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Showing posts with label Expat tax. Show all posts
Showing posts with label Expat tax. Show all posts

Monday, July 03, 2017

Saudi Expat Dependent's Fee Must Be Paid First Before Iqama Renewal Or Exit-Reentry Visa

July 1, 2017 - Saudi Arabia has started to collect the much-talked about Dependent's Fee from the huge number of expatriates in the kingdom. Announced during last year's budget proposal, the Dependent's Levy is a part of the kingdom's plan to diversify its source of income which comes mainly from petroleum products as the price of oil remains low. As part of the government’s Fiscal Balance Program, expatriate workers are expected to pay SR1,200 for one year for each of his dependents in the kingdom.  Up until Sunday morning, there was no clear indication as to the implementation of the proposal except that the fees will be collected at the time of the iqama renewal - the residency document for expatriates.  In the later hours of Sunday however, expats who wanted to pay the exit-reentry visa fee for their family members were prompted by the online payment system to first clear the dependent fee for the remaining months of the validity of their iqamas (residence permits). Online transactions started displaying complete and accurately calculated amount of dependent fee based on the validity of the expat's iqama and his number of dependents.  This observation was seen in online transactions of Saudi-American Bank as well as other banks in the kingdom. However, not all banks are currently reflecting the fees in the payment options, including Al Rajhi Bank. A video is also shown below (in English and Indian language).  Today, it emerged clearly that the payment of dependent fee is not only directly linked with the renewal of iqama but also the issuance of exit-reentry visa, whichever comes first.  The exit-reentry process can be done against single individual dependent by paying the fee up to the date of the validity of iqama. However, for the renewal of iqama it is mandatory to settle the amount for all dependents. What remians unclear now is if the fee is limited to the commercial sector and if expatriates working in the government sector are included as well.  All dependents are included in the regulation, including children, wife, as well as maids and drivers working directly for a sponsor. Monthly fee for each dependent costs SR100 this year. It will double next year, then triple in 2019. In 2020, the fee for each dependent will be SR400 per month.  Almost all expats are reacting negatively to the policy of taxing only expatriates. Some have already sent dependents on final exit as they themselves started seeking better opportunities somewhere else.  While most residents understand that Saudi Arabia needs to give more opportunities to its nationals and tackle unemployment, they say the move is counter-productive, as expats have also been a contributing factor to the local economy.  Okaz Arabic daily estimates that the dependent fee will generate SR1 billion in revenue by the end of the year and SR65 billion by 2020. However, it is unclear how much the move will take away from the economy if expats continue to send their families back home - including most of their salaries.  UPDATE: A recent screenshot of AlRiyadh Newspaper is going viral all over the internet. It says that the King has cancelled all visa related fees in the kingdom. However, AlRiyadh themselves tweeted that the post was not theirs and therefore it is fake news. See the image below.




July 1, 2017 - Saudi Arabia has started to collect the much-talked about Dependent's Fee from the huge number of expatriates in the kingdom. Announced during last year's budget proposal, the Dependent's Levy is a part of the kingdom's plan to diversify its source of income which comes mainly from petroleum products as the price of oil remains low. As part of the government’s Fiscal Balance Program, expatriate workers are expected to pay SR1,200 for one year for each of his dependents in the kingdom.

Up until Sunday morning, there was no clear indication as to the implementation of the proposal except that the fees will be collected at the time of the iqama renewal - the residency document for expatriates.


In the later hours of Sunday however, expats who wanted to pay the exit-reentry visa fee for their family members were prompted by the online payment system to first clear the dependent fee for the remaining months of the validity of their iqamas (residence permits). Online transactions started displaying complete and accurately calculated amount of dependent fee based on the validity of the expat's iqama and his number of dependents.

