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Saudi Arabia — Orbitax Country Chapters
6.4. Reserves and Provisions

Provisions for doubtful debts, termination benefits and other similar items are not deductible. However, uncollectible debts on sales previously recorded as income are deductible. Specific write-offs and actual employment termination benefit payments that comply with Saudi Arabian labor laws are deductible. Provisions for doubtful debts are allowed as deductible expenses for banks if they are confirmed by the Saudi Arabian Monetary Agency.