The General Tax Authority (GTA) hosted a workshop at the Ritz-Carlton, Doha, to discuss the implementation of the Pillar Two Global Minimum Tax for multinational corporations, on Monday, December 9, 2024. The event brought together representatives from around 40 multinational enterprises and corporations operating in Qatar. This initiative highlights the GTA's dedication to promoting transparency, aligning with international standards, and equipping businesses with valuable insights into the latest tax developments.

The workshop underscored that the State of Qatar’s adoption of the Pillar Two Global Minimum Tax for multinational corporations aims to establish a fairer tax environment by introducing a global minimum tax rate of 15%, ensuring parity between local businesses and multinational enterprises. The workshop provided an in-depth overview of the "Pillar Two" rules, detailing the mechanisms for their implementation and addressing the potential challenges companies might face. It also highlighted the best international practices related to the application of "Pillar Two."

The workshop highlighted that Pillar Two applies exclusively to global multinational companies and enterprises with foreign branches that generate annual revenues exceeding QAR 3 billion. This includes both Qatari companies with branches abroad and international companies with branches in the State of Qatar. Notably, if the minimum tax is not collected locally, other jurisdictions will impose it.

The workshop concluded by stressing the necessity of continuous collaboration and coordination between the General Tax Authority and companies, adding that such efforts are essential to ensuring the successful implementation of Pillar Two and achieving its intended objectives.

During the workshop, Mr. Yousef Abdullah Al-Dosari, Director of the Tax Treaties and International Cooperation Department, emphasized the importance of these initiatives in equipping companies operating in the State with the insights and resources necessary to comprehend and implement Pillar Two. He also reaffirmed the Authority’s commitment to providing support to all taxpayers to promote and ensure tax compliance.

The workshop facilitated engagement between company representatives and GTA’s experts. Participants had the opportunity to ask questions, delve into various aspects of "Pillar Two," and gain a clearer understanding of the implementation of the new regulations and their implications.

The implementation of Pillar Two under the Combating Base Erosion and Profit Shifting (BEPS) project has been approved by the Council of Ministers through a draft law amending specific provisions of the Income Tax Law promulgated under Law No. 24 of 2018. This step marks a crucial advancement in promoting transparency and competitiveness within the tax sector and ensuring uniformity in tax regulations across the State.

In October 2021, more than 140 countries endorsed the initiatives put forward by the G20 and the OECD to implement the global regulations defined in Pillar I and Pillar II. These measures are designed to tackle tax challenges arising from the digitalization of the economy and to safeguard national tax bases by establishing a global minimum tax for multinational corporations.