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Implementation of Country-by-country reporting, Common Reporting Standards and Value Added Tax

KPMG in Qatar provides an overview of the CbCR requirements, CRS reporting and updates on VAT implementation.

Implementation of Country-by-country reporting

Further, to signing of the Multilateral Competent Authority Agreement on the Automatic Exchange of Country-by-Country Reports (CbCR), Qatar published the reporting requirements in the Official Gazette on 9 September 2018. The CbCR requirements came into effect on 10 September 2018.

The Qatar CbCR requirements will also be based on the model CbCR legislation provided in the Base Erosion Profit Shifting (BEPS) Action 13.

Multinational enterprises (MNEs) which have a consolidated group revenue in the immediately preceding fiscal year greater than QAR 3 billion (EUR 700 million) are required to prepare and submit a CbCR to the Qatari Competent Authority (QCA).

Constituent entities of MNEs (i.e., a business unit of the MNE group that is included in the consolidated group for reporting purposes) which are resident in Qatar should notify the QCA,

  • if they are designated as the ultimate parent entity or the surrogate parent entity of the MNE,
  • if they are not the parent entity, they should inform QCA of, the identity and the place of residence of the parent or surrogate parent

These notifications must be made before the end of the concerned reportable year, with the exception of those related to 2017, which must be reported before 31 December 2018 or any other date as determined by the QCA.

The CbCR is effective in Qatar for all financial years starting on or after 1 January 2017 and must be submitted within 12 months from the end of the reportable financial year.

Common Reporting Standards

On 10 November 2017 Qatar signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and the Common Reporting Standard Multilateral Competent Authority Agreement (“CRS MCAA”) and decided to adopt and begin reporting under CRS from 2018.

Taking the plan forward, the Ministry of Finance (“MoF”) issued Circular No. 1 of 2018 specifying the procedures and guidance for the implementation of and reporting under CRS in Qatar. Further, the MoF also sent out instructions to access the newly designed CRS reporting tool to be used in Qatar. As advised by the MoF, the CRS reporting for Qatar shall be done via manual input or using XML schema files. The extended deadline to comply with requirements of the Common Reporting Standards (CRS) for the year 2017 in Qatar is 27th September 2018.

Value Added Tax

Latest developments indicate VAT to be implemented in Qatar during 2019. It is also expected that Qatar VAT legislation will be published later this year.


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