The Saudi Council of Ministers approved new fees as part of the Fiscal Balance Program adopted in December 2016. The Saudi Government introduced an expatriate dependents levy effective from 1 July 2017 and an expatriate employees levy effective from 1 January 2018. All foreign nationals (estimate of 8,341,564 males & 3,843,720 females with a total of 12,185,284 expats) in Saudi Arabia will have to pay a monthly expat levy and this will increase every year until 2020.
Expat Levy – fees for expatriate dependents
The monthly expat levy will be SAR 100 per dependent effective as of 1 July 2017. The amount will be raised gradually every year until 2020. It will double to SAR 200 in 2018 a year after, then increase to SAR 300 in July 2019 and SAR 400 in July 2020.
The dependent fee will be calculated monthly, and is paid to the Passport (the issuing office of new and renewal Iqama visas) annually along with the foreign national’s new residence visa (Iqama) or renewal application.
Table 1: Calculation fees for expatriate dependents
Expat Levy – fees for expatriate employees
Saudi Arabia will implement a new levy from companies where the number of expatriate employees exceeds the Saudi employee’s effective as of 1 January 2018.
The fees will be imposed on companies with more than 50% of Saudi employees starting from 1 January 2018 in all sectors. The amount will be raised gradually every year until 2020. The fee will be at the rate of SAR 300 per month per expatriate employee. It will be SAR 500 per month in 2019 a year after, then increase to SAR 700 per month in January 2020.
If a company has less than 50% of Saudi employees, the fee will be at the rate of SAR 400 per month per expatriate employee. It will be SAR 600 per month in 2019 a year after, then increase to SAR 800 per month in January 2020.
Table 2: Calculation fees for expatriate employees
Disclaimer: The views set out in this article do not constitute legal advice and readers are urged to seek specific advice in relation to any particular issues from this article.