Saudi Arabia Looks At New Taxes
June 9, 2016 Taxation in Saudi Arabia
RIYADH – Saudi Arabia is looking to enact a raft of new tax measures in order to offset its reliance on oil.
Earlier this week the Minister of Finance of Saudi Arabia Ibrahim Alassaf announced that the government is looking a series of new measures aimed at raising new tax revenues and reducing reliance on oil revenues.
One of the key measures announced by the Finance Minister is a proposed tax to be levied on the earnings of non-residents, a move which could raise significant new funds, as approximately one third of workers in the country are non-residents.
In addition to the income tax, a new sales tax of 5 percent will be enacted over the course of 2018.
Extra taxes will also be levied on tobacco products, with further fees to be charged on airport arrivals.
The new taxes are intended to reduce the government’s reliance on oil revenues, which currently account for approximately 80 percent of the nation’s income.
Photo By: Andrew A. Shenouda