The general tax authority in Qatar in June 2019 issued a circular providing further updates and clarifications for country-by-country (CbC) reporting obligations in Qatar.
In late 2018, CbC reporting was suspended for 2017, and guidance provided updated requirements for filing CbC notifications and CbC reports for the financial year beginning on or after 1 January 2018. Read TaxNewsFlash
Reporting period and due date
The CbC notification and CbC filing requirements are effective for the financial years beginning on or after 1 January 2018. The CbC notification and the CbC report are required to be submitted within 12 months as of the last day of the reporting financial period. Thus, for the financial year ending 31 December 2018, the due date for the CbC reporting will be 31 December 2019.
Entities required to submit CbC reports
Entities meeting the following criteria must file a CbC report:
Entities required to be included in CbC report
The financial and business data of the following entities must be covered in the CbC report:
Entities not required to file CbC report
Any constituent entity resident in Qatar for tax purposes when the ultimate parent entity is resident outside Qatar (non-Qatari ultimate parent) is not required to file CbC reports in Qatar until further notification, and also will not be required to submit a CbC notification about the identity of the reporting entity or its place of residence.
CbC report content, submission method, and penalties
The CbC report must include the information as described in the CbC reporting model as made available in the OECD’s base erosion and profit shifting (BEPS) Action 13 final report.
The CbC reports must be prepared keeping in perspective the entire group operation, in various countries, because the Qatar tax authority will automatically share the report with the authorities of the countries in which the MNE operates. Accordingly, it will be critical for the reporting MNE to gather consistent and accurate CbC reporting data, analyze this data to review outliers and key trends, and produce a robust CbC report with supporting narrative and assumptions.
For more information, contact a KPMG tax professional in Qatar:
Barbara Henzen | +974 445 76 444 | firstname.lastname@example.org
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