Keeping clear and accurate accounts is a basic part of doing business in Qatar. It supports financial planning, helps businesses meet their legal duties, and builds trust with regulators and investors. As Qatar’s tax system becomes more structured, the rules around financial reporting are tightening. Companies must now file income tax returns and other disclosures through the General Tax Authority’s Dhareeba platform. For any business operating in the country, maintaining proper records is a legal obligation and increasingly a point of regulatory focus.

Legal and regulatory framework

Qatar’s accounting and tax requirements are governed by Income Tax Law No. 24 of 2018, along with updates introduced under Law No. 11 of 2022. These laws lay out what businesses must do when preparing and reporting their financial statements. All companies are expected to follow International Financial Reporting Standards (IFRS), which are endorsed by the Qatar Financial Markets Authority and widely used across industries.

Recent changes have broadened the definition of permanent establishment (PE) and placed more weight on proving that a business has real substance in Qatar. These developments reflect a wider push for transparency and alignment with global tax practices. To support this transition, the deadline for filing corporate tax returns has been extended to August 2025, giving businesses time to adjust.

Key accounting obligations

Companies in Qatar are required to maintain clear and consistent financial records that reflect their actual business activity. These records are essential for preparing the annual income tax return, which must be filed through the Dhareeba portal. In some cases, businesses also need to report their Core Income Generating Activities (CIGA), particularly where economic substance regulations apply.

In recent years, the scope of what needs to be reported has widened. There’s now a stronger focus on ensuring that financial data lines up with declared tax positions. For listed companies, there’s also a 2.5% contribution to the Social and Sports Fund based on net profits. With oversight becoming more detailed, companies need to stay organised and keep their filings consistent with local requirements.

SME accounting challenges in Qatar

For many small and medium-sized businesses, managing the books is one of several competing priorities. Irregular cash flow, limited financing options, and tight margins can make it harder to stay on top of tax obligations. In some cases, owners are handling compliance themselves or relying on staff with limited experience in accounting.

Digital tools are helping, but adoption varies. Some firms still use paper-based methods or older systems, which leaves more room for error. Navigating Dhareeba or keeping pace with rule changes often adds to the workload, especially for newer companies or foreign-owned entities unfamiliar with local processes.

Key considerations for effective financial management

In Qatar, good financial habits go a long way. That usually means keeping an eye on how money moves through the business, checking for gaps, and making sure records are kept up to date. Some companies arrange audits. Even when not required, they help highlight problems early.

Digital tools are common now. Many businesses use them to log activity, track spending, and stay ready for tax deadlines. Budgets help too, especially with cash flow. Payment cycles can vary, so planning ahead matters. And it helps to have someone who knows what they’re doing, whether in-house or external, to stay on top of filings and avoid issues later.

Digitalisation and imminent VAT introduction

Bookkeeping in Qatar is getting more digital. Many businesses are moving to online systems or using fintech tools to handle their accounts. It helps with accuracy, cuts down on manual work, and fits better with how things like Dhareeba are now set up.

There’s also talk of VAT coming in at some point. If it does, companies will need to change how they manage invoices, reports, and tax records. It’s not in place yet, but planning ahead makes sense. Getting the right systems and support in place early could save trouble later.

How can Sovereign PPG help?

Sovereign PPG helps companies stay on top of their accounting and tax work in Qatar. This includes setting up systems, handling filings, and working with local bodies like the General Tax Authority. The team supports both new and existing businesses and works with clients across different sectors.

If you need help with compliance, accounts, or anything related to financial reporting in Qatar, get in touch. Call us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email Qatar@SovereignGroup.com, or fill in the contact form below.