Monday, August 21, 2017
No Expat Levy on Government Contractors
No expatriate levy tax on the contractors, who are working on the government projects before the decision of expatriate workers tax as per the announcement of the Council of Ministers published in Saudi Gazette. Most Viewed: Year-Wise Expat Levy fee
All expatriate workers who were employed on public sector projects before December 2016 will be exempt from the expat levy tax. This exemption also applies to contractor employees whose government projects are expected to finish by the year 2018. Recommend: Proposal to shut expat grocery stores
- The decision was taken after the Council of Saudi Chambers approached Crown Prince Mohammed Bin Salman. A special committee will be formed for handling the procedures to compensate those government projects whose employees may suffer by the decision of the expat levy tax.
- Government projects usually take 3 to 5 years to complete, and the companies set their budget according to the required materials and the salaries of the employees. Additional expenses may harm the quality of the public sector projects. Trending: Dependent fee exempted for this category list
- Because of the cash crunch in the project, the contractors may not be able to pay the salaries for their workers, which could delay the workflow and the project implementation time.
- It also affectsthe issuance and renewal of operational licenses for the contractors. Such inconveniences may harm the project to achieve the goal of Vision 2030 Council said . Read: No Exit re Entry till you pay dependent fee
The council also suggested hiring expatriates only when qualified Saudi citizens are not available for the job. Reviewing the CEDA (Council of Economic & Development Affairs) proposal, The cabinet approved the decision with its Commission of Experts.
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| No Expat Levy on Government Contractors |
