Shoura: No taxes on expats

April 4, 2012

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Riyadh, April 4: The Shoura Council rejected a move to tax the incomes of individual expatriate workers in the public and private sectors at its 18th regular session yesterday.


The session was chaired by Council Vice President Dr. Mohammed bin Amin Jafri.


Secretary-General of the Shoura Council Dr. Mohammed Al-Ghamdi said the council made the decision after hearing the arguments for and against the proposal.


He added that since proponents of the move could not attain the requisite majority in the house to secure approval, it was rejected. He said the Kingdom is implementing a number of developmental projects in various sectors that need professional skills.


Supporters felt if approved, the proposal would have helped bridge the gap between the wages of Saudis and non-Saudis and increased the chances for locals to work in the private sector. Al-Ghamdi clarified the proposal had been submitted some time ago.


News that the debate on the issue had been revived had drawn criticism from the expatriate community, especially low-paid workers.


According to a local newspaper, the finance committee of the Shoura Council has recommended carrying out fresh studies on the possibility of imposing tax on all foreigners working in both the public and private sectors in the Kingdom.


The source said the new proposal was made by council member Muhammad Al-Quwaihes, who presented it as an additional recommendation attached to the annual report of the Department of Zakat and Income Tax that had already been discussed by the house.


“The government is neither levying a single riyal in tax or Zakat on foreign workers remittances, nor do they need to pay any kind of taxes,” Al-Quwaihes said.


An expatriate, Sauda Salem, expressed dismay at the possibility foreign workers may have to pay income tax.


“It is a great shock for all expats who are not managers or making good money,” he said.


As most foreigners are unable to meet their expenses, their wives try to support them by working small jobs, he added


“I request them to reconsider the plan of taxing expats only to support Saudization,” he suggested.


Another expat, Mohammad Nazeer, claimed expatriates would be happy to contribute to the Saudi economy by paying income tax on their salaries and bonuses, adding they were very grateful for the generous tax-free salaries and benefits enjoyed in Saudi Arabia.


Another worker, Tanveer Ahmad, was willing to pay Zakat as long as the money went to the needy.


“As a Muslim, in order to make my earnings fully Halal, I should pay 2.5 percent of my earnings toward Zakat. I do pay it, but only in my native country where there are needy people. I have no objection to paying Zakat here if the government makes sure it goes to the needy,” he said


According to Shoura member, Al-Quwaihes, levying an income tax on foreigners would boost the ongoing Saudization drive. “Foreigners working in the Kingdom transfer about SR100 billion to their countries of origin annually,” he said.


Al-Quwaihes noted most countries in the world impose income taxes on individuals who work and earn money in those countries.


“It is high time we impose income tax on foreigners. It is also to be noted that foreign workers are beneficiaries of all government support and subsidies on utility services and products such as water, electricity, wheat, and petroleum products,” he said.


Nearly a decade ago, the Shoura Council reviewed the possibility of imposing taxes on foreign workers but later the proposal was shelved.


There are 8 million foreigners in the Kingdom, an overwhelming majority of them in the private sector.


For another expatriate, Dr. Victoria Charlston, imposing taxes on foreigners would mean the job market would instantly lose many of its Western professionals.


“Financial reward is pretty much the only reason why Westerners decide to spend a stint of their working lives in KSA. There is little other reason or incentive. Let’s hope that KSA will have enough of its own educated, highly trained manpower who will fill the gap if expatriates leave.”


She said taxing non-Westerners earning low salaries for their hard labor was akin to daylight robbery.


“They have so few rights compared to their fellow countrymen who happen to live and work in other countries around the globe, and to tax them would be another nail in their coffin,” she said.


“Should taxes be imposed on all foreigners, and this term in itself is laughable as many so-called foreigners are third and fourth generation citizens who would long ago have enjoyed equal rights to citizens should they have settled elsewhere in the world, then they should immediately and justly be afforded similar status to KSA nationals.


“Furthermore, to repeatedly discuss and question in newspaper columns these workers’ rights to send their hard earned money to their relatives overseas is quite frankly a disgrace. Their money is simply the fruit of their labor, to dispose of as they wish.


“They have not been lazily sitting on their backsides waiting for money to be deposited in their bank accounts, as many of KSA’s youngsters do. When one makes the decision to work in KSA, one immediately has to give up certain aspects of life that would be enjoyed in one’s homeland. This sacrifice is offset by a rewarding salary.”


Both Saudi and expatriate employees working in the Kingdom had to pay income tax until it was abolished in 1975. Later, there were moves to reintroduce income tax on foreigners in the late 80s. However, in 1988, King Fahd scrapped the plans.


At present, only Saudi citizens and Saudi companies need to pay Zakat of 2.5 percent annually on profits and on the assessable amount for individuals, in addition to a tax on foreign investors. In a bid to attract more foreign investment into the Kingdom, the government slashed in 2004 the tax rate imposed on foreign investors from 45 to 20 percent.