July 1, 2017 - Saudi Arabia has started to collect the much-talked about Dependent's Fee from the huge number of expatriates in the kingdom. Announced during last year's budget proposal, the Dependent's Levy is a part of the kingdom's plan to diversify its source of income which comes mainly from petroleum products as the price of oil remains low. As part of the government’s Fiscal Balance Program, expatriate workers are expected to pay SR1,200 for one year for each of his dependents in the kingdom.  Up until Sunday morning, there was no clear indication as to the implementation of the proposal except that the fees will be collected at the time of the iqama renewal - the residency document for expatriates.  In the later hours of Sunday however, expats who wanted to pay the exit-reentry visa fee for their family members were prompted by the online payment system to first clear the dependent fee for the remaining months of the validity of their iqamas (residence permits). Online transactions started displaying complete and accurately calculated amount of dependent fee based on the validity of the expat's iqama and his number of dependents.  This observation was seen in online transactions of Saudi-American Bank as well as other banks in the kingdom. However, not all banks are currently reflecting the fees in the payment options, including Al Rajhi Bank. A video is also shown below (in English and Indian language).  Today, it emerged clearly that the payment of dependent fee is not only directly linked with the renewal of iqama but also the issuance of exit-reentry visa, whichever comes first.  The exit-reentry process can be done against single individual dependent by paying the fee up to the date of the validity of iqama. However, for the renewal of iqama it is mandatory to settle the amount for all dependents. What remians unclear now is if the fee is limited to the commercial sector and if expatriates working in the government sector are included as well.  All dependents are included in the regulation, including children, wife, as well as maids and drivers working directly for a sponsor. Monthly fee for each dependent costs SR100 this year. It will double next year, then triple in 2019. In 2020, the fee for each dependent will be SR400 per month.  Almost all expats are reacting negatively to the policy of taxing only expatriates. Some have already sent dependents on final exit as they themselves started seeking better opportunities somewhere else.  While most residents understand that Saudi Arabia needs to give more opportunities to its nationals and tackle unemployment, they say the move is counter-productive, as expats have also been a contributing factor to the local economy.  Okaz Arabic daily estimates that the dependent fee will generate SR1 billion in revenue by the end of the year and SR65 billion by 2020. However, it is unclear how much the move will take away from the economy if expats continue to send their families back home - including most of their salaries.  UPDATE: A recent screenshot of AlRiyadh Newspaper is going viral all over the internet. It says that the King has cancelled all visa related fees in the kingdom. However, AlRiyadh themselves tweeted that the post was not theirs and therefore it is fake news. See the image below.
Screenshot of SAMBA Transactions for Alien Control Services under MOI Payments

This observation was seen in online transactions of Saudi-American Bank, NCB and other banks in the kingdom. However, not all banks are currently reflecting the fees in the payment options, including Al Rajhi Bank. A video is also shown below (in English and Indian language).

July 1, 2017 - Saudi Arabia has started to collect the much-talked about Dependent's Fee from the huge number of expatriates in the kingdom. Announced during last year's budget proposal, the Dependent's Levy is a part of the kingdom's plan to diversify its source of income which comes mainly from petroleum products as the price of oil remains low. As part of the government’s Fiscal Balance Program, expatriate workers are expected to pay SR1,200 for one year for each of his dependents in the kingdom.  Up until Sunday morning, there was no clear indication as to the implementation of the proposal except that the fees will be collected at the time of the iqama renewal - the residency document for expatriates.  In the later hours of Sunday however, expats who wanted to pay the exit-reentry visa fee for their family members were prompted by the online payment system to first clear the dependent fee for the remaining months of the validity of their iqamas (residence permits). Online transactions started displaying complete and accurately calculated amount of dependent fee based on the validity of the expat's iqama and his number of dependents.  This observation was seen in online transactions of Saudi-American Bank as well as other banks in the kingdom. However, not all banks are currently reflecting the fees in the payment options, including Al Rajhi Bank. A video is also shown below (in English and Indian language).  Today, it emerged clearly that the payment of dependent fee is not only directly linked with the renewal of iqama but also the issuance of exit-reentry visa, whichever comes first.  The exit-reentry process can be done against single individual dependent by paying the fee up to the date of the validity of iqama. However, for the renewal of iqama it is mandatory to settle the amount for all dependents. What remians unclear now is if the fee is limited to the commercial sector and if expatriates working in the government sector are included as well.  All dependents are included in the regulation, including children, wife, as well as maids and drivers working directly for a sponsor. Monthly fee for each dependent costs SR100 this year. It will double next year, then triple in 2019. In 2020, the fee for each dependent will be SR400 per month.  Almost all expats are reacting negatively to the policy of taxing only expatriates. Some have already sent dependents on final exit as they themselves started seeking better opportunities somewhere else.  While most residents understand that Saudi Arabia needs to give more opportunities to its nationals and tackle unemployment, they say the move is counter-productive, as expats have also been a contributing factor to the local economy.  Okaz Arabic daily estimates that the dependent fee will generate SR1 billion in revenue by the end of the year and SR65 billion by 2020. However, it is unclear how much the move will take away from the economy if expats continue to send their families back home - including most of their salaries.  UPDATE: A recent screenshot of AlRiyadh Newspaper is going viral all over the internet. It says that the King has cancelled all visa related fees in the kingdom. However, AlRiyadh themselves tweeted that the post was not theirs and therefore it is fake news. See the image below.
Screenshot of Al Rajhi Bank Online Transactions for Expatriate Services under MOI Payments


