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.