Saudi set to charge monthly 'expat levy'

Saudi Arabia is set to introduce an 'expat levy', according to reports.

The monthly levy for an expatriate in Saudi Arabia will be 100 riyals from July 1. It is not yet clear whether the levy will be charged on all members of an expatriate family.

The levy will be 200 Saudi riyals from July 2018, 300 riyals from July 2019 and 400 riyals from July 2020, say reports.

Many companies are planning to deduct the levy from their employees' salaries.

The move aims to ensure that more Saudi nationals get jobs in comparison to their expat counterparts.

Also read: 100% tax on cigarettes, energy drinks in Saudi from June 10

As per the new norms, if the company employs more foreigners than locals, it has to pay 400 Saudi riyals monthly for each expatriate. It will increase to 600 riyals from 2019 and 800 riyals from 2020.

However, if the number of expatriates is less than locals, the levy will be lower by 100 riyals.

Khaleej Times on December 24, 2016 reported that Saudi Arabia was set to introduce an 'expat levy' in 2017.

Information about the new law was confirmed during the budget announcement.

The law only applies to firms who hire more expats compared to Saudi nationals.

Fee for the dependents of expat workers are also slated to take effect by July 2017 so as not to shock families who currently have children enrolled in schools around the region. The fee for dependents is 300 Saudi riyals.

However, the new fee will not affect domestic workers such as drivers and cleaners, the report says.

Source: Khaleej Times