Is the new dependency fee by Saudi Arab a trap?

The budget of 2017 brings a big shock to the non- residentials in Saudi Arabia. This year onwards, Saudi Arabia plans to introduce an extra tax on the expats making it very expensive for their families to live in the country. The Thursday announcement of the budget confirmed the charges of SR200 per month for every dependent, gradually increasing up to SR800 by 2020. The plan for the gradual increase has been mentioned in the government’s “Fiscal Balance Program- Balanced Budget 2020.” 

Nirmal Singh 3C Company explains how the dependency fee would affect the emigrant and the companies hiring them. After the implementation of the budget 2017, the head of the family will be overburdened with the fees for each of his dependent. More dependent, more responsibility and now more fees. The fee on every dependent will keep on increasing, more for the companies that do not employ 50% Arabs in their companies. Currently the expatriates were paying SR2400 per annum for the iqama fee, which is also believed to rise up to SR9600 by the mid of 2020. This much imposition of tax on the non-residentials will make it very difficult for them to continue their jobs there. 




So how does the dependent’s fee work?

From July, 2017 emigrants living in Saudi Arabia must pay SR100 per month for every dependent for in the name of dependent’s fees. So if an expatriate has a wife and a child then he would pay SR200 per month. Then the amount would increase to SR200 per month in 2018 i.e. SR400 per month for the family mentioned above, SR300 per month for 2019 and SR400 per month for 2020.
Iqama fee- The second type of fee is something which the non- residentials have already been paying for a very long time now, but was only for the employers who do not have 50% of Saudi employees. However, 2017 onwards even the companies who have 50% Saudi employees will also pay the fee at a discounted rate.

Just like the dependents fees, the Iqama fee will increase gradually till the year 2020. The ratio of the same is also similar to the Dependents fee, from SR2400 in 2017 to SR4800 in 2018. The companies that employ 50% of Saudi’s are liable only for SR3600 per annum. For the year 2019, the companies that don’t have 50% Saudi’s pay SR7200 and those that have pay SR 6000. And for the year 2020, it is SR9600 for the ones that don’t have 50% Saudis and SR8400 for the ones that have.

When asked about how the dependent fee would affect the Indian origin workers in Saudi, Nirmal Singh 3C Company believes that this is not just about India, Saudi has a lot of emigrants working with them and this is a huge shock to all of them and would impact everyone drastically.
 
Location: New Delhi, Delhi, India

Comments

Post a Comment

Popular posts from this blog

Black Money Transaction suspected from Bank after demonetization, government starts the investigation

Image
The government on Friday has provided information on the post note ban transactions given by 13 banks on 5,800 dubious companies. As per their information, ₹ 4,574 crore had been deposited in the banks after the demonetization in around 13,140 bank accounts of those companies. They also informed that ever since the demonetization, around ₹ 4,552 crore had been withdrawn from those accounts. Nirmal Singh 3C Company says that there is data that proves there were many companies who had more than 100 accounts their names. In fact, there were such fraudulent companies who had around 2,134 accounts, and many of them had around 300 to 900 accounts. The banks provided a data where the companies showed a balance of ₹ 22.05 crore on November 8, 2016 and before being striked off as of November 9,2016, they had deposited a total amount of ₹ 4,573.878 crore in the accounts but withdrew ₹4552 crore on November 9. The companies that had a loan account had a negative opening balance of arou
Read more

Will REMOVE THE Dmrc CHIEF IF THE PROPOSED HIKE IS IMPLEMENTED, SAYS Aap GOVERNMENT.

Image
One news that has been triggering amongst the people of Delhi is the proposed hike in the fares of the metro. Nirmal Singh 3C Company said that the prices of the metro increased just a few months back and with another proposal to increase the base rates of the metro have created a lot of fury amongst the crowd. Seeing this, the government of Delhi has requested the metro staff to not increase the rates of the metro and warned them that despite the multiple requests from the government, if they still continue with the hike, then the AAP government would be forced to remove Delhi metro chief, Mangu Singh from his position The last hike in the rate of the metro has taken place just in the month of May, and it has not even been six months and the metro staff has proposed another hike for the same. This decision has been strictly opposed by the Delhi government and this has given the people of Delhi some hope.   Nirmal Singh 3C Company said metro is the most common form of t
Read more

Delhi Police Officer Faced A Mild Warning After Forcibly Kissing A Woman - Nirmal Singh 3C Company

Image
In a space of four years, from 2012 to 2016, as many as four house officers have been charged with molesting women. Of those four Delhi Police officers, only one has seen the trial rooms. Back in 2014, Kuldeep Singh, who was the SHO of a police station in Defence Colony, Delhi, had allegedly sent lewd text messages to a woman who had a case in the same police station. He also tried calling the woman at odd hours at night. During an incident singled out by the woman, Kuldeep Singh came to her office and kissed her forcibly. As any woman would do in this situation, she filed a complaint after talking to the seniors at the police station. A simple inquiry was put in action on the issue and Kuldeep was let go after a mild warning at best. He is now working at Neb Sarai as a station house officer.- Nirmal Singh 3C Company After a news portal filed an RTI application it was found out that as many as four officers have been charged with molesting women in the last four years, on
Read more