GTL Summary:

Cabinet Decision No. 39 of 2019, Article 13, specifies deductible provisions for banks and insurance companies. Banks may deduct provisions for doubtful debts following Qatar Central Bank instructions. Insurance companies can deduct provisions for current risks and unsettled compensation. The provision for current risks is capped at 10% of net income before certain deductions, unless otherwise instructed by the Central Bank. It clearly defines 'current risks' and 'unsettled compensation' to ensure financial institutions maintain adequate reserves while preventing excessive non-taxable allocations that could erode the tax base.

Document Type: ERS - Executive Regulations
Law: Income Tax Law 24 of 2018
Decision Number: executive-regulations-39-article-13
Year: 2019
Country: 🇶🇦 Qatar
Official Name: Article 13
Last updated at: 2026-02-23 12:13:40 UTC

SECTION 2 - TAX CALCULATION

Chapter 1 - Taxable Income

Article 13

Only the following provisions are deductible:

  1. Provisions for doubtful debts for banks and financing companies, according to the following conditions:

    1. These provisions must be made according to the limits and instructions issued by the Qatar Central Bank.

    2. If the purpose of the provision for doubtful debts ceases in any year, the portion of the provision deducted under Clause (A) of clause (1) of this Article must be returned to the taxable income.

  2. Provisions for current risks and unsettled compensation made by insurance and reinsurance companies, provided that these provisions are made according to the limits and instructions issued by the Qatar Central Bank. In the absence of these instructions, the provisions are deductible, provided that the provision for current risks does not exceed 10% of the net income before deducting these provisions, hospitality expenses, and other expenses stipulated in Article 8(1) of these Regulations, as well as donations and other amounts stipulated in Article 8(2) of these Regulations.

    The provision for current risks refers to the amount allocated by insurance and reinsurance companies at the end of the accounting period to meet their obligations towards risks that may occur for insurance policies issued before the end of that accounting period and are valid during the following accounting period.

    The provision for unsettled compensation refers to the amount allocated by insurance and reinsurance companies at the end of the accounting period to meet their obligations towards accidents that occurred and were reported before the end of that period but are still under settlement or have not yet been paid.

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