The Cabinet of Saudi Arabia approved the states general budget for 2017. Saudi Budget 2017 brought many changes from 2016.
Saudi Budget 2017 – Key Facts
No Income Tax for Expats & Citizens, Minimal Fees will be imposed on expatriates or foreigners gradually up to 2020.
Two kind of Fees:
1) No. Of Family members an Expatriate have in Saudi Arabia (KSA)
Expatriate to pay SR 100 /- as tax on each dependent or sponsored person. So, if you have 4 dependants you will have to pay SR (Saudi Riyals) 400 /-
2) Imposed on Companies that employs expatriates
If a company have more Expatriates compared than Saudi’s then the company has to pay SR 400 /- on each Employee.
SR 300 monthly on each employee of the company, if Expatriates are less then Saudi’s and SR 200 tax on every person it sponsors.
Going forward these taxes will be revised (increased till the year 2020) to raise an estimate revenue of 65 Billion Saudi Riyals till the year 2020
Saudi government plans to phase out its costly subsidies on energy, though low income citizens will receive ‘direct cash support’ to help them manage
The National Center for Privatisation will determine in 2017 the possibility of privatisation in various sector including public utilities, sports, health, education, transport and municipal services
In 2017, Saudi Arabia plans to diversify its debt sales over the next 4 years, both domestic and international to include sukuk. It will also seek to sell instruments denominated in different currencies
Public – Private:
17 Government Agencies have identified 85 projects which could be suitable for co-operation between public & private sectors
Balanced Budget for 2017:
Saudi Arabia re-iterated its goals to eliminate its budget deficit of 2020
Saudi Arabia Government confirmed the introduction of 5% VAT (Value added Tax) from 2018.
More details of the Saudi Arabia Budget for 2017 can be viewed below: