Qatar and Short term: Difference between pages

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{{Infobox
|name        =
|bodystyle    = width:400px;


|titlestyle  =
1.
|abovestyle = background:#e9d7e0; padding:5px 0px;
|subheaderstyle =
|title        =
|above        = KEY COUNTRY FACTS
|subheader    =
|subheader2  =


|imagestyle  = padding:10px 0px;
In financial markets 'short term' usually means remaining maturities of up to and including one year.
|captionstyle =
|image        = [[File:Flag_qatar.png|border|160px|alt=Flag of Qatar]]
|caption      =


|headerstyle  = background:#e9d7e0;
There are some minor exceptions. For example in bond markets 'short term' can refer to original maturities of less than two years.
|labelstyle  = background:#e9d7e0;
|datastyle    =


|header1 =
| label1 = System of government:
|  data1 = emirate
|header2 =
| label2 = Population:
|  data2 = 2.12 million (2014 estimate)
|header3 =
| label3 = Currency:
|  data3 = Qatari riyal (QAR)
|header4 =
| label4 = FX regime:
|  data4 = conventional peg
|header5 =
| label5 = GDP:
|  data5 = US$213.1 (2013 estimate)
|header6 =
| label6 = FATF member:
|  data6 = yes, via GCC
|header8 =
| label8 = Treasury association:
|  data8 = [http://www.treasurers.org/actmiddleeast ACT Middle East]


2.


|belowstyle = background:#ddf;
''Financial reporting''.
|below      =
}}


==Financial regulatory framework==
For financial reporting purposes, short term borrowings and other liabilities are ones payable within a year, or the next financial reporting period, if shorter.
===Bank supervision===
The banking sector in Qatar is supervised, licensed and controlled by the Qatar Central Bank (QCB).
The Qatar Financial Centre (QFC) Regulatory Authority regulates and supervises financial service firms, including banks, which operate in the Qatar Financial Centre.


===Exchange controls===
Exchange controls are not applied in Qatar.


==Taxation framework==
== See also ==
There are two separate tax regimes in operation in Qatar and an entity is under the remit of only one regime. By default an entity is under the State of Qatar regime. Alternatively, an entity is under the remit of the QFC regime if the entity is licensed with the QFC.
* [[Balance sheet]]
 
* [[Bond]]
===Corporate taxation===
* [[Longer term]]
Tax is levied only on foreign companies’ income derived from activities carried out wholly or partly in Qatar. For joint ventures, only the foreign shareholders’ portion of the profit is taxable. Nationals from the Gulf Cooperation Council (GCC) countries are treated as Qatari nationals and consequently are not currently subject to income tax provided they are resident in Qatar. A company that is wholly Qatari or GCC owned and resident in Qatar will not be required to pay tax. A flat-rate tax of 10% applies; except for oil and gas companies, where a rate of 35% applies.
* [[Maturity]]
Under the QFC regime, income is taxable at a flat rate of 10%. Wholly Qatar government-owned QFC entities are exempt (there is no exemption for QFC entities that are wholly owned by Qatari or GCC nationals). Only local-source profits are taxable.
* [[Quoted rate]]
 
* [[Short]]
===Capital gains===
* [[Short dates]]
In general, gains arising from the sale of business assets and business interests are treated as ordinary income. Capital gains arising from the disposal of real estate and securities derived by natural persons are exempt from tax, provided they are not part of the assets of a taxable activity.
* [[Short-term investments]]
 
===Taxation of dividends===
A final withholding tax is levied on payments made to non-residents with respect to activities not connected with a permanent establishment in Qatar. The rate of withholding tax stated in the law ranges from 5% to 7%.
Withholding tax applies to royalties (5%), technical fees (5%), commissions (7%), brokerage fees (7%), director’s fees (7%), attendance fees (7%) and any other payments for services carried out wholly or partly in Qatar (7%). The law states that the rate of withholding tax on interest is 7% with certain exceptions.
There are no withholding taxes in the QFC.
 
===Transfer pricing===
Under local Qatar law there is no specific transfer pricing legislation; however, the anti-avoidance rules give the tax authorities the power to apply an arm’s-length value where an arrangement or transaction has been undertaken with one of the main purposes being to avoid the payment of tax. The anti-avoidance provisions specifically state that the comparable unrelated price (CUP) method should be used, unless approval is given by the tax authorities to apply an alternative OECD-approved transfer pricing method.
 
