Qatar’s General Tax Authority (GTA) has released Decision No. 4 of 2020, which requires certain taxpayers with related-party transactions to submit a transfer pricing (TP) declaration form with their 2020 tax return, and in some cases, to submit master and local TP files two months later. The first compliance obligation will be 30 April 2021 for taxpayers adopting the standard 31 December 2020 year end.
Qatar introduced TP rules in December 2019 as part of the Executive Regulations (ER) to Income Tax Law No. 24 of 2018.1 The ER established TP compliance and documentation requirements for entities in Qatar but required confirmation on threshold and submission deadlines. The Decision requires taxpayers to comply for years starting on or after 1 January 2020.
Entities resident in Qatar, and foreign entities with a permanent establishment in Qatar, are required to submit a TP declaration form through the GTA’s online Dhareeba system with their tax return if the value of their total revenue or assets exceeds QAR10m for the income year.
In addition, an entity whose total revenue or assets exceeds QAR50m for the income year and that has at least one group member outside Qatar must submit TP master and local files to the GTA by 30 June for the standard reporting year.
Taxpayers should assess the implications of the Decision on their business and ensure that they are able to meet the compliance requirements for the 2020 income year.
For additional information with respect to this Alert, please contact the following:
EY Consulting LLC, Qatar
EY Consulting LLC, Dubai
Ernst & Young LLP (United States), Middle East Tax Desk, New York
For previous coverage, see EY Global Tax Alert, Qatar introduces transfer pricing documentation requirements dated 15 January 2020.