three-year tax compliance pledge.

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