===Thin capitalisation===
There are no thin capitalisation rules in Qatar, but interest payments made by permanent establishment to its head office and related parties are not deductible for tax purposes.
 
===Indirect taxes===
There are no consumption taxes in Qatar.
 
''Tax information provided by Deloitte Touche Tohmatsu ([http://www.deloitte.com www.deloitte.com]) and Deloitte Highlight 2014.''
 
==Banking service provision==
The Qatari banking sector supports a high number of banks in comparison to its size and a number of large international banks have a presence in the country.
The banking sector currently contains 18 commercial banks, consisting of 11 local banks (including four Islamic banks) and seven branches of foreign banks. Conventional banking services are provided by seven local banks and all seven branches of foreign banks. The 11 locally-owned banks in Qatar account for around 97.5% of the sector’s total assets.
The banking sector is dominated by Qatar National Bank (QNB), which has a market share of over half of all banking assets. QNB is 50% state-owned through the Qatar Investment Authority (QIA) sovereign wealth fund.
The QIA took a stake in all locally-owned banks in 2008 (with the exception of QNB, in which it already owned 50%) to protect the sector from the effects of the global economic downturn. At the start of 2009, it purchased a further 5% of the capital of all national banks, except QNB. A further 5% of the capital of several domestic banks was purchased by the QIA in December 2009.
 
==Clearing and payment systems==
===Clearing systems===
There are three main payment and settlement systems in Qatar: the Qatar Payment System (QPS), QATCH, and the Electronic Cheque Clearing system (ECC). The National ATM and POS Switch (NAPS) processes card payments.
All banks and bank branches in Qatar participate in QPS, QATCH and the NAPS.
 
* '''''Qatar Central Bank Payment System (QPS)''''' – the real-time gross settlement (RTGS) system processes high-value and urgent interbank fund transfers. The QPS uses the SWIFT network for the transmission of payment messages and to communicate with participants. Payments are settled in real time with immediate finality.
* '''''National Automated Clearing House Solution (QATCH)''''' – launched in April 2010, QATCH is Qatar’s automated clearing house system for low-value (below QAR 250,000) bulk direct debit and credit payments. QATCH enables the exchange of interbank payment messages between banks in real time. In addition to direct debits, QATCH can also be used for direct deposits such as private and government salary and pension payments, dividends, subsidies and government transactions such as social security payments.
* '''''Electronic cheque clearing system''''' – the electronic cheque clearing system has been used to clear cheques in Qatar since 2001. The system uses cheque image exchange, rather than the physical movement of cheques, enabling the same-day clearing of cheques throughout Qatar. The ECC processes cheques above QAR250,000 on a real-time basis while cheques below QAR250,000 are processed on a net basis, at the end of each clearing day. Final settlement takes place across participants’ accounts held at the QCB.
 
===Payments===
Electronic funds transfer and cheques are the dominant form of cashless payments in Qatar in terms of both value and volume. Card payments are increasing in popularity as a result of an increase in point-of-sale (POS) terminals and ATMs. Direct debits and direct credit are also available.
* '''''Credit transfers''''' – credit transfers are used for high-value transactions and wage payments. Credit transfers can be initiated through e-banking systems for consumer payments.
* '''''Payment cards''''' – debit and credit card use is increasing in popularity in Qatar. There are also around 1.2 million ATM cards. All cards issued comply with EMV chip technology or standards. Each bank in Qatar has its own individual clearing and settlement arrangement with the respective card networks, predominantly MasterCard or Visa.
The number of ATMs has increased in Qatar along with payment card use. All banks operating in Qatar are members of the National ATM and POS Switch (NAPS) card payments process network. NAPS connects the ATM network to other GCC member states via the GCCNet ATM network.
* '''''Direct debits''''' – direct debits in Qatar have primarily been used for low-value recurring transactions such as utility payments. Payments are processed through QATCH for next-day settlement.
* '''''Cheques''''' – cheques are the most popular form of cashless payment in Qatar and their usage has increased dramatically in recent years. Cheques above QAR250,000 are processed on a real-time basis while cheques below QAR250,000 are processed on a net basis at the end of each clearing day.
 
==Cash and bank account management==
===Interest-bearing accounts===
Interest is available on savings and time deposit accounts. Interest is payable on current account balances, with approval from the QCB.
Most banks in Qatar have now implemented a minimum initial deposit scheme for opening saving or current accounts. Customers are usually required to deposit a minimum initial QAR3,000 for savings accounts and QAR5,000 for current accounts.
 
