We’ve been hearing about Tax exemption for the workers of contractors who are working towards mulitple projecty which are yet to be completed or may be completed after 2018.
The exemption was approved after the Council of Saudi Chambers access Kings Salman’s son Crown prince Muhammad Bin Salman. COC requested the crown prince to review the Expat levy, because this will disrupt the current projections to complete the projects within given budgets as this will cause delay in salaries of workers. This will also delay the projects that were included in Vision 2030, there are 30 projects in Vision 2030 having costs of billion of riyals.
Public sector projects usually take 3 to 5 years to complete. Companies plan their budget per project and the budget is usually meticulous and accurate from calculating the expenses of the materials to calculating the salaries of the workers.
Any additional expenses could be detrimental to the sustainability of the project, the council said.
The Council of Saudi Chambers also requested to allow hiring of expatriate workers in fields where qualified Saudis are not available. Such fields include cleaning works, sewer work and others.
The CEDA forwarded the proposal to the Cabinet and urged a reply to the proposal within 60 days.
The Cabinet held a meeting with its Commission of Experts and the latter approved the proposal after studying its feasibility.
Expat Dependent Tax:
The month of July 2017 a starting point of this new tax from this month Every Saudi Expat living with his family required to pay fee against every dependent under his sponsorship. The includes any relative or non-relative. In 2017 the levy starts from 100 (Saudi Riyals) SAR while it increased after every 12 months until SAR 400 in 2020. Even the expats tries to leave kingdom with paying dues he/she can’t do that. This means it is strict requirement no one can go out without paying the fee.