GMT to have "significant implications" on the business environment and capital flows worldwide: GTA

The global minimum tax (GMT), which ensures that multinational enterprises with revenues more than 750mn euros are subject to a 15% effective minimum tax rate wherever they operate, will have "significant implications" on the business environment and the flow of capital to countries worldwide, according to a top official of the General Tax Authority (GTA).
"While Gulf countries implement modern tax systems and legislations, this significant development (global minimum tax) requires ongoing amendments to ensure the continued alignment with international standards while considering attracting both local and global investors," president of GTA Ahmed bin Issa al-Mohannadi told the third international conference on fiscal policy and economic development in Qatar, hosted by Qatar University.
Highlighting that in the recent years, the world has witnessed numerous developments in the international tax system, following the adoption of new tax policies by the Organisation for Economic Co-operation and Development (OECD), the latest being the endorsement of the GMT; he said: "This has significant implications on the business environment and the flow of capital to countries worldwide.”
The GMT, introduced by the Global Anti-Base Erosion (GloBE) Rules, is a key part of Pillar Two of the two-pillar solution, which aims to address the tax challenges arising from the globalisation and digitalisation of the economy.
Quoting the World Bank 2020 report, which ranked Qatar third globally for its favourable tax regime; al-Mohannadi said this recognition underscores Doha's position at the forefront of countries with strong tax systems, advanced digital infrastructure, and legislation in the tax field.
The GTA supports national and Gulf efforts to combat tax base erosion, profit shifting, and enhance local and regional economic environment through a robust tax system that promotes sustainable development, efficiency, and effectiveness within a legislative framework that adopts principles of governance and transparency, he said.
Qatar's Third National Development Strategy (NDS3) 2024-30 emphasises the need to build a leading regulatory environment conducive to attracting foreign direct investment and addressing regulatory challenges in the business sector through comprehensive legal and legislative reforms, according to him.
Qatar University president Dr Omar al-Ansari said it had recently introduced new academic programmes that reflect this direction, such as the minor in taxation at the College of Business and Economics.
"This programme has witnessed a high demand from undergraduate students at the college," he said, emphasising that such programmes contribute to providing the job market in Qatar and the region with graduates capable of dealing with evolving economic developments and challenges, including tax reforms and related tax policies and legislation.