Saudi Arabia prepares to charge monthly expat fees in 2018

The Saudi Ministry of Finance confirmed on Saturday plans to impose a monthly tax between SAR 300 and SAR 400 for each foreign worker starting 2018 on private sector companies where expats outnumber Saudis, the ministry said on its Twitter account.

The move aims to encourage companies to replace expatriates with Saudi cadres.

The expat levy will be also increased to SAR 600 from 2019 and SAR 800 from 2020.

Saudi Arabia will impose fees on expats and their dependents as part of the government’s fiscal balance program, Argaam earlier reported.

The Small and Medium Enterprises General Authority has recently said that a SAR 7 billion plan to refund government fees to SMEs, under the private sector stimulus package, will ensure returning up to 80 percent of taxes imposed on expatriates.