04 Jul 2017 | 01:22 PM UTC
Saudi Arabia: New tax for expatriates
New tax on expatriates’ dependents in effect July 1; expatriate tax for companies to increase in 2018
Event
A new tax on expatriates' dependents living in Saudi Arabia went into effect on July 1. The Saudi General Directorate of Passports and Expatriates Affairs announced the fees apply to expatriates of all nationalities, with no exceptions. Residency permits and residency identities will not be renewed unless all fees are paid.
For 2017, the fee for each dependent is SAR 100 per month (approximately USD 27); it will increase to SAR 200 per month in 2018, SAR 300 per month in 2019, and SAR 400 per month in 2020.
Furthermore, beginning in 2018 companies will have to pay between SAR 300-800 per month per expatriate employee, depending on if their company is staffed by a majority of expatriates or not; this tax will increase each year. Companies currently pay a monthly fee of SAR 200 per expatriate employee, which is waived if there is a majority of Saudi workers in the company. The fee will no longer be waived for these companies in the coming years.
Context
The new tax aims to balance the Saudi budget by 2020.
Advice
Affected individuals are advised to contact their nearest Saudi embassy for more information.
