The Saudi Arabian Council of Ministers recently announced entities employing nine or fewer individuals (small enterprises) are now exempt from paying annual expatriate levies for up to four foreign national employees.

The Council has also exempted small enterprises from paying the levy on foreign nationals married to Saudi nationals and their children, as well as GCC national employees. The annual foreign national levy is 200 Riyals a month for each foreign national employee, or 2,400 Riyals annually.

Reports suggest some small enterprise owners have been required to prove they themselves work full-time for their own business to take advantage of the levy exemption.

The annual levy was launched in 2012 in conjunction with a strict Saudisation strategy to improve the representation of Saudis in the private sector.

What This Means for Employers

The exemption will lower the cost of employing foreign nationals for eligible small enterprises.