Wednesday, 27 April 2016

6% Tax on Foreign Remittance (Foreign Money Transfer)

A proposal has been in discussion in Shoura Council to impose 6% tax on all remittance by expatriates from Saudi Arabia. Finance Committee of the Shoura Council recognizes that 6% on remittance is a little high. The proposal has been made to reduce the tax on foreign remittance from 6% to 2% after first 5 years of its implementation. The collection of the tax will be made at the time of transfer of money from Saudi Arabia by banking or money remittance companies. In this way, a tax of SR 60 will be imposed on transfer of every SR 1,000 by an expatriate to his home country. Also Read: Procedure to Transfer Money through Enjaz Remittance

The world economy is constantly changing and today it is somewhere which would seem impossible by experts only a couple of years ago. Such is the unpredictable nature of world economics.  Due to these changes all countries have had to make some changes and adjustments in how they operate. The Shoura Council in the Kingdom of Saudi Arabia is shortly expected to have a discussion on Sunday. The discussion is supposed to be based on a tax which has been proposed to be levied on the remittances sent out of the country by the expatriates residing in the Kingdom. Also Read: Foreign Remittance Charges from Saudi Arabia

The proposal, which was made by the Finance Committee of the Shoura Council, had been drafted by Hossam Al Anqari. Anqari is a member of the Shoura Council. This proposal comes in the wake of strong discussion upon the issue in the entire GCC region. In accordance to a report released by Gulf Research Center, earlier on this year, the GCC region countries are vital sources of remittances which circulate billions of dollars mostly to third world and second world Asian economies. It is approximated that around 23 percent of the total $400 billion of the world’s official remittances sent in the year 2013 had been sent from the GCC region. This amounts to around $90 billion which makes the GCC region the leading remitter in the entire world. From amongst the GCC countries, the Kingdom of Saudi Arabia leads the remittance list. Also Read: 12 Interesting Facts about Remittance Sent from Saudi Arabia

Something else which will also be under discussion will be a report which had been issued on standardizing the regulations for the youth councils from the Committee’s of the Shoura Council on youth, social and family affairs. This had been proposed by Hamed Al Sharari, a member of the Shoura Council. The other topics will include a report submitted from the environment, water and agriculture committee. The report will be concerning the new power and water tariffs. Also Read: How to Reduce Foreign Remittances from Saudi Arabia? $44 billion in 2014

The members of the Shoura Council will be sitting on Sunday in order to also discuss the report issued by the Health Committee on the regulations which are concerning private health facilities, pharmaceutical facilities and health care professions. Reports which will be scrutinized in the meeting include the report issued by the HRDF or Human Resource Development Fund which had been submitted by the committee on human resources and management, the report by the committee on telecommunications, transportation and information technology on General Authority for Civil, and also the committee on energy and economy report on the Ministry of Minerals and Petroleum. Also Read: Top 5 Reasons to Avoid Western Union for Remittance

Source: Arab News

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