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Mon 9 Jan 2017 02:20 PM

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Expats in Saudi to pay fee for each dependent

Gulf kingdom said to hike fee by 2020 along with expat worker tax payable by private sector

Expats in Saudi to pay fee for each dependent
(Bloomberg)

New expats in Saudi Arabia and those renewing their residency permits will have to pay a fee for each of their dependents from this year, it was reported on Monday.

From July 1, expats will be hit with a SR100 ($26) annual fee per dependent, payable in advance at the time of visa issuance or on renewing their ‘iqamas’ (residency permits), according to Saudi Gazette.

Sources told the newspaper the fee would increase in 12 months’ time, to SR200 ($53) per dependent from July 2018, SR300 ($79) from July 2019, and SR400 ($106) from July 2020.

It comes as the kingdom faces ongoing pressure to plug its fiscal deficit and boost state revenues amid low oil prices.

The sources reportedly said the dependency fees will go to the state treasury, along with the current SR200 per foreign worker payable by private sector companies in Saudi Arabia.

From January 2018, the levy will be doubled to SR400 a month per expat worker, the newspaper reported. Then, in 2019, the fee will be hiked to SR600 ($159), and to SR800 ($213) in 2020.