EY seminar supports Qatar’s businesses in navigating region’s evolving tax landscape

Tax experts and the officials from the Ministries of Finance as well as Commerce and Industry have deliberated on key developments, especially Base Erosion and Profit Shifting (BEPS) Pillar 2 and transformational changes to the existing Income Tax (IT) Law.These were among the important discussion points at the Ernst and Young (EY) hosted Qatar Annual Tax Seminar 2024, which provided an overview of the major developments on the tax front in Qatar and the wider region over the last 12 months.In May 2023, the Qatar government issued the amendments to the executive regulations to the Income Tax law that redefine the application of tax for Qatari companies operating in other jurisdictions and foreign branch entities based in Qatar.In addition, the sessions explored the state of the country’s economy and the opportunities it presents to companies and investors, as well as international tax reforms and their impact on the local tax environmentThe seminar examined regulatory updates and recent tax trends across the Middle East and North Africa region with a focus on the GCC or Gulf Co-operation Council, which affect Qatari businesses operating in other jurisdictions.These included the implementation of corporate income tax (CIT) in the UAE and Bahrain, and the new draft CIT law in Saudi Arabia."Keeping up to date with any changes in tax regulations is crucial for businesses to make informed decisions," said Ahmed Eldessouky, EY Kuwait, Qatar and Oman Tax Leader.While last year’s seminar touched upon the upcoming changes to the Income Tax Law, he said this year, it took a deep dive into the amendments to the executive regulations and their implications for businesses operating in Qatar."The takeaways from the event will help taxpayers assess how these amendments will affect their tax compliance obligations and potential tax liabilities," according to him.Kown for its dynamic tax landscape, Qatar is proactively working to increase transparency and optimise its tax regime with the aim of stimulating growth and development in line with the Third National Development Strategy (NDS3) under Qatar National Vision 2030.The country is expanding its tax treaty network, notably with Kuwait, Saudi Arabia and Egypt. The nation has also joined the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework (IF) on BEPS, which seeks to ensure that multinational enterprises pay a fair share of tax wherever they operate.Kevin McManus, EY Qatar International Tax and Transaction Services (ITTS) Partner, said the 15% global minimum tax, BEPS Pillar 2 requires multinational enterprises (MNEs) to familiarise themselves with the Global Anti-Base Erosion (GloBE) rules and meet increased compliance obligations. "Addressing these areas will be critically important to support the business community’s overall ability to comply with the evolving taxation regulations," he said.EY provides companies with support in responding to the latest developments shaping the tax landscape in an agile and efficient way, he added.