Saudi Arabia’s new expat fees: What will it cost?

JEDDAH: 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 to be phased in by 2020.
Companies currently pay a levy of SR200 per month per expat employee, but only for expat employees that exceed the number of Saudi employees. 
But that will be gradually increased from next year, the government’s “Fiscal Balance Program – Balanced Budget 2020” document shows. 
From next year, the levy on expat workers will be gradually revised upwards, providing an additional impetus for employers to hire more Saudis. 
For companies in which expats do not exceed the number of Saudi or GCC employees, the fee will no longer be waived, but will be charged at a discounted rate. 
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.

• “There are two kinds of fees, the first is according to the number of family members an expat has in return for utilities used… this minimal amount will increase gradually every year,” the minister said in response to a question from Arab News.

• “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.