Regarding Transfer Pricing in Qatar, the General Tax Authority has conducted a webinar on the 2nd of February 2021 and verbally highlighted that entities with related party transactions and having total assets, or Revenue over QR 10,000,000 (ten million), are required to file Transfer pricing disclosure form for the financial year beginning 1st January 2020 onwards along with the Income Tax return on Dhareeba portal. The Transfer Pricing disclosure form consists of information relating to Taxpayer's related party' transactions, including the method applied to ascertain the arm's length nature. Furthermore, the GTA has verbally communicated that taxpayers should also prepare and maintain proper supporting documents for the transfer pricing documentation that supports the transactions with related parties. Knowing that the deadline is approaching, all Taxpayers with related party transactions should be ready for this substantive subject to avoid any challenges during the filing stage. Hence, taxpayers should proactively assess their current situation with the related party transactions and ensure that they are ready for submission along with the required information and/or documents that the GTA would require while filing the Income Tax Return through the Dhareeba portal.

Key highlights for taxpayers:

The Transfer Pricing Pattern is a major development in the General Tax Authority for the entities with related party transactions. Therefore, this new subject requires from the Taxpayers thorough assessment of the transfer pricing documentation. We have highlighted below the significant key considerations that the taxpayers should assess knowing that the deadline of filing the return is approaching.

1. Have you identified your related party transactions in your accounting books in accordance with the Executive Regulation?
2. Have you assessed which transfer pricing method inline with OECD guidelines would apply to your company? If the Comparable Uncontrolled Price (CUP) method does not apply, then you have to consider other methods that require the GTA's approval.
3. Have you prepared the necessary transfer pricing documentations (Master File & Local File) to support the disclosures in the Transfer Pricing Form.

If you need any help or support regarding the subject matter, you can contact us on [email protected], and our expert will communicate with you directly. Our expert will assist you to comply with Transfer pricing documentation requirements which includes an analysis of the functions, assets and risks, selection of the most appropriate transfer pricing method, benchmarking analysis etc. For more info, you can visit our website https://www.antonioghaleb.com/