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10% tax on salary for expats?
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Super Modal



Joined: 07 Oct 2012
Posts: 46
Location: Jeddah

PostPosted: Mon Oct 03, 2016 9:18 pm    Post subject: 10% tax on salary for expats? Reply with quote

Has anyone heard anything about a new tax on expats? Is it real? There are a lot of rumors flying around at my workplace.

https://www.facebook.com/permalink.php?story_fbid=527574000766253&id=497064657150521&substory_index=0

Also some articles in Gulf news are setting off alarm bells around here.

http://m.gulfnews.com/news/gulf/saudi-arabia/public-sector-loses-11-days-of-salary-after-calendar-switch-in-saudi-arabia-1.1903333

http://m.gulfnews.com/news/gulf/saudi-arabia/public-sector-loses-11-days-of-salary-after-calendar-switch-in-saudi-arabia-1.1903333

What do you think? Will this affect teachers in the public sector?
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nomad soul



Joined: 31 Jan 2010
Posts: 11454
Location: The real world

PostPosted: Mon Oct 03, 2016 9:47 pm    Post subject: Re: 10% tax on salary for expats? Reply with quote

Super Modal wrote:
Has anyone heard anything about a new tax on expats? Is it real? There are a lot of rumors flying around at my workplace.

That rumor has been around for some time. But so far, the Saudi govt hasn't moved forward with a plan to tax expat remittances (see http://www.arabnews.com/node/973966/saudi-arabia).

Super Modal wrote:
Also some articles in Gulf news are setting off alarm bells around here.

http://m.gulfnews.com/news/gulf/saudi-arabia/public-sector-loses-11-days-of-salary-after-calendar-switch-in-saudi-arabia-1.1903333

What do you think? Will this affect teachers in the public sector?

I just updated the following thread (Getting paid per the Gregorian calendar). Apparently, the public sector will use the Gregorian calendar as well effective this month. You should confirm this with your HR rep.
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Super Modal



Joined: 07 Oct 2012
Posts: 46
Location: Jeddah

PostPosted: Tue Oct 04, 2016 4:48 am    Post subject: Reply with quote

I contacted HR first, of course. They said they haven't been notified about any changes. Nothing official has been announced where I work about salary changes.
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Super Modal



Joined: 07 Oct 2012
Posts: 46
Location: Jeddah

PostPosted: Tue Oct 04, 2016 4:55 am    Post subject: Reply with quote

All the rumors started after this article in the Saudi Gazette. http://saudigazette.com.sa/saudi-arabia/king-announces-new-austerity-measures/
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bigdurian



Joined: 05 Feb 2014
Posts: 401
Location: Flashing my lights right behind you!

PostPosted: Tue Oct 04, 2016 5:28 am    Post subject: Reply with quote

Super Modal wrote:
All the rumors started after this article in the Saudi Gazette. http://saudigazette.com.sa/saudi-arabia/king-announces-new-austerity-measures/


Amusing to read the comments for that article. Not one person complaining about having less money in their pocket!
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Leno



Joined: 20 Dec 2015
Posts: 51

PostPosted: Tue Oct 04, 2016 10:53 am    Post subject: Reply with quote

some news article said
" the banks will take take 10% as tax on remittences" meaning, if an expat/a legal residence ( not someone working on visit or business visa) sends money home via money center or a bank. and
an expat cannot send more than the amount of their monthly salary or income."
Has it become law or not yet?
What if the expats carry the money or send money home in other forms? LIke buying gold or etc.

I personally do not think it would be a good idea to work in KSA any more, as I would be paying double tax ( at home and in KSA),
plus salary are going down and
housing may not be provided but small amount may be offered as housing allowance, and
in the wrost case scenario, one may have to wait months or years for their salary and no choice but to keep paying housing and daily expenses out of thir own pockets.
It is nothing to do with the Saudi law, it is about some employers being greedy, dishonest and unjust by not allowing expats to exit the country or move to a new job legally if the employers got into financial difficulty.
Someone always said on this forum " choose your master arefully" but how to do?
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nomad soul



Joined: 31 Jan 2010
Posts: 11454
Location: The real world

PostPosted: Tue Oct 04, 2016 11:35 am    Post subject: Reply with quote

Leno wrote:
" the banks will take take 10% as tax on remittences" meaning, if an expat/a legal residence ( not someone working on visit or business visa) sends money home via money center or a bank. and an expat cannot send more than the amount of their monthly salary or income."
Has it become law or not yet? What if the expats carry the money or send money home in other forms? LIke buying gold or etc.

