Saudia Plan to Levy Fee on Expatriate Workers And Their Dependents upto 300 SR Per Dependent

"They want us to quit," says R Ali Shah, an expatriate since eleven years working for a IT consultant firm in Medina. Shah, a Computer Science Graduate from Pakistan moved to Saudi Arabia  for better prospects immediately after graduating. He was happy until recent economic crises which affected the Kingdom badly. He lost his job with the consultants in Medina. He soon found work at a Chinese firm having a construction project near Makkah but the work is not fulfilling in terms of money and working conditions. Shah is disappointed on the new Fee levied upon by Saudi Government on Expatriate workers and their dependents.

According to Arab News, Saudi Arabia plans to introduce an “expat levy” from 2017, it was confirmed during Thursday’s budget announcement, with charges of up to SR800 per worker and upto 300$ per dependent to be phased in by 2020.

A fee on dependents of expatriate workers will also be levied. It will commence in July of 2017, in order to minimize impact on families with children enrolled in school.

Currently, neither Saudi nationals nor foreign laborers pay income taxes, and this policy will remain in place, the government says.

Here is what the new expat levy will cost:

In 2017

• Dependents of expats will each incur a monthly fee of SR100, from July onwards

In 2018

• Dependents of expats will each incur a monthly fee of SR200, from July onwards

• In companies where the number of foreign employees is equal to or lower than the number of Saudis, a monthly fee of SR300 will apply from January onwards

• In companies where the number of foreign employees exceeds the number of Saudis, a monthly fee of SR400 will apply from January onwards

In 2019

• Dependents of expats will each incur a monthly fee of SR300, from July onwards

• In companies where the number of foreign employees is equal to or lower than the number of Saudis, a monthly fee of SR500 will apply from January onwards

• In companies where the number of foreign employees exceeds the number of Saudis, a monthly fee of SR600 will apply from January onwards

In 2020

• Dependents of expats will each incur a monthly fee of SR400, from July onwards

• In companies where the number of foreign employees is equal to or lower than the number of Saudis, a monthly fee of SR700 will apply from January onwards

• In companies where the number of foreign employees exceeds the number of Saudis, a monthly fee of SR800 will apply from January onwards

No income tax

• Saudi Finance Minister Mohammed Al-Jadaan told reporters in Riyadh on Thursday that these fees do not apply to domestic helpers, such as drivers and cleaners, but only to expats working in commercial entities.

• “The second is already imposed on companies which employ expat workers; this will increase gradually as well until 2020.”

• The finance minister ruled out income taxes on Saudi nationals, foreigners or company revenues.