Today, it emerged clearly that the payment of dependent fee is not only directly linked with the renewal of iqama but also the issuance of exit-reentry visa, whichever comes first.

The exit-reentry process can be done against single individual dependent by paying the fee up to the date of the validity of iqama. However, for the renewal of iqama it is mandatory to settle the amount for all dependents. What remians unclear now is if the fee is limited to the commercial sector and if expatriates working in the government sector are included as well.

All dependents are included in the regulation, including children, wife, as well as maids and drivers working directly for a sponsor. Monthly fee for each dependent costs SR100 this year. It will double next year, then triple in 2019. In 2020, the fee for each dependent will be SR400 per month.




Almost all expats are reacting negatively to the policy of taxing only expatriates. Some have already sent dependents on final exit as they themselves started seeking better opportunities somewhere else.

While most residents understand that Saudi Arabia needs to give more opportunities to its nationals and tackle unemployment, they say the move is counter-productive, as expats have also been a contributing factor to the local economy.


Okaz Arabic daily estimates that the dependent fee will generate SR1 billion in revenue by the end of the year and SR65 billion by 2020. However, it is unclear how much the move will take away from the economy if expats continue to send their families back home - including most of their salaries.

UPDATE: A recent screenshot of AlRiyadh Newspaper is going viral all over the internet. It says that the King has cancelled all visa related fees in the kingdom. However, AlRiyadh themselves tweeted that the post was not theirs and therefore it is fake news. See the image below.
July 1, 2017 - Saudi Arabia has started to collect the much-talked about Dependent's Fee from the huge number of expatriates in the kingdom. Announced during last year's budget proposal, the Dependent's Levy is a part of the kingdom's plan to diversify its source of income which comes mainly from petroleum products as the price of oil remains low. As part of the government’s Fiscal Balance Program, expatriate workers are expected to pay SR1,200 for one year for each of his dependents in the kingdom.  Up until Sunday morning, there was no clear indication as to the implementation of the proposal except that the fees will be collected at the time of the iqama renewal - the residency document for expatriates.  In the later hours of Sunday however, expats who wanted to pay the exit-reentry visa fee for their family members were prompted by the online payment system to first clear the dependent fee for the remaining months of the validity of their iqamas (residence permits). Online transactions started displaying complete and accurately calculated amount of dependent fee based on the validity of the expat's iqama and his number of dependents.  This observation was seen in online transactions of Saudi-American Bank as well as other banks in the kingdom. However, not all banks are currently reflecting the fees in the payment options, including Al Rajhi Bank. A video is also shown below (in English and Indian language).  Today, it emerged clearly that the payment of dependent fee is not only directly linked with the renewal of iqama but also the issuance of exit-reentry visa, whichever comes first.  The exit-reentry process can be done against single individual dependent by paying the fee up to the date of the validity of iqama. However, for the renewal of iqama it is mandatory to settle the amount for all dependents. What remians unclear now is if the fee is limited to the commercial sector and if expatriates working in the government sector are included as well.  All dependents are included in the regulation, including children, wife, as well as maids and drivers working directly for a sponsor. Monthly fee for each dependent costs SR100 this year. It will double next year, then triple in 2019. In 2020, the fee for each dependent will be SR400 per month.  Almost all expats are reacting negatively to the policy of taxing only expatriates. Some have already sent dependents on final exit as they themselves started seeking better opportunities somewhere else.  While most residents understand that Saudi Arabia needs to give more opportunities to its nationals and tackle unemployment, they say the move is counter-productive, as expats have also been a contributing factor to the local economy.  Okaz Arabic daily estimates that the dependent fee will generate SR1 billion in revenue by the end of the year and SR65 billion by 2020. However, it is unclear how much the move will take away from the economy if expats continue to send their families back home - including most of their salaries.  UPDATE: A recent screenshot of AlRiyadh Newspaper is going viral all over the internet. It says that the King has cancelled all visa related fees in the kingdom. However, AlRiyadh themselves tweeted that the post was not theirs and therefore it is fake news. See the image below.



