Description

Saudi Arabia has a largely oil-based economy with 25% of the world’s proven petroleum reserves making it the biggest exporter of petroleum in the world. The petroleum sector accounts for roughly 45% of budget revenues, 55% of GDP, and 90% of export earnings. About 40% of GDP comes from the private sector. Roughly five and a half million foreign workers play an important role in the Saudi economy, largely in the oil and service sectors.

The government is encouraging private sector growth to lessen the kingdom's dependence on oil and increase employment opportunities for the swelling Saudi population. The government has begun to permit private sector and foreign investor participation in the power generation and telecom sectors. Riyadh in particular has been able to increase its spending on job training, education and infrastructure.

As a result international companies are increasingly looking at Saudi Arabia as a place to pitch their services. When providing services in Saudi they will either have to relocate their own staff or source international contractors. It is very difficult to start a company in Saudi Arabia as a foreign owned enterprise and as such if these companies wish to relocate their staff or source international contractors they will require a locally based Contractor Management Company to provide a full employed local solution for their employees.

This will entail Saudi Work Permits (Iqama) and local Saudi payroll