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Qatar mainly exports liquefied natural gas, Petroleum products, fertilizers and
steel. Some of its main export partners are Japan, South Korea, India, China,
Singapore and UAE. Among imported products are machinery and transport
equipments, foods and chemicals. Qatar mainly imports from US, China, UAE,
Germany, Japan and UK.
Taxes
Some companies come to Qatar thinking it is a tax-free zone – it’s not! While
there is no personal income tax in Qatar, foreign-owned firms must pay a tax on
corporate income. The rate is a sliding scale ranging from 0% on less than
100,000 QR to 35% on more than 5 million QR. (Since U.S. firms also pay U.S.
taxes on corporate income, companies considering the Qatari market should be
Analysis on Aluminium Export from India
Group 5 Page 2
aware that this requirement essentially results in ‘double taxation’.) Certain tax
exemptions are allowed in Qatar depending on whether the activities of the
foreign firm are directly benefiting Qatar; incorporating modern technology; and/or
fulfilling a strategic goal of the government.
Qatar ranks 83rd out of 189 countries in The World Bank’s Ease of Doing
Business survey for 2018. Qatar was ranked as the easiest country in the world
to pay taxes, and also fared well in the categories of dealing with construction
permits (19th), registering property (26th) and getting credit (44th)3.
Middle East country, Qatar had been always in news due to its political instability
from last few years5.
- Because from table 2, we can easily refer that Qatar was importing aluminium
from India from last decade but there are some uncontrollable factors that
affected the numbers by huge.
- The exports
orts to Qatar significantly decreased from 4,445.79 Lacs in 2014-15
2014 to
6
573.68 Lacs in 2015-16 .
- After that in 2016-17 there were no exports and then again in last 2 years the
exports are somehow geared up.
Diplomat Crisis
One is Qatar's support for Islamist groups. Qatar acknowledges that it has
provided assistance to some, such as the Muslim Brotherhood, but denies aiding
militant groups linked to al
al-Qaeda or so-called Islamic State (IS)7
7.
The other key issue is Qatar's relations with Iran, with which it shares the world's
largest gas field. The Shia Muslim power is Sunni Muslim-ruledruled Saudi
Sau Arabia's
main regional rival.
Political Instability
Diplomat Crisis-
Low FDIs & FIIs
Gulf Qatar Rift
Since 2017 Qatar has been subject to a boycott by Saudi Arabia, the UAE,
Bahrain and Egypt (the Arab Quartet), creating a deep rift in a region
already beset by civil wars and insurgencies.8
The petroleum and gas industry is most important in Qatar and accounts for
around 70% of all government revenue. Thanks to this sector Qatar has the
highest per capita income and lowest unemployment rate in the world. In
addition, Qatar has growing communication and tourism industries which have
helped the continued economic growth. In 2009, Qatar had one of the fastest
growing economies in the world.10
Since independence in 1971, relations between the west and Qatar have been
open and mutually fulfilling. Qatar joined the western led allied forces in the
1990-1991 Gulf War and continues to house American military
personnel. Understanding how Qatar’s economic and political history impacts
business and relationships in Qatar is important if you wish to be effective
working with Qataris.
STEPIN Analysis
DO not expect to need to cover your hair in Qatar unless you visit a
mosque.
Technical- Qatar is great exporter of oil and gas and it has made the made the
maximum utilization of resources and it standard trade activities with various
European countries. It will get quick progress in manufacturing and Qatar is ready
to welcome every technological development in any field.
Economic- Rich country and the country is peaceful, so there are enough
chances for the industrialists and entrepreneurs to develop their business. It is
going to become the big business hub in coming years & they have rich natural
resource reserves for oil & gas.
Natural & Environment- The government has shown its activeness to make the
legislation for the protection of environment. They want to ensure clean and
green atmosphere, which can give good outlook of the country and it will
welcome the international investors to come and invest in various businesses and
industries.
