Saudi Arabia Won’t Enact Remittance Tax

January 23, 2017 Taxation in Saudi Arabia

Remittance tax Saudi ArabiaRIYADH – Saudi Arabia has put an end to rumours that it will look at foreign remittance to make up its tax shortfalls.

On January 22nd a spokesperson for the ministry of Finance of Saudi Arabia confirmed that the country would not be implementing a remittance tax, despite recent rumours claiming otherwise.

Over the last several months several government officials have proposed and discussed the feasibility of implementing a tax on any remittance sent from Saudi Arabia by individuals who are not citizens of the country.

The tax was expected to be set at a rate of approximately 6 percent for individuals who have resided in Saudi Arabia for less than a year, with the rate falling each year, to be capped at 3 percent.

Saudi Arabia is often regarded as having the second highest volume of overseas remittance in the world, second only to the USA.

The tax was meant to capitalize on the high levels of remittance and raise tax revenues which were not related to the volatile international prices of oil.