Again, the proposed 10% taxation on remittances is in the debate stage and has not been implemented. You'll just have to cross that bridge if it goes into effect.

and Leno wrote:
I personally do not think it would be a good idea to work in KSA any more, as I would be paying double tax (at home and in KSA), plus salary are going down and housing may not be provided but small amount may be offered as housing allowance, and in the wrost case scenario, one may have to wait months or years for their salary and no choice but to keep paying housing and daily expenses out of thir own pockets.

It is nothing to do with the Saudi law, it is about some employers being greedy, dishonest and unjust by not allowing expats to exit the country or move to a new job legally if the employers got into financial difficulty.

Someone always said on this forum " choose your master arefully" but how to do?

The advice of choosing one's master carefully is mainly for job seekers who pursue opportunities via the umpteen for-profit contracting companies because their qualifications fall short for the better direct-hire positions. If you knowingly sign up with a company (or university) that's had a shady reputation... As they say, if you buy it, you own it. Welcome to the real world 2.0.

Super Modal wrote:
I contacted HR first, of course. They said they haven't been notified about any changes. Nothing official has been announced where I work about salary changes.
....

All the rumors started after this article in the Saudi Gazette. http://saudigazette.com.sa/saudi-arabia/king-announces-new-austerity-measures/

The cuts reported in the news article were related to the Saudi Shoura council members and government officials in the ministries.
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bigdurian



Joined: 05 Feb 2014
Posts: 401
Location: Flashing my lights right behind you!

PostPosted: Tue Oct 04, 2016 3:12 pm    Post subject: Reply with quote

Although, bonuses and allowances are being cut at all levels of the army, including lower ranks of enlisted men.

A guy I spoke to earlier in the week said it's not so much the change in calendar that bothers him, but more the loss of bonuses and allowances, which are worth more.
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Balzac



Joined: 14 Jun 2007
Posts: 266

PostPosted: Wed Oct 05, 2016 10:27 am    Post subject: Living in KSA Reply with quote

Taxes are 90% likely to be coming this time as KSA has never ever been in this predicament before and now it's becoming an economic necessity.

As I said previously, I have a friend who works "very high up" in the Finance Ministry and he confirmed that it will be introduced next year e.g taxes in all forms not just income tax. The days of high tax free salaries and decent housing allowances are over folks. Time to move on and get a job somewhere else.

You have just seen also how they have put up the costs of KSA visas which have doubled and even tripled in cost in some instances. A SERE (Single Entry) visa is now 600 SARs from 200 SARs and a MERE (Multiple Entry) is a whopping 1,100 SARs from only 500 SARs previously!

That's also I believe why they just changed over to the Gregorian calendar as it will make it easier for businesses and for collecting taxes. They have also made plans to increase privatisation as well and so having more private companies trading in KSA will be eased by using a western calendar. That's part of their Saudi 2030 Vision proposals.

It's all happening folks!
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Makkah



Joined: 08 Oct 2014
Posts: 113

PostPosted: Thu Oct 06, 2016 8:31 pm    Post subject: Reply with quote

Anybody who has been working as a contractor for the 'big kahuna' for a least 5 or 6 years probably doesn't really care at this stage since they have more than likely exceeded their target and may well leave. British (GBP) or Irish (EUR) South African (Rand), the exchange rate has been working to their advantage for the last two years so much so that their salaries have increased by 20% to 30% when the riyal is exchanged into the their local currency. On top of that factor in 5% to 10% annual pay rise. Though, if you are at the ceiling of Grade 11 then it's a different story.

