Final Year to Exempt Expat Tax for Small Companies Begins


The last and third year of exempting small companies from paying the monthly expat tax started. According to the approved decision to exempt small enterprises for paying the expat levy for 3 years from April 2020 to March 2023.

Third and Final Year to Exempt Small Firms from Expat Levy Begins

As per the decision, it includes exempting labor fees from work permits of 800SR per month or 9,600SR annually to be reduced to 100SR only, which was implemented online through e-portal of the Ministry of Human Resources and Social Development.

The decision also states, workers will be exempted from fees in small companies with 9 or less workers, with the employer working full-time while raising the number of exempted workers to 4 workers when hiring another Saudi citizen.

According to a report, the number of companies with 9 or less workers is about 576,312 establishments. The aim of the Ministry’s decision was to provide further flexibility in managing the contractual relationship between the company or employer and the expat worker.

The Human Resources Ministry aims to improve the management of financial flows with companies in the private sector and allow scheduling of their financial payments.

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