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Doha should consider introducing advance ruling provisions for ensuring greater certainty in tax matters, according to KPMG in Qatar.Government could also consider granting exemptions from withholding tax (WHT) on a transaction-by-transaction basis as an alternative to the recently introduced concept of a "Trusted Entity" for WHT purposes, it said.On advance ruling provisions, KPMG said it will significantly enhance transparency and provide greater certainty in tax matters."These provisions enable taxpayers to obtain authoritative guidance on the interpretation and application of tax laws inspecific situations, thereby reducing ambiguity and the risk of future disputes," it said.KPMG also suggested implementing a mechanism for the advance collection of corporate tax liabilities to assist both taxpayers and the country in managing their cash flows more effectively.On simplification of administration of key tax matters; it said Qatar does not automatically apply a treaty benefit and consequently the WHT become a cost to either the payer, if it is being borne by the payer or the payee. Simplification in the administration of WHT may encourage cross border trade.On the recently introduced the concept of a "Trusted Entity" for WHT purposes, KPMG said entities with more than 1,200 WHT transactions a year, or with annual WHT payments in excess of QR10mn, may qualify for the status of "Trusted Entities," which are permitted to apply treaty benefits upfront.However, the responsibility rests with these entities to accurately assess and apply the appropriate WHT benefit under the relevant tax treaty. Failure to do so may result in substantial penalties."While this development is a positive step towards facilitating certain entities in claiming treaty benefits, it is important to note that the scope of this measure may be limited, as only a small number of entities are likely to meetthe qualifying criteria for Trusted Entity status," KPMG said.Furthermore, given the significant penalties associated with incorrect assessments, some entities may be reluctant to apply for "Trusted Entity" status, it added."As an alternative, it is recommended that Qatar consider granting exemptions from WHT on a transaction-by-transaction basis, similar to practices adopted in other jurisdictions," it said, adding this approach could provide greater flexibility and accessibility for a broader range of taxpayers.Similarly, a change in shareholding should not be denied solely on the basis of outstanding liabilities on Dhareeba or ongoing tax litigation against the company, KPMG said."A mechanism could be introduced whereby a company may provide a bank guarantee to cover any potential liabilities. In the event that the company fails to satisfy such liabilities, the bank would be obligated to make the payment," it said.On simplified filing, KPMG said an effort should be made to simplify the process for small entities."The tax authorities can establish a quantitative threshold to define small entities. Entities meeting this threshold could then be provided with the option to file tax returns based on a predetermined percentage of revenue, thereby reducing administrative burdens and facilitating compliance," it said. 

Doha should promote an AI (artificial intelligence)-powered energy management system in its hydrocarbon sector as KPMG in Qatar outlined sector-specific digital opportunities in times of conflict. Stressing that Qatar has the potential to enter the post-conflict period with stronger digital foundations as compared with its regional peers; it said “the challenge is not to start from zero, but to accelerate, integrate, and prioritise.” Qatar’s energy sector is the backbone of the economy, which makes it vulnerable and essential, making digital investments potentially yield significant systemic benefits, it said in a latest report. To maintain operations during disruptions, it is important to minimise dependency on onsite personnel and speed up recovery processes; it said, highlighting the vital role that could be played by digital enablement. In this regard, KPMG said there was a need to “promote an AI-powered energy management system with real-time infrastructure monitoring to detect the unplanned downtime before disruption which can improve the productivity and support infrastructure resilience.” There was also need to promote the simulation technology to help explore the interdependencies and damage scenarios and model recoveries to optimise the ‘back to normal’ scenarios. Finding that not all sectors are equally equipped to achieve resilience through digital transformation; it said in critical industries such as energy, finance, manufacturing, wholesale & retail trade, and logistics, the adoption of digital solutions can greatly accelerate the recovery process and strengthen resilience, enabling entities to respond more effectively to disruptions and adapt rapidly to changing environments. In the finance sector, there was a need to accelerate the implementation of digital payment infrastructure and cross-border settlement systems to maintain financial flows in case physical banking operations are disrupted. It also suggested expanding digital trade finance solutions to support small and medium enterprises and corporates when the traditional financing is inaccessible.In the case of manufacturing sector, KPMG recommended extending the adoption of AI- powered digital platform for inventory management and demand forecast across the manufacturing facilities to mitigate the out-of-stock risk. The need of the hour was large scale adoption of a digital supplier diversification platform that automatically identify and qualify alternative suppliers when primary sources are disrupted, it said. On wholesale and retail logistics, KPMG suggested promoting digital national infrastructure that integrate the various parties involved in the end-to-end SCM process for B2B sector. It also suggested adopting advanced AI technology to predict the logistic and custom disruption and offer what if scenarios to reduce the impact and promote resilience. Recommending digital business continuity, KPMG said there was a need for large scale adoption of unified national crisis communications platform integrating government, private sector, and civil society channels to ensure timely, accurate, and seamless information flow which leads to other disruption. There was also a need to adopt national business continuity registry platform allowing organizations to declare operational status, access government support programmes; promote AI-powered public information systems capable of detecting and countering misinformation during conflict periods, protecting public confidence in institutions and supply chains; and large scale adoption of digital continuity protocols for critical financial system operations, ensuring that core banking, payments, and settlement functions can operate under degraded physical infrastructure conditions.

