Saudi Arabia has no plan for tax on expat remittances: Official

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At present Saudi Arabia has no plans to impose any taxes on remittances by expat workers, a senior official has said.

Al-Madina Arabic daily quoted Mohammed Al-Tuwaijri, secretary general of the Financial Committee at the Royal Court, as having said that the Kingdom has no plans to impose remittance tax at present.

Shoura Council discussions on tax

According to Saudi Gazette, the Shoura Council is discussing plans to impose a 2 to 6 percent tax on expat workers’ remittances. However no decision has been taken on this yet, the report suggested.

Former Shoura Council member Husam Al-Angari, who submitted the proposal, suggested a 6 percent tax in the first year of living in the Kingdom. He said the tax would then drop to 2 percent following five years of the expat’s residency in Saudi Arabia.

The Kingdom first mooted a tax on expat remittances in June. At around the same time, the UAE was also reported to be considering the imposition of such a tax.

Some nationalities to be exempted from dependent’s fee

A number of nationalities will be exempted from expat dependents’ fees which was announced on Thursday.

Minister of Finance Mohammed Al-Jadaan said that the details on the exemption of nationalities will be announced later.

Social, political and security circumstances will be taken into consideration to decide on the nationalities to be exempted from such fees, he said in response to a question about the possibility to exempt Yemenis, Burmese and Syrians from the proposed expat dependents’ fees.

According to the budget for 2017, an expat worker will have to pay SR100 for each of his dependent every month from July 2017.

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From July 2018, the fee will increase to SR200 per dependent per month and will gradually increase each year.

There are 11,660,998 expatriates and their dependents in the Kingdom, according to data. The number of expat dependents under 19 years of age in 2016 was 2,228,525.

-Published on 25 December 2016

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