Finance Minister Ibrahim al-Assaf announced on Sunday that plans to impose income taxes on expatriates working in the country are under serious consideration in Saudi Arabia.
According to Mr Assaf, the advisory council, or Shura, is currently reviewing a draft bill which aims to impose income taxes on foreign individuals and decrease the tax on foreign companies located in the region from 45% to 30%.
The Saudi authorities are keen to reform the region's international tax regime in order to stimulate foreign investment and reduce the country's reliance on oil. Speaking at the weekend, the Finance Minister confirmed that there are no plans to levy a similar tax on Saudi citizens or companies, but reassured expatriate workers that the new income tax, if introduced, would be 'lower than the 30% proposed for companies'.
'The taxation on foreigners is important because there are individuals who have investments in the Kingdom,' he told reporters in Riyadh.
According to estimates, around 7 million expats live and work in Saudi Arabia, and of that number, 5 million are employed by the private sector. It is thought that foreign workers remit around $18 billion to their home countries annually.
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