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Mon 4 Nov 2019 12:15 PM

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No change to fees on expats and dependents in Saudi Arabia

Beginning in July 2017, the Saudi government began charging a fee of SAR 100 per dependent, which rose to SAR 200 and SAR 300 per dependent in July 2018 and 2019 respectively

No change to fees on expats and dependents in Saudi Arabia
Saudi Finance Minister Mohammed al-Jadaan

There will no cancellation of fees on expatriates and their dependents in Saudi Arabia, according to the Ministry of Finance.

Beginning in July 2017, the Saudi government began charging a fee of SAR 100 per dependent, which rose to SAR 200 and SAR 300 per dependent in July 2018 and 2019 respectively. The fee will rise to AED 400 from July 1, 2020.

In a statement, the Ministry said it would continue a number of initiatives aimed at diversifying sources of revenue, such as the fees on expats and their dependents and the implementation of a selective tax on sweetened beverages that is scheduled to begin in December.

According to a story in Saudi Gazette, the ministry expects revenue of SAR 833 billion in 2020, down from the SAR 917 billion projected in 2019.

A previous statement from the ministry noted that from January 1, companies with a majority or equal number of Saudi and expat employees must pay SAR 500 each month for each foreign worker, while companies in which Saudis are a minority must pay SAR 600 each other.

In 2020, the fees will rise to SAR 700 and 800, respectively.

The newspaper noted that Minister of Finance Mohammed Al-Jadaan said that Saudi Arabia’s 2020 budget will continue to implement programmes and initiatives to help bolster the private sector and its role within the larger economy.

There are currently 22 government initiatives operating that benefit the private sector, including cash subsidies and financing guarantees by a number of different government entities.