Job Discussion Forums

[veiledsentiments]

[nomad soul]

[hash]

[sicklyman]

[sicklyman]

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[Leno]

sicklyman
I saw it here or some where else that some expats were asked to sign a new contract after arrival, or after a probationary period or something like that.
Employment visa application at overseas Saudi embassy requires a copy of a contract ( before entering KSA).

Re: "assign to any location (another city) at any time" is against Saudi labor law, but we all are aware of the fact that the employer would pull that kind of trick when and if he wants someone to quit or to work elsewhere for genuine reason.
If that clause is in your contract, and if you agreed to that, that means you are flexible to work and reside anywhere, and Saudi labor law cant help you.

The employer must give ample time (like 3 months) for a foreign employee to move to a new location, not with 3 days notice.
Or the employer must offer a job at a new town/city upon renewal of a contract.
Sometimes, there could be a valid reason like "an expat must be removed immediately from a work plce due to misconduct". At the same time, that expat has the right to leave the job, or agree to move to a new location.

Just saying that many private business owners/ Saudi employers do not understand their own Saudi labor law, and they dont need law, but expats do for transparency.

But some expats like you are very flexible, some are not/ cant, ( one american woman was crying because she paid for some beauty treatment for 3 months/5k Riyals in advance at speacil discount rate, and she refused to move to another city))and you would sell well in KSA. Flexibility is a must, even it is the abuse of your own rights for the sake of $$$.

[nomad soul]

[sicklyman]

[bigdurian]

Currently located in a place that makes Riyadh look like Amsterdam,

But I LIKE IT......

[Super Modal]

http://english.mubasher.info/news/3008222/KSA-not-to-impose-10-tax-on-residents-Official?currentUserCountryCode=SA

[Makkah]

[nomad soul]

Back to the subject of taxes/fees...

Saudi Arabia’s new expat fees: What will it cost?
Arab News | 23 December 2016
Source: http://www.arabnews.com/node/1028596/saudi-arabia

JEDDAH: Saudi Arabia plans to introduce an “expat levy” from 2017, it was confirmed during Thursday’s budget announcement, with charges of up to SR800 per worker to be phased in by 2020.

Companies currently pay a levy of SR200 per month per expat employee, but only for expat employees that exceed the number of Saudi employees. But that will be gradually increased from next year, the government’s “Fiscal Balance Program – Balanced Budget 2020” document shows.

From next year, the levy on expat workers will be gradually revised upwards, providing an additional impetus for employers to hire more Saudis. For companies in which expats do not exceed the number of Saudi or GCC employees, the fee will no longer be waived, but will be charged at a discounted rate.

A fee on dependents of expatriate workers will also be levied. It will commence in July of 2017, in order to minimize impact on families with children enrolled in school. Currently, neither Saudi nationals nor foreign laborers pay income taxes, and this policy will remain in place, the government says.

Here is what the new expat levy will cost:

In 2017: Dependents of expats will each incur a monthly fee of SR100, from July onwards

In 2018:
• Dependents of expats will each incur a monthly fee of SR200, from July onwards
• In companies where the number of foreign employees is equal to or lower than the number of Saudis, a monthly fee of SR300 will apply from January onwards
• In companies where the number of foreign employees exceeds the number of Saudis, a monthly fee of SR400 will apply from January onwards

In 2019:
• Dependents of expats will each incur a monthly fee of SR300, from July onwards
• In companies where the number of foreign employees is equal to or lower than the number of Saudis, a monthly fee of SR500 will apply from January onwards
• In companies where the number of foreign employees exceeds the number of Saudis, a monthly fee of SR600 will apply from January onwards

In 2020:
• Dependents of expats will each incur a monthly fee of SR400, from July onwards
• In companies where the number of foreign employees is equal to or lower than the number of Saudis, a monthly fee of SR700 will apply from January onwards
• In companies where the number of foreign employees exceeds the number of Saudis, a monthly fee of SR800 will apply from January onwards

No income tax
Saudi Finance Minister Mohammed Al-Jadaan told reporters in Riyadh on Thursday that these fees do not apply to domestic helpers, such as drivers and cleaners, but only to expats working in commercial entities. "There are two kinds of fees, the first is according to the number of family members an expat has in return for utilities used… this minimal amount will increase gradually every year,” the minister said in response to a question from Arab News. “The second is already imposed on companies which employ expat workers; this will increase gradually as well until 2020.” The finance minister ruled out income taxes on Saudi nationals, foreigners or company revenues.

(End of article)
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[veiledsentiments]

This allows them to use an existing system whereas imposing an "income tax" would require a large bureaucracy to monitor and collect which would be extremely expensive.

What isn't clear is who will pay it. Right now it is paid by employers and I suspect that will remain. But what about when they start to charge for dependents?

It will merely put more downward pressure on pay and benefits...

VS

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