Final year to exempt small firms from expat levy begins
The third and final year began to exempt small firms from the monthly expat levy.
The decision was approved to exempt small enterprises starting from the middle of Sha’ban 1441 (April 2020) and for three years until the decision ends in the middle of Sha’ban 1444 (March 2023)
The decision included exempting labor fees from work permits amounting to SR800 per month (SR9,600 annually) to be reduced to SR100 only, which is implemented electronically through the electronic portal of the Ministry of Human Resources and Social Development.
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According to the details of the decision, workers will be exempted from fees in small establishments with nine workers or less, with the employer working full-time while raising the number of exempted workers to 4 workers when hiring another Saudi.
It is noteworthy that the total number of establishments with a total number of employees of 9 or less is about 576,312 establishments.
The ministry had previously confirmed that the exemption aims to provide further flexibility in managing the contractual relationship between the establishment or the employer and the expatriate worker.
It aims to improve the management of financial flows with establishments in the private sector and allow scheduling of their financial payments.
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