This Rule defines the tax treatment for grants and donations, specified as uncompensated cash or in-kind contributions. Under Article 3, donations to governmental institutions in Kuwait are fully deductible. Donations to licensed private Kuwaiti bodies are deductible up to 2.5% of the incorporated body's net income before this deduction. The Rule requires all donations to be genuine and supported by documentation. Contributions to natural individuals are not deductible. Special cases must be reviewed separately with the Tax Department, and the text provides illustrative examples for calculation.