QU launches conference on international tax reform and impact on GCC Countries

Qatar University (QU) Tuesday launched the Second Conference on Fiscal Policies and Sustainable Development, under the title 'International Tax Reform and its Impact on GCC Countries.'The event is organised by QU's College of Business and Economics in co-operation with the Qatar Financial Centre (QFC), University of New South Wales (Australia) and Queensland University of Technology (Australia). A large number of experts and decision-makers in the economic field from inside and outside Qatar joined the conference. The topics discussed include the global minimum tax and its impact on the international flow of capital, its reflection on tax policy in the Gulf countries, the problems of tax implementation, tax reform and value added tax in the Gulf countries, and future plans for the project to measure the burden of tax compliance.QU president Dr Hassan bin Rashid al-Derham, said that the institution's participation in the conference demonstrates the interest in discussing global economic and financial developments that have an impact on the country's economy, business activity, and capital inflows, and making recommendations that will help the decision-makers.It was pointed out that in order to minimise reliance on the oil and gas sector and stabilise economies, GCC countries are diversifying their economies away from oil and gas to other sources of government revenue. The economic diversification policies focus on specific sectors such as finance, manufacturing, tourism and hospitality, and sports through encouraging private investment and FDI. Tax incentives are the most common type of government incentives, which generally grant tax holidays to FDI investment whether inshore or offshore investment.The recent development in international taxation led by the Organisation for Economic Cooperation and Development (OECD) with regard to harmful tax competition under Action 5 and the guidelines of global minimum tax under Pillar 2, have raised challenges to the sustainability of granting tax incentives to attract FDI in developing countries in general and GCC countries in particular. This, in turn, increases the pressure on GCC countries to reform their tax policies in order to align with international tax norms and practices.GCC government initiatives to diversify government revenue has been reflected in a unified Value Added Tax Framework in 2017, which resulted in the introduction of VAT in Saudi Arabia and the UAE in 2018, followed by Bahrain and Oman. Kuwait and Qatar are contemplating to introduce VAT in the near future. Accordingly, the conference will discuss: Tax reform in GCC, and global minimum tax, introduction of VAT, and tax compliance challengesQFC CEO Yousuf Mohamed al-Jaida observed that the conference will address the main challenges facing tax authorities and taxpayers when it comes to implementing VAT. He stressed that the commitment to applying international tax standards did not affect the attractiveness of the QFC tax system, whether regionally or globally. The QFC tax system provides clear and transparent regulations and administrative procedures to more than 1,500 international financial companies and other service companies registered on its business platform.Dr Rana Sobh, dean of the College of Business and Economics, said the conference is also part of the efforts to conduct applied research and maximises its impact on the business environment and society locally and regionally.