The budget 2017 is inclusive of measures that will enable the economy to achieve a long-term financial balance. Therefore, the Saudi Arabia’s 2017 budget has incorporated tough measures which will facilitate a balanced growth of the economy. One of the measures taken is to levy a dependent fee on expats living in the Kingdom. The budget 2017 is very comprehensive, nevertheless, new features have become difficult to be understood. The expats are facing a lot of confusion related to the Dependent fees. This is a new concept, never observed before in the Kingdom. Therefore, people are curious and confused about the new fee announced in the budget for the fiscal year 2017. Is New Dependent Fee applicable on less than 18 Years old dependents? Recommended: New Dependent’s Fee in Saudi Arabia? How to avoid it for the year 2017?
So here you will be entertained with the details of dependent fees and hopefully, your confusions will be cleared. The dependent fee will be introduced into the economic system from July 2017. The Jawazat shall collect this fee with the Iqama renewal. So, from July onwards, the expats must pay SR 1200 per dependent at the time of Iqama Renewal. If you have two dependents, you must pay SR 2,400 per annum. Many people have confusion and they believe that the fee will not be levied to dependents of expatriates who are less than 18 years old. They believe that the fee is only applicable to those dependents who are more than 18 years old. Many people think that dependent is not defined by Saudi Authorities so it is too early to say anything in this regard. Recommended: Who will pay the newly imposed dependent’s fee as per Law? Employer?
We consider it our responsibility to enlighten our readers about this subject. In our opinion, dependent is someone who has been considered as dependent by the Ministry of Interior. If you login to your MOI account, you will find all your children and your wife under the dependents category. If you have your parents living in Saudi Arabia under your sponsorship, you will find them as Sponsorees in your account.
Don’t get confused that if they are less than 18 years of age or more than 18 years, you are not exempted from paying the dependent fees. One should also know that Iqama of a child expires after he crosses the age of 18. It means that Iqama cannot be renewed after a child becomes more than 18 years old: it can be if he/she is a student or in a case of any other genuine reason. But if iqama is renewed on basis of studies, it shall expire when the child turns 25. Recommended: Procedure to get Iqama for Dependents after 18 Years
The dependents fee shall increase to SR 2,400 per dependents from July 2018, SR 3,600 per dependent from July 2019 and SR 4,800 per dependent from July 2020. This is one of the reasons many expatriates are sending their families back to their home. It will also increase the foreign remittance from Saudi Arabia.
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