Saudi To Hike Taxes On Expat Workers

By Fiona Moore, for Expatbriefing.com 22 June, 2017

Saudi Arabia is to impose further taxes on expatriate employees from July 1.

Under the current regime, private sector firms that employ more foreign than local workers pay a SAR200 (USD53) per month levy on each non-Saudi employee.

Under the tax, which will come into force in July, an additional monthly tax of SAR100 (collected annually upon submission of visa requests or residence visa renewal requests) will be imposed on expatriate employees and their dependents, increasing to SAR200 next year, and reaching SAR400 by 2020.

Additionally, the current waiver of the existing levy on expat employees where firms have hired more Saudi employees than non-locals will be replaced instead with a discounted rate.

There are concerns that the tax, imposed as part of the Fiscal Balance Programme 2020, will increase the costs of doing business in the Kingdom, or that the costs will be passed on to the employees themselves.

Tags: Expatriates | Tax | Business | Saudi Arabia | Employees | Expats |

 





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