What’s the 100% Financial Penalty Exemption Initiative?
The Conditional 100% Financial Penalty Exemption Initiative aims to support and encourage taxpayers to voluntarily comply with tax obligations and assist them in easily and conveniently regularizing their tax status. The initiative significantly enhances the efficiency of the State of Qatar’s tax system, thereby promoting a culture of mutual trust and cooperation between taxpayers and the General Tax Authority.
The initiative offers full exemption from all financial penalties under the Income Tax Law Promulgated by Law No. (24) of 2018 and its amendments, and Law No. (25) of 2018 on Excise Tax.
Duration of the Initiative:
The initiative will be valid for a period of 6 months, commencing from March 1 2025.
Eligibility for the 100% Financial Penalty Exception Initiative:
To enjoy the benefits of the initiative, the taxpayer must register on the Dhareeba Platform and ensure the accuracy of registration details, including:
- Company name
- Partners’ names
- Type of economic activity
- Addresses and contact numbers
- Ownership percentages
- Nationality of the partners
The taxpayer must also ensure the following conditions are met:
- Submit all tax returns, financial statements, and supporting documents accurately before applying for the initiative.
- Pay all outstanding taxes before applying for the initiative.
- The taxpayer must ensure that they submit tax returns and pay taxes on time in the future and declare that all contact information provided is correct.
Note: If the taxpayer doesn’t meet any of the above conditions, they won’t be able to enjoy the benefits of the initiative.
The following conditions and enterprises are excluded from this initiative:
- 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 QR 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 instalment plan before the initiative.
