February 01, 2023
Doha, Qatar – 1 February 2023: PwC Middle East in Qatar hosted its annual Tax seminar, “Back to Business - Navigating the changing Tax and business landscape in Qatar” on Wednesday, 1 February, at W Doha hotel.
Key tax stakeholders, analysts and media attended the event and PwC subject matter experts shared insights on the rapidly changing and evolving tax landscape in Qatar and the Middle East due to regional and global developments. The main topics that came under discussion included Global Minimum Tax, possible approaches to its implementation in Qatar and broader income tax reform, the possible implications of the introduction of VAT in Qatar if it were to happen, and best practices Qatar can derive from implantation in neighbouring countries. PwC Tax experts also discussed restructuring opportunities for Qatar based businesses to address global minimum tax challenges including domestic tax structuring options such as those through QFC or QFZ were also covered. Domestic Tax updates included current trends in tax audits, Dhareeba & GTA related updates, Transfer Pricing as well as updates on current objection and appeal processes. For large corporations, the use of tax technology outsourcing and existing PwC tools were also discussed.
Sajid Khan, PwC Tax & Legal Services Leader in Qatar, said: “Qatar has successfully hosted the FIFA World Cup 2022, and it continues to press ahead with the realisation of Qatar National Vision 2030 goals. I envisage Qatar will continue the momentum to build a sustainable economy which amongst others also requires delivery on various fronts including building a transparent and efficient tax environment and meeting its international and regional tax related commitments.”
Some of the major tax developments that Qatar will be considering is the commitment to the G20/OECD BEPS initiative and global minimum tax. This will require a carefully considered broader Domestic Tax reform. Qatar also needs to deliver on the GCC mandate to implement VAT. Analysts are also predicting the implementation of environmental carbon taxes globally will have a significant impact on the GCC region and Qatar given its energy rich status.
For major issues like implementation of global minimum tax and VAT however, whichever route is chosen, it should consider the impact on business of corporations in Qatar.
Sajid Khan added: “Domestic tax reform is also an opportunity to address key matters which would help the broader economy in Qatar both domestic corporations and inbound MNCs, but it is important to give enough time for preparation for which an early announcement is recommended. For effective tax systems to be developed and robust internal processes to be put in place, enough notice should be given for the market to implement the changes in a phased roll out.”
Mohammed Yaghmour, Tax & Legal Services Leader Middle East, said: “The GCC countries are pressing ahead with their respective national transformations and hence the economy and fiscal reform are at the top of government agendas in the region. Attracting Foreign Direct Investments is a key area of this focus and effective tax policy plays a significant role.”
He added: “Tax administrations like the General Tax Authority in Qatar, are considered to be innovative and digitally enabled. While a lot of progress has been made, a lot can still be done. Investments will be required in developing flexible tax laws and regulations as well as in systems and developing tax administration capacity. A level of exponential innovation and transformation means that in the next three to five years all countries in the GCC will innovate using tax technology solutions that will allow them to monitor and audit tax and taxpayers in real time.”
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