On the negative side, during the same timeframe a few guys have also doubled in size too. Laughing Laughing
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Leno



Joined: 20 Dec 2015
Posts: 51

PostPosted: Sat Oct 08, 2016 7:27 pm    Post subject: Reply with quote

"because their qualifications fall short for the better direct-hire positions."

You know how to make people feel bad. I come across with yr negative attitude towards many posters on this website, and nobody is directly offending you nor attacking you as nobdoy knows you, so pls take note of that fact.
Posters are asking questions or sharing their experience or soemone else's.


If I or anyone applied for a job overseas, first I would choose the city I want to live in, not randomly after governemnt or private jobs.
The choice of employers or the city is nothing to do with " qualifications fall short".

Some westerners/Foreigners migrate to Saudi arbaia to take a job for 10 years minimum with their spouses and kids to educate in KSA, and some job applicants are single and want to reside and work in KSA for a year or 6 months.
Besides, most ( Uni)teaching jobs in major cities are only contracted via middleguys/private companies, and direct hired jobs are only available in small towns, and still private recruiters are after it.

But in KSA, private companies are notorious, and infact , they recieve a lot of subsidies, bank loans, and previlages for hiring saudi citizens as 10% or 20% of number of their total employees ( incl. foreigners).
And Aso universities receive big fundings anually from Saudi government.
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veiledsentiments



Joined: 20 Feb 2003
Posts: 17644
Location: USA

PostPosted: Sun Oct 09, 2016 1:36 am    Post subject: Reply with quote

Leno wrote:
"because their qualifications fall short for the better direct-hire positions."

You know how to make people feel bad. I come across with yr negative attitude towards many posters on this website, and nobody is directly offending you nor attacking you as nobdoy knows you, so pls take note of that fact.
Posters are asking questions or sharing their experience or soemone else's.

Seems to me that this is just a fact of life that many teachers who come here looking at the possibilities need to be aware of...

I don't see it as negative.

Is your upset due to your being one of those without the qualifications that the better employers require?

VS
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sicklyman



Joined: 02 Feb 2013
Posts: 930

PostPosted: Sun Oct 09, 2016 8:52 am    Post subject: Reply with quote

Leno wrote:
"their qualifications fall short for the better direct-hire positions."

nobdoy ... soemone ... governemn ... Saudi arbaia ... recieve ... previlages ... anually


nuffsed

Rolling Eyes
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Leno



Joined: 20 Dec 2015
Posts: 51

PostPosted: Sun Oct 09, 2016 5:32 pm    Post subject: Reply with quote

Expats/overseas Job applicants choose the city/country where they want to reside, salary range or benefits, etc, not the employer.
Regardless of qualifications, once the contract is signed, both parties must honor the contract.

I am not interestd to work in KSA, nor will I recommend anyone to work in KSA, as they do have more than enough foreign-educated citizens in their 20s and 30s.
But, if you are interested to get a job in kSA, I can help you, Veiled.
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plumpy nut



Joined: 12 Mar 2011
Posts: 1652

PostPosted: Sun Oct 09, 2016 6:12 pm    Post subject: Reply with quote

sicklyman wrote:
Leno wrote:
"their qualifications fall short for the better direct-hire positions."

nobdoy ... soemone ... governemn ... Saudi arbaia ... recieve ... previlages ... anually


nuffsed

Rolling Eyes


Yeah, but really as everybody knows, "qualifications" work great for the selected "right people", higher salaries, more respect and prestige for the "right stuff" teachers Laughing All these things work great for the Saudi hierarchy as well, which thrive off of this haughty stuff. After all this is said and done though, the Saudi students still learn nothing because "lack of qualifications" has never been the problem in Saudi education. Every teachers long term stay period, bad jobs, good jobs depends on how well you have learned to bullshit with the students and how you present yourself on the surface. The teachers in direct hire positions in addition have pieces of paper like awards, which makes the Saudi hierarchy feel important, as well as providing an easy life for teachers in those positions. The bottom line remains though, given the Saudi culture, are you an easy victim for the students or not? that's what makes the difference in the quality of your teaching experience and for your length of stay in Saudi Arabia.
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