QNA
DOHA
The General Tax Authority (GTA) on Tuesday organised a workshop to shed light on the mechanisms for implementing “Pillar Two” of the global minimum tax for multinational corporations.
Representatives from about 40 global companies and institutions operating in Qatar attended the event, which is part of the Authority’s efforts to enhance transparency, ensure compliance with international standards, and update companies on the latest tax
developments.
In a statement, the GTA emphasized that implementing Pillar Two in Qatar aims to promote tax equity between local and international companies by establishing a global minimum corporate tax rate of 15 percent. The workshop provided a detailed explanation of the Pillar Two rules, implementation mechanisms, and potential challenges that companies may face in this context. It also showcased best international practices related to the implementation of Pillar Two.
The discussions highlighted that Pillar Two will apply exclusively to multinational corporations with annual revenues exceeding QR3 billion, whether Qatari companies with foreign branches or international companies with branches in Qatar.
If the minimum tax is not collected locally, other jurisdictions will impose it on those companies.
The workshop concluded with an emphasis on the importance of continuous collaboration and coordination between the GTA and companies to ensure the successful implementation of Pillar Two and achieve its objectives.
In his remarks during the workshop, Director of the Tax Agreements and International Cooperation Department at GTA, Yousef Abdullah Al Dosari underscored the importance of such initiatives in equipping companies operating in Qatar with the necessary knowledge and tools to understand and implement Pillar Two. He reaffirmed the GTA’s commitment to providing all required support to taxpayers to achieve tax compliance.
The workshop saw significant interaction between company representatives and GTA experts, allowing participants to ask questions and discuss various aspects of Pillar Two. Several points regarding the implementation of the new rules and their implications were clarified.
The implementation of Pillar Two under the Base Erosion and Profit Shifting (BEPS) project follows the Cabinet’s approval of a draft law amending certain provisions of the Income Tax Law issued by Law No. 24 of 2018.
This marks a pivotal step toward enhancing transparency, competitiveness in the tax sector, and equal tax treatment nationwide.In October 2021, over 140 countries joined the G20 and OECD initiatives to implement the global rules for Pillar One and Pillar Two.
These initiatives aim to address the tax challenges arising from the digitalization of the economy and safeguard countries’ tax bases by establishing a global minimum corporate tax rate.
