Worldwide transfer pricing reference guide 2014

Qatar (continued)
Documentation requirements (continued)
A written approval to use an OECD authorized transfer pricing method other than the CUP method may be obtained from the PRTD in
advance of the related party transactions taking place. In the application, a transfer pricing study should be
submitted along with an explanation of why it is not possible to use the CUP method and why an alternative OECD-approved method is
appropriate.
QFC tax regime:
The burden of proof is on the QFC registered taxpayer to establish that the actual conditions are consistent with the arm’s length
conditions. There are four classes of records or evidence that will need to be considered:
• Primary accounting records
• Tax adjustment records
• Records of transactions with associated business
• Evidence to demonstrate an arm’s length result (this includes a description of the intercompany transactions and a functional analysis)
A transfer pricing study is specifically recommended where there is a risk that it may be perceived that QFC registered taxpayer’s
intercompany transactions are not based on arm’s length principle, e.g., the taxpayer is incurring losses during the taxable year, or
profits appear lower than previous years or compared to competitors in the industry, among other exceptional circumstances.
Documentation deadlines
State tax regime:
There is currently no requirement for contemporaneous transfer pricing documentation or for documentation to be submitted to the
PRTD together with the filing of tax declaration.
A transfer pricing study should be submitted along with the application to use a transfer pricing method other than the CUP method. The
study may also be required by the PRTD during the tax review process.
QFC tax regime:
The TP Manual does not state that the taxpayer must file or have transfer pricing documentation completed at the time of filing its tax
return. However, it is the assumption of the QFCA Tax Department that the QFC taxpayer will assess its intercompany transactions to be
arm’s length prior to completing its tax return, thus essentially necessitating the need to prepare an analysis of its intercompany pricing.
Statute of limitations on transfer pricing assessments
State tax regime:
Transfer pricing assessment is a part of the regular corporate income tax audit by the PRTD. The statute of limitations to complete a
regular tax audit is five years following the year in which the taxpayer submitted the tax return.
Where the taxpayer fails to submit the tax return, the right of the PRTD to assess the tax and financial penalties related thereto shall
expire 10 years after the taxable year in respect of which the taxpayer did not file the return. Where the taxpayer fails to register with the
PRTD, the 10 year period shall start from the date of discovering the activities of the taxpayer by the PRTD.
QFC tax regime:
The time limit for the QFCA Tax Department to conduct tax assessment is six years after the end of the accounting period to which it
relates.
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