Doha's national manufacturing strategy, which reinforces broader diversification by targeting high-value industries, will not only have ripple effect beyond industries but also slated to drive growth in infrastructure and real estate, alongside priority sectors, through trickle-down effect, according to KPMG in Qatar."The National Manufacturing Strategy serves as a central pillar within the Third National Development Strategy, reinforcing Qatar’s broader diversification agenda by targeting high-value, innovation-driven industrial growth, and positioning manufacturing as a core engine for building long-term economic resilience," KPMG in Qatar said in an article posted on a social media.Combining short-term, low-cost quick-win projects with longer-term, high-impact investments reflects a dual-track strategy that builds early momentum, lays the groundwork for systemic transformation, manages risk, and sustains stakeholder engagement through visible progress, according to the article.Highlighting the need for empowered execution through cohesive partnerships; the report said effective implementation hinges not only on the right strategy but also on the right actors, with the emphasis on solid, capable partnerships reflecting the recognition that policy ambition must be matched by public and private institutional capacity to drive results at scale.Suggesting priority sectors as growth catalysts; it said the targeted sectors are not only economically viable but are strategically selected to build competitive advantage by aligning with Qatar’s natural strengths, while the increased focus on industrialisation is expected to drive growth in the infrastructure and realty sectors alongside the priority sectors in the strategy.The priority sectors are pharmaceuticals, chemicals and petrochemicals, plastics, food and beverage, metal and fabricated metals, and construction materials, according to the national manufacturing strategy.On unlocking the potential in pharmaceuticals, KPMG in Qatar said it enhances national health security through local production of essential medicines by offering high value-added potential and opportunities for skilled employment.On plastics, which utilises petrochemical outputs to create high demand consumer and industrial products; the article said it encourages innovation in packaging, construction, and manufacturing applications.About focus on metals and fabricated metals, it facilitates infrastructure and industrial development through critical inputs by promoting higher value-added activities in metalworking and product assembly.On the potential in chemicals and petrochemicals, the article said it leverages Qatar’s abundant hydrocarbon resources for downstream diversification, supporting export growth and global competitiveness in industrial chemicals."As Qatar advances its national manufacturing strategy, the ripple effects will extend beyond industry, shaping the country’s infrastructure and real estate landscape in critical ways," it said, adding increased manufacturing activity would drive demand for purpose-built industrial zones, logistics hubs, and warehousing facilities.KPMG noted demand for accommodation, office space, and complementary developments such as retail and food and beverage outlets is likely to increase around emerging manufacturing clusters, supporting broader patterns of urban expansion.Growth in manufacturing would require robust transportation networks, utilities, sustainable, Eco-friendly, digital infrastructure to ensure seamless operations and connectivity, it said, adding coordinated planning will be essential to balance industrial growth with sustainability, zoning efficiency, and urban liveability.Highlighting that Qatar already has a well-established built environment, comprising extensive infrastructure and real estate developments distributed across various zones; it said further expansion of these sectors is expected to generate significant trickle-down effects across other areas of the economy."The evolution of these sectors has been shaped by a series of economic, geopolitical, and global events over the past decade, each influencing demand patterns and driving shifts in growth and investment across the broader landscape," it said.