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Immigration


22 November 2017

SAUDI ARABIA: New expat levy from 2018

From January 2018, companies in Saudi Arabia will have to pay a new monthly levy for each expat employee.

Companies where expat and Saudi workers are in equal numbers will have to pay a fee of SR300 per foreign employee per month starting January 2018. This levy will increase to SR500 per month per employee in 2019 and SR700 per month per employee in 2020.

Companies where foreign employees outnumber Saudi workers will have to pay a levy of SR400 per month per employee starting January 2018. This will increase to SR600 per month per employee in 2019 and SR800 per month per employee in 2020.

The new levy is in line with the country’s vision to diversify its sources of income as well as measures to improve the representation of Saudi nationals in the private sector.

How does this affect the client?

Companies should prepare for increases in overall operation costs due to this new fee.

 

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