11/10/2021

The Director General of the Income and Sales Tax Department, Dr. Hussam Abu Ali, said that the department seeks continuously and vigorously to raise the efficiency of auditing and auditors in the department and to build their capabilities in a way that enables them to apply best practices in auditing the files of multinational companies and related companies in a way that achieves tax justice and removes any injustice against the taxpayers.

Abu Ali explained that the Transfer Pricing Regulation No. (40) for the year 2021 was issued with the aim of enhancing tax transparency and setting the necessary controls to prevent tax evasion and avoidance and to stabilize transactions in tax treatment in accordance with international practices. Executive instructions No. (4) for the year 2021 was issued as well, which is related to transfer pricing for the purposes of income tax..

The Director General of the Income and Sales Tax Department said a unit has been created for multinational companies to facilitate taxpayers from multinational companies and related companies and to deal with them in accordance with international practices.

A technical committee was formed to list the files of multinational companies in preparation for transferring their files to the newly created unit on the department's organizational structure.

The Director General indicated that, in order to qualify the auditors and prepare them to carry out their duties in this unit, a workshop was held on transfer prices and international taxes and to see international practices in this field under the supervision of an international expert.

The workshop lasted for three weeks at the tax institute of the department in cooperation with the public financial management and administration project in a way that enables participants to apply best practices in auditing the files of multinational companies and related companies and to address any distortions and imbalances, as well as enabling them to study the reports submitted by companies according to the law.

The participants in the workshop were subjected to an exam, and based on the results of this exam, a head of the unit was selected and appointed, as well as the selection and appointment of auditors in this unit.

On the other hand, the Director General of the Income and Sales Tax Department decided to continue meeting with the heads of departments in the technical directorates in order to inform them about the concepts of transfer prices and the technical skills to deal with them and to check their files for the purpose of facilitating these companies.

The department will continue to hold a transfer pricing workshop for the concerned auditors in a sequence to provide them with technical and applied skills that will enable them to acquire expertise and skills in auditing and completing the files of multinational companies and related companies.