Expats, employers worried over uncertainty of Saudi's tax proposal..: It is "LIKE TELLING US TO 'GO HOME'"

JEDDAH/DUBAI | BY ANGUS MCDOWALL AND CELINE ASWAD.

Expatriates in Saudi Arabia and their Saudi employers alike voiced unease about a proposal that the government is studying to impose income tax on foreign workers to make up for falling oil revenues.

Around a third of the 30 million inhabitants of the world's top oil exporter are foreigners, many of them drawn, despite ultra-conservative social restrictions, by the absence of tax and the lure of salaries higher than they could secure at home.

A National Transformation Plan of economic reforms, released on Monday, said 150 million riyals ($40 million) had been set aside for preparing and implementing tax on expats, but Finance Minister Ibrahim Alassaf said no decision had yet been taken.

Still, the news that such a proposal was being formally studied by the government was enough to alarm some foreign workers.

"If they impose the income tax on expats and do not offer any benefits in return, such as house ownership and the right to own assets under my name, then I would pack up and leave," said Ammr Baghdane, an American manager at a retail group.

Read on..: http://uk.reuters.com/article/uk-saudi-plan-expats-idUKKCN0YU1OO

http://www.thenational.ae/business/economy/saudi-arabia-looks-at-imposing-income-tax-on-expats
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JEDDAH: The Shoura Council?s finance committee is backing a proposed tax on the remittances of expats, starting from 6 percent in the first year and gradually reducing to 2 percent permanently from the fifth year onward.
The tax proposal was drafted by Hossam Al-Anqari, head of the General Auditing Bureau and former member of the Shoura, who said this would be a way to force expats to invest or spend their money in the Kingdom.

6% tax on expat remittances urged. http://www.arabnews.com/node/933946/saud

Things are slowly changing. Initially it was cut in wages. Some stayed behind and a few packed and left, knowing what is yet to come. AND Now this.. A tax bite into their wages. Rent hikes are already being applied 5-10% higher this year. Cost of living has shot up.
Now a minimum wage for the hired help has trickled in. What next..?

I will still go and see the wonders they have created, but work there, I will back off for now till we get to know what the BEAST will look like in details. It may never happen, who knows!

Enjoy reading.

FH.

Edit.: India aims to rescue thousands of starving expats laid off in Saudi Arabia.

India said on Sunday, 31st July 2016, it will send a government minister to Saudi Arabia to try to bring back more than 10,000 Indian workers who are facing a "food crisis" because they are unable to afford meals after being laid off from their jobs.

Low oil prices have forced the Saudi government to slash spending since last year, putting heavy pressure on the finances of local construction firms that rely on state contracts.

Please Read on..: http://www.thenational.ae/business/economy/india-aims-to-rescue-thousands-of-starving-expats-laid-off-in-saudi-arabia

fh.