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News Network
June 23,2020

Riyadh, June 23: Saudi Arabia has decided to go ahead with the Hajj pilgrimage with strict health measures and protocols in an effort to prevent the spread of covid-19.

Minister of Health Dr. Tawfiq Al-Rabiah and Minister of Hajj and Umrah Dr. Muhammad Saleh Benten today addressed a joint virtual press conference today. 

Minister of Hajj expected that number of domestic pilgrims performing the pilgrimage this year will not be more than 10,000. He also confirmed that no pilgrims from outside the Kingdom will be allowed to perform Hajj this year.

Dr. Al-Rabiah said pilgrims should be less than 65 years of age and not suffering from any chronic diseases.

The Hajj pilgrimage, which is one of the five pillars of Islam and a must for able-bodied Muslims at least once in their lifetime, will this year only welcome a “limited number” of people from inside the Kingdom, authorities had said on Monday.

Every year, about 2.5 million pilgrims visit the holiest sites of Islam in Makkah and Madinah, which could make it a possible breeding ground for the disease.

To prevent COVID-19 from spreading among pilgrims, the health ministry, in collaboration with the Ministry of Hajj and Umrah, has developed the plan to ensure the safety of all visitors.

“We have worked with the Ministry of Health to develop preventative and precautionary measures and protocols that are needed to ensure a safe Hajj season,” Benten said.

Protocols:

1. No more than 10,000 people will be allowed to perform the Hajj pilgrimage.

2. All pilgrims will be tested before they reach the holy sites.

3. Only those under the age of 65 will be allowed to perform Hajj this year.

4. All pilgrims will be asked to self-quarantine after they complete the Hajj rituals.

5. All workers and volunteers will be tested before the Hajj pilgrimage begins.

6. The health status of all pilgrims will be monitored daily.

7. A hospital has been prepared for any emergency that occurs during the pilgrimage.

8. Social distancing measures will be enforced.

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SAN
 - 
Tuesday, 23 Jun 2020

Please check its 1000 or 10,000

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News Network
April 18,2020

Dubai, Apr 18: Saudi Arabia has reported 1,132 new coronavirus cases, taking the total number of confirmed COVID-19 patients to 8,274, the Ministry of Health revealed on Saturday.

The ministry has also announced five more deaths from the virus, taking to 92 the Kingdom’s death toll.

Recoveries
As for recoveries, 280 new recoveries were reported, pushing the total number of patients recovered to 1,329.

The ministry revealed that 79 per cent of today’s cases are expatriates and that 65 per cent of the cases were detected through intensified and active COVID-19 screening in densely-populated areas.

A total of 201 patients of Saturday’s cases have contracted the disease due to being in contact with existing cases, the ministry added.

The new infected cases have been placed under complete isolation and they are receiving necessary medical care, an official from the ministry said.

He affirmed that medical teams are intensifying efforts and screening tests in workers' neighbourhoods and accommodations in order to limit the spread of the disease.

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News Network
April 25,2020

Apr 25: External Affairs Minister S Jaishankar on Friday spoke to his counterparts from Qatar, the UAE, Niger, Palestine and Czech Republic and held discussions around the coronavirus infection.

In conversation with Qatar Foreign Minister Mohammed bin Abdulrahman Al Thani, Jaishankar discussed their experience of dealing with coronavirus infection and also thanked him for taking care of the Indian community.

"A cordial conversation with FM @MBA_AlThani_ of #Qatar. Discussed our #coronavirus experiences. Thanked him for taking care of the Indian community. Such challenging times will only further strengthen our friendship," he said in a tweet.

Jaishankar also spoke to United Arab Emirates Foreign Minister Sheikh Abdullah bin Zayed.

"Pandemics further highlight the need for international cooperation. Few better examples than our relationship with #UAE. Applaud the generosity of spirit and clarity of policy that has characterised its approach. Thank HH @ABZayed for the warm conversation today," he said in another tweet.

Jaishankar also spoke to Niger Foreign Minister Kalla Ankourao and assured him of India's support in meeting the coronavirus challenge, including medicines.

"Just spoke with FM @kallaankourao of #Niger. Assured him of India's support in meeting the #coronavirus challenge, including medicines. Discussed its global implications in the context of the United Nations," he tweeted.

Jaishankar also discussed the coronavirus situation with Palestine Foreign Minister Riad Al Malki. "Welcomed speaking with FM Riad Al Malki of #Palestine. Discussed the #coronavirus situation. Assured him of Indian medical assistance," he said in a tweet.

He also exchanged experiences on coronavirus response with Czech Foreign Minister Tomas Petricek.

The minister said the two leaders agreed that there are valuable lessons for international cooperation.

"Glad to catch up with FM @TPetricek of #CzechRepublic. Exchanged our experiences on #coronavirus response. Agreed that there are valuable lessons for international cooperation. Look forward to keeping in touch," he said in a tweet.

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