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Saudi Arabia Expat Tax Update 2023

The secretary general of the Financial Committee at the Court has clarified that there are no current plans to tax payments made by migrant workers in Saudi Arabia, though it has been discussed. Previously, a Shoura Council member had proposed a gradually decreasing tax of 6-2% on expat remittances over 5 years. While remittances from Saudi have tripled since 2004 to $36 billion in 2013, there are considerations around exempting citizens from proposed fees on expat dependents under discussion as part of the 2017 budget. The dependents fees are estimated to generate SR2.674 billion annually if implemented.

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153 views3 pages

Saudi Arabia Expat Tax Update 2023

The secretary general of the Financial Committee at the Court has clarified that there are no current plans to tax payments made by migrant workers in Saudi Arabia, though it has been discussed. Previously, a Shoura Council member had proposed a gradually decreasing tax of 6-2% on expat remittances over 5 years. While remittances from Saudi have tripled since 2004 to $36 billion in 2013, there are considerations around exempting citizens from proposed fees on expat dependents under discussion as part of the 2017 budget. The dependents fees are estimated to generate SR2.674 billion annually if implemented.

Uploaded by

KTSivakumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

EXPAT GUIDE, SAUDI ARABIA

No Tax Yet on Saudi Expat


RemittancesBut Heres What
The Government is Planning
Written by Expat Vine on January 19, 2017

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The secretary general of the Financial Committee at the Court has clarified that there are no plans to
tax the payments that are made by migrant workers. Mohammed Al-Tuwaijri was quoted by the Al-
Madina Arabic daily making these remarks.

There have been ongoing discussions at the Shoura Council on plans to introduce 2-6% tax on the
remittances made by expatriates. Husam Al-Angari, who is is a former member of the Shoura Council
has presented the proposal to impose a 6% tax on all migrant workers on their first year in Saudi. In
the proposal, he said tax payments would gradually reduce and stop at 2% in the 5 th year of the
expats residency in Saudi.

According to Al Angari, the remittances that were made by expat workers had tripled since 2004 from
SR 57 billion to SR135 billion in 2013, which is equivalent to $36 billion. According to the data
gathered from the World Bank, Saudi Arabia records the second largest remittances in the world,
after the United States of $37 billion in 2015.

The initial discussion about taxes in KSA started in June, which is the same time that UAE was
contemplating introducing taxes on migrant workers remittances.

In the meantime, Minister of Finance Mohammed Al-Jadaan has said there will be more clarification
on the exemption of the citizens from the expat dependents fees.

There are a number of considerations that will be factored in determining id the nationals should be
exempted from these fees. In responding to a question on exempting the Syrians, Yemenis and
Burmese from the expat dependent fees, he said political, social and security issues will be
considered.

In the 2017 budget, there is a provision to level these fees on each dependents of an expat worker,
irrespective of their country of origin.

If all goes according to plan, the expat dependents fees will rake in approximately SR 2.674 billion as
revenue to the government, within the first year.

It is estimates that there are about 11,660,998 expats that are living with their dependents in the
Saudi. The data further reveals that the expat dependents that are under the age of 19 years, as of
2016 were approximately, 2,228,525 and with the proposed fees, that should bring in about SR
222,852, 500 per month.
The proposed expat dependents fees from 2017 will be SR 100, monthly, for every dependent. In
2018, the fees will increase to SR 300 and this will increase annually to SR 800, per month for every
dependent by 2020.

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