According to Qatar tax legislation, any business activity conducted in the state of Qatar is liable to the corporation or withholding tax. An “activity” has been described under Qatar’s income tax law as any occupation, service, trade, profession, or the execution of a contractual arrangement, or any other enterprise for profit. Foreign partners must pay income tax whether they operate through local corporations, local branches, permanent establishments, or in a joint venture with foreign enterprises.

The Gregorian calendar is used for income tax reasons in Qatar. If the firm was not started on January 1st, a taxpayer may ask to have his financial statements prepared for twelve months ending on a day other than December 31st. The initial accounting period may last for longer than a year. It should not, however, be less than six months or more than 18 months. As long as the tax administration has not granted permission to use a foreign currency, a taxpayer should keep his accounting records in Qatari Riyals.