Good news for Expatriates living in Saudi Arabia that Shoura Council rejected the application on Tax on Expats Remittances As more than 70% + members in the council refused to agree on levying tax on Expatriates remittances without discussion.
Members of Shoura council decided to convene and discuss it. Out of 119 members in the session only 33 members supported and 86 members rejected the proposal of Fees on Expats remittances.
Earlier, the Finance Ministry denied any plans for imposing tax on Expatriate remittance.
This is very helpful for Expatriates living in the kingdom of Saudi Arabia doesn’t have to pay taxes. However, Companies who have Expatraite or foreign workers will pay the Tax Fees starting 2018.
6% tax on remit was proposed for the first year and then it would reduce to 2% for 5 years.
For Example, if your Salary is 6000 SAR and you wanted to send 4000 SAR, you would have paid 6% of 6000 SAR i.e. 360 SAR as Tax remittance, which is now rejected.