Saudi Arabia Delays Remittance Tax
December 28, 2016 Taxation in Saudi Arabia
In a recent media interview the Minister of Finance of Saudi Arabia Mohammed Al-Jadaan stated that the previously proposed tax on remittance by non-residents in Saudi Arabia will be delayed.
It was recently proposed that any non-resident sending money out of Saudi Arabia will be taxed at a rate of 6 percent, if the individual has been living in Saudi Arabia for less than a year.
Any individuals who have lived in Saudi Arabia for more than a year will see a reduced tax rate, which would be capped at 2 percent for those in the country for five years or more.
The Minister added that the conditions of the tax are yet to be finalised, and it is possible that the measure could include exemptions for remittance to certain countries, such as Yemen, Burma, and Syria.
The value of the remittance being sent out of Saudi Arabia has increased significantly in recent years, and it is now estimated that Saudi Arabia now sees the second highest level of remittance in the world, only behind the USA.