source: Saudi Gazette, Arab News


©2017 THOUGHTSKOTO

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Saturday, January 21, 2017

DEBATE ON 6% TAX ON EXPAT REMITTANCES IN SAUDI ARABIA, SET TO BEGIN


The debate on the proposed 6 percent tax on the remittances of expatriate in the Kingdom of Saudi Arabia is set to begin this week.  According to Saudi Gazette, The Consultative Assembly of Saudi Arabia or The Shura Council will study the said proposal with an aim to help lessen the huge budget deficit of the Kingdom.   The program targets to increase the country’s non-oil revenue collection.  The proposal was made by Hussam Al-Anqari, former chief of the General Auditing Bureau (GAB).




The debate on the proposed 6 percent tax on the remittances of expatriate in the Kingdom of Saudi Arabia is set to begin this week.

According to Saudi Gazette, The Consultative Assembly of Saudi Arabia or The Shura Council will study the said proposal with an aim to help lessen the huge budget deficit of the Kingdom.


The program targets to increase the country’s non-oil revenue collection.

The proposal was made by Hussam Al-Anqari, former chief of the General Auditing Bureau (GAB).




It has been approved by the Shoura’s financial committee and will be put before the general assembly for discussion.

What's in the proposal?

1. A 6% tax will be charged on the amount of remittances of expats in the first year. But gradually the fees will be reduced.


2. The collected funds from expat's tax will be deposited at the Saudi Arabian Monetary Authority (SAMA).

3. There is also a recommendation to put ceiling on cash an expatriate could keep or carry with him when he makes a final exit in the Kingdom.

Anqari said, this proposal is meant to encourage expatriates to spend money in the Kingdom to help the economy.

Anqari added that this will encourage foreign nationals to invest more in the Kingdom.


According to Saudi Central Bank data, roughly 10 million foreign workers transferred $9.4 billion to their home countries in the third quarter of 2016.

These expat remittances have gone up from SR57 billion in 2004 to SR135 billion in 2013.


READ MORE:

NEW FEES FOR OFWS AND OTHER EXPATRIATES IN SAUDI ARABIA

IT'S TIME TO REPLACE EXPAT WORKERS WITH SAUDIS - SAUDI GAZETTE

SR400,000 FINE FOR ANIMAL CRUELTY IN SAUDI ARABIA

PHILIPPINE EMBASSY IN SAUDI TO ALL OFWS IN THE KINGDOM: LIST OF PENALTY FOR EXPAT VIOLATORS IN SAUDI

RUN AWAY WORKERS WILL NEVER BE ALLOWED TO RETURN TO SAUDI











On the other hand, expatriate workers in Saudi Arabia express concern regarding the burden of the proposed 6 percent tax.

Some Filipinos in the Kingdom said this will have a big impact on their remittances to the Philippines, especially for those who are earning just enough.




Indian workers are also worried about the result of the discussion.

Indian expatriate comprises the 20 percent of the total workforce in private sector in Saudi Arabia.


SEE ALSO:

How To Secure Police Clearance In Saudi Arabia (Before or After Your Exit)

126 RECRUITMENT AGENCIES IN SAUDI, BANNED FROM RECRUITING DH;478 EXPAT MEDICAL STAFF, LOSES JOB IN KSA

“STAY HERE, SAUDI ARABIA NEEDS FILIPINOS.” -LABOR MINISTER MUFREJ AL HAQABANI

WARNING: IN SAUDI ARABIA, BE WARY OF BEING A DEBT GUARANTOR, YOU COULD END UP IN JAIL

Top 10 Reminders About Photography If You are In KSA or UAE









©2017 THOUGHTSKOTO