India has made efforts to actively engage with QIA (Qatar Investment Authority)
and try to increase the bilateral trade. India had sent delegates to Qatar in order
to improve International Trade and signed long term contracts also. Also, both the
countries had taken active participation in International Trade Fair, 2018.12
1. Geographical circumstances
2. Cost of living standard
3. Currency fluctuation
4. Percentage of Usages of particular product section
5. Average earning of people in desire location
Penalty exposure13
Consequences of failure to submit, late submission or incorrect disclosures
Tax Collection and Administration Law, taxpayers failing to fulfil tax filing
obligations may be fined between QR 2,000 and QR 10,000. This would
apply to failure to file transfer pricing disclosure forms with the annual tax
return.
Taxpayers failing to maintain accounting books and other relevant
information, or failing to provide such information to tax authorities upon
request, may be fined between QR 2,000 and QR 10,000. This would
apply to failure to maintain or provide contemporaneous documentation.
Taxpayer continues to refuse to provide information or provides false
information, the tax authorities can assess taxable income on a deemed
basis, rather than on the basis of transfer pricing results.
Penalty Relief
As discussed above, the 5% interest surcharge can be avoided if
transfer pricing disclosure forms are filed and contemporaneous
documentation requirements are met.
1) https://commerce-app.gov.in/eidb/ecomxcnt.asp
2) https://www.ft.com/content/a945205c-7540-11e7-a3e8-60495fe6ca71
3) https://www.gulf-times.com/story/607394/India-s-exports-to-Qatar-jump-87-
in-2018
4) https://www.ceicdata.com/en/indicator/india/aluminum-exports
5) https://www.equitymaster.com/research-it/sector-
info/aluminium/Aluminium-Sector-Analysis-Report.asp
6) https://www.thehindubusinessline.com/economy/macro-economy/indias-
exports-to-take-a-hit-as-qatar-crisis-deepens/article9727926.ece#
7) https://reader.chathamhouse.org/gulf-divided-impact-qatar-crisis#
8) https://en.wikipedia.org/wiki/Qatar
9) https://www.reuters.com/article/gulf-qatar-business/international-
businesses-caught-in-qatar-crossfire-idUSL8N1JQ137
10) https://commerce-app.gov.in/eidb/default.asp
11) https://wiki.treasurers.org/wiki/Qatar
12) https://www.ey.com/gl/en/services/tax/international-tax/transfer-pricing-
and-tax-effective-supply-chain-management/2017-2018-ey-worldwide-
transfer-pricing-reference-guide-qatar
13) https://www.rsm.global/service/tax
Annexure:
Exhibits
Dated: 18/9/2019
Sorted on values of year 2014-2015
DOC-NIC
Department of Commerce
Export Import Data Bank
Export :: Commodity-wise all countries
DOC-NIC
Department of Commerce
Export Import Data Bank
Export: Commodity x Country - wise
Country: QATAR
S.No. \Year 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
1. Values in Rs. Lacs 4,445.79 573.68 265.90 653.03
2. %Growth -87.10 145.60
DOC-NIC
Country: CHINA P RP
S.No. \Year 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
1. Values in Rs. Lacs 125,472.89 186,130.85 39,702.54 18,772.26 17,107.39
2. %Growth 48.34 -78.67 -52.72 -8.87
DOC-NIC
Country: KUWAIT
S.No. \Year 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
1. Values in Rs. Lacs 2,314.41 2,002.28 5,344.62 1,837.54 3,762.68
2. %Growth -13.49 166.93 -65.62 104.77
DOC-NIC
Department of Commerce
Export Import Data Bank
Export: Commodity x Country - wise
Country: SLOVENIA
S.No. \Year 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
1. Values in Rs. Lacs 2,207.12 749.65 744.44 690.42 1,280.31
2. %Growth -66.03 -0.70 -7.26 85.44
DOC-NIC
Country: OMAN
S.No. \Year 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
1. Values in Rs. Lacs 1,944.36 36.31 503.18 303.53 31.97
2. %Growth -98.13 1,285.81 -39.68 -89.47
DOC-NIC