LEVY EXEMPTION FOR MORE FIRMS IN SAUDI FROM JANUARY 2021- FIRMS WITH FEWER THAN FIVE EMPLOYEES ARE THRILLED

THE LEVY WAS ANNOUNCED IN SAUDI ARABIA, BEHIND INDUSTRIAL ESTABLISHMENTS AND MORE SECTORS. THE LEVY WILL BE EXEMPTED FOR SMALL ENTERPRISES FROM JANUARY 1 2021. THIS WAS ANNOUNCED BY THE MINISTRY OF LABOR AND SOCIAL DEVELOPMENT.

THE LEVY IS EXEMPTED FOR SMALL FIRMS WITH EMPLOYEES NOT EXCEEDING FIVE. FOUR SMALL FIRMS WITH NINE OR FEWER EMPLOYEES WILL BE ENTITLED TO A DISCOUNT. HOWEVER, IT IS CONDITIONAL THAT THE SAUDI WHO IS THE OWNER OF THE ESTABLISHMENT SHOULD BE EMPLOYED AS A FULL TIME EMPLOYEE IN THE SAME COMPANY. THE LEVY WAS PREVIOUSLY GRANTED TO SUCH INSTITUTIONS, BUT WAS CLOSED FIVE YEARS LATER.

EMPLOYEES OF RECRUITMENT FIRMS WHO TRANSFER DOMESTIC WORKERS ON A TEMPORARY BASIS WILL ALSO BE EXEMPTED FROM THE LEVY. IN ADDITION, GULF CITIZENS, INDIGENOUS WIVES, HUSBANDS, AND SAUDI-BORN CHILDREN OF FOREIGN NATIONALS ARE ELIGIBLE FOR THE LEVY. THE NEW CONCESSION WILL COME INTO EFFECT FROM JANUARY 1, SAID THE MINISTRY OF LABOR AND SOCIAL DEVELOPMENT.