Expat tax comes into effect in Saudi on July 1, Indians worried

Migrant rights activist Bheem Reddy Mandha added that people had already sent their families back in the past four months.

By: Express Web Desk | New Delhi | Published:June 21, 2017 11:57 am
saudi arabia, saudi expatriates, expatriate levy, expatriate tax, world news, indian express news (Source: Google Maps)

Come July 1, Saudi Arabia is set to introduce a monthly expatriate levy on the dependants of expatriates in the kingdom. Following the announcement, many Indians employed in Saudi are planning to send their dependents back to the country, reported Times of India.

The monthly tax for an expatriate in Saudi Arabia is set to be at 100 riyals, which is approximately Rs 1,700, per month for each dependant. The move is set to hit the crucial Indian expatriate community in the Kingdom. Currently, companies that have more foreigners than locals on their payroll spend 200 riyals every month for every expatriate, reported Gulf News.

“Some families I know have made plans to return to Hyderabad as they feel they cannot afford to stay there any longer,” a Dammam-based computer professional Mohd Taher was quoted as saying by TOI. Migrant rights activist Bheem Reddy Mandha added people had already sent their families back in the past four months. “The men have become forced bachelors,” he added. The tax is reportedly set to go up by 100 riyals per dependent every year till 2020.

The move is part of cost-cutting, financial issues and a drive to employ more Saudis in the face of oil slump.

Though there are a few companies that are thinking of compensating their employees for the dependent fee, expatriates are mostly required to pay it themselves, reported TOI. While speaking on the effect of the tax on Indian expatriates, a senior official in the Ministry of External Affairs (MEA) said: “It will affect all expats.”

 

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  1. A
    Arsalan Siddique
    Jun 22, 2017 at 9:20 pm
    Acha hai tax lagna chahiye good step 👍
    Reply
    1. R
      Rajdeep Anand
      Jun 21, 2017 at 6:39 pm
      India should also impose Expat Tax on Saudi Arabian expats in India.
      Reply
      1. A
        ashok s
        Jun 21, 2017 at 4:34 pm
        Nano effects
        Reply
        1. R
          Ravi
          Jun 21, 2017 at 4:24 pm
          Nxt u jazia tax
          Reply
          1. R
            Ravi
            Jun 21, 2017 at 4:25 pm
            Nxt up
            Reply
          2. R
            Rattihallirao
            Jun 21, 2017 at 2:54 pm
            The best waiy for Indians working abroad is to come back to India, become farmers, do yoga and forget your technical credentials.
            Reply
            1. V
              Vish
              Jun 21, 2017 at 9:00 pm
              Yeah, then such returnees get a right to agitate, do shavasana, become beggars demanding govt dole and aid at the prompt of lousy politicians.
              Reply
            2. R
              Raju
              Jun 21, 2017 at 1:24 pm
              The move is part of cost-cutting, financial issues and a drive to employ more Saudis in the face of oil slump. expatriates, those who came with great expectations from third world counties, these countries given chance to work and make life their families and their dependents back to their counties , we are so grateful Gulf countries , people and their rules.
              Reply
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