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Dependent fee hits expats in Saudi Arabia

Jeddah - The fee came into effect on Saturday.

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The new dependent fee introduced by Saudi Arabia has hit expats who were going on vacation with their families during the peak holiday season, according to reports.
When the expats tried to pay exit-entry visa fee for family members, they were prompted by the online payment system to first clear the dependent fee for the remaining months of the validity of their iqamas (residence permits), reported the Saudi Gazette.
The dependent fee came into effect on Saturday.

The online payment system displayed only exit-reentry fees from Saturday evening till Sunday morning. Later, the system started displaying complete and accurately calculated amount of dependent fee based on the validity of iqama against each dependent.
The payment of dependent fee is not only directly linked with the renewal of iqama but also the issuance of exit-reentry visa, whichever comes first, the report adds.
The exit-reentry process can be done against single individual dependent by paying the fee till the date of the validity of iqama.
But for renewing iqama, it is mandatory to settle the amount for all dependents.
"The fee mechanism falls under the jurisdiction of the Ministry of Finance. Passport Department (Jawazat) has nothing to say. It is working according to the new system," a senior Jawazat official was quoted as saying by Saudi Gazette.
A resident's dependent is expected to pay SR1,200 for one year as of July 1, 2017, according to the government's Fiscal Balance Programme. All dependents are included in the regulation, including children, wife, as well as maids and drivers working directly for a sponsor. Monthly fee for each dependent costs SR100 this year. However, it will increase by SR100 per month every year and reach SR400 by 2020 for each dependent.
According to data by Okaz Arabic daily, through this programme, Saudi Arabia will generate SR1billion in revenue by the end of the year and SR65billion by 2020.
Saliha Gardezi, a Pakistani expatriate born in the Kingdom, who lives with her British husband and their baby daughter in Riyadh, told Saudi Gazette: "I totally understand Saudi Arabia's need to give more opportunities to its nationals and tackle unemployment. However, the decision to effectively tax expats to the point that many of them will be forced to leave is demeaning to those people who have also contributed to the country's development alongside their Saudi brothers and sisters."
Omar Ghazi, an Egyptian national living in Riyadh, told the newspaper: "Low-income and middle class families with children will have to send their family members on final exit.

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
With inputs taken from Arab News