GTL Summary:

Cabinet Decision No. 39 of 2019, Article 8, sets specific limits on deductible social and charitable expenses. Entertainment, hospitality, and gift expenses are capped at 2% of net income or 500,000 riyals, whichever is higher, with a strict 500,000 riyal limit for foreign-incurred costs. Donations and grants to licensed non-profit entities within the state are deductible up to 3% of net income. Notably, the article treats Zakat payments as donations, subject to the same conditions. These caps ensure that discretionary spending is regulated for tax purposes.

Document Type: ERS - Executive Regulations
Law: Income Tax Law 24 of 2018
Decision Number: executive-regulations-39-article-8
Year: 2019
Country: 🇶🇦 Qatar
Official Name: Article 8
Last updated at: 2026-02-23 12:13:40 UTC

SECTION 2 - TAX CALCULATION

Chapter 1 - Taxable Income

Article 8

  1. Subject to the deduction conditions stipulated in Article 5(3) of these Regulations, the total expenses spent on entertainment, hospitality, restaurant meals, holidays, club memberships, and client gifts, as stipulated in Article 8(5) of the Law, are deductible up to 2% of the net income before making this deduction for the same accounting period or 500,000 riyals, whichever is higher. In all cases, expenses incurred outside the state for these purposes are deductible up to a limit of 500,000 riyals.

  2. The total of donations, grants, subsidies, and subscriptions to charitable activities or paid within the state to any licensed non-profit entity in the state is deductible, provided it does not exceed 3% of the net income before making this deduction. Zakat amounts paid by the taxpayer are treated as donations and are deductible within the same limits and conditions.

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