By Innovation-sa on December 19, 2017 in News
Saudi Arabia’s Ministry of Finance announced on twitter that the Kingdom is all set to impose monthly levy on expats which will range between SR 300 and SR 400 in 2018 depending on the percentage of foreign employees with respect to Saudi employees in private sector companies.
It added that companies operating in private sector will have to pay levy for their employees. With the implementation of levy, the government aims to replace expatriates with Saudi employees.
Earlier in 2016, the ministry announced a levy of SR 400 in 2018 followed by SR 800 in 2020 for private companies which hire more foreigners than locals.
However, in private companies with greater percentage of local employees than foreigners, expat levy will be limited to SR 300 in 2018 which will gradually rise to SR 700 in 2020.
Recently, Saudi Arabia has been involved in the implementation of expat levy, dependent fee and possible introduction of VAT in 2018, all as a measure to diversify its economy from the oil sector.