===Account opening requirements===
Residents are permitted to hold domestic and foreign currency accounts both domestically and abroad. Resident domestic currency accounts are fully convertible into foreign currency.
Non-residents are permitted to hold domestic and foreign currency accounts in Qatar. Non-residents cannot open current accounts. Non-resident domestic currency accounts can be converted into foreign currency with prior approval from the QCB.
 
===Money laundering===
Qatar has implemented anti-money laundering legislation (including Law No 3 of 2004 on Combating Terrorism and Law No 4 of 2010 on Combating Money Laundering and Terrorism Financing). The Financial Information Unit issued a Guide to Money Laundering and Terrorism Financing Suspicious Transaction Reporting in April 2010. The Qatar Financial Centre Regulatory Authority (QFCRA) has also issued related Regulations and Rules.
Qatar is a member of the Gulf Cooperation Council (GCC), which is a member of the Financial Action Task Force (FATF). It is also a member of the Middle East and North Africa Financial Action Task Force (MENAFATF).
Qatar has established a financial intelligence unit (FIU), The Financial Information Unit, within the Central Bank of Qatar, is a member of the Egmont Group.
 
Supplied by BCL Burton Copeland ([http://www.bcl.com www.bcl.com]). Data as at March 2014.
 
===Cash concentration===
Cash concentration is permitted in Qatar and is usually offered by international banks.
 
===Cross-border issues===
Cross-border cash concentration is permitted in Qatar and is offered by international banks.
 
===Notional pooling===
Notional pooling is available in Qatar.
 
===Electronic and internet banking===
Electronic banking is widely available from the larger commercial banks in Qatar.
Most banks offer some kind of internet-based balance reporting and transaction initiation services, although these are mainly used by businesses. In 2011, the QCB unveiled the Qatar Electronic Payment Gateway (Q-Pay) to facilitate real-time payments for online transactions. Q-Pay is based on an electronic wallet system and allows card holders (debit and credit cards) to make online payments in real time. Mobile money transfer services are also offered in Qatar by the major telecom network providers.
 
==Liquidity management==
===Short-term investments===
Short-term investments include:
* '''''Treasury bills''''' – the Qatari government issues T-bills, generally for maturities of less than one year.
* '''''Repurchase agreements (repos)''''' – repos are available from commercial banks in Qatar, using government securities as collateral.
* '''''Term deposits''''' – time deposits are available in QAR and foreign currency, with interest paid on maturity. Maturities for time deposits are usually between one month and a year.
* '''''Certificates of deposit (CDs)''''' – CDs (certificates of deposit) are available in Qatar, with a range of maturity dates.
 
===Short-term borrowing===
Borrowing instruments include:
* '''''Overdrafts''''' – overdrafts are available on current accounts from most banks.
* '''''Bank lines of credit and loans''''' – loans and lines of credit are offered by commercial banks in Qatar.
* '''''Commercial paper''''' – there is a commercial paper market in Qatar.
 
==Websites==
'''Qatar Central Bank'''
* [http://www.qcb.gov.qa http://www.qcb.gov.qa]
'''Qatar National Bank'''
* [http://www.qnb.com.qa http://www.qnb.com.qa]
'''Commercial Bank of Qatar'''
* [http://www.cbq.com.qa http://www.cbq.com.qa]
'''Doha Bank'''
* [http://www.dohabank.com.qa http://www.dohabank.com.qa]
'''Qatar Financial Centre'''
* [http://www.qfc.com.qa http://www.qfc.com.qa]
'''Qatar Financial Centre Regulatory Authority'''
* [http://www.qfcra.com http://www.qfcra.com]
'''Ministry of Economy and Finance'''
* [http://www.mof.gov.qa http://www.mof.gov.qa]
'''Qatar Chamber of Commerce and Industry'''
* [http://www.qatarchamber.com http://www.qatarchamber.com]
'''General Secretariat for Development Planning'''
* [http://www.gsdp.gov.qa http://www.gsdp.gov.qa]
'''Qatar Exchange'''
* [http://www.qe.com.qa http://www.qe.com.qa]
 
[[Category:Book_Export]]

Revision as of 18:14, 12 November 2016

(ST).

1.

In financial markets 'short term' usually means remaining maturities of up to and including one year.

There are some minor exceptions. For example in bond markets 'short term' can refer to original maturities of less than two years.


2.

Financial reporting.

For financial reporting purposes, short term borrowings and other liabilities are ones payable within a year, or the next financial reporting period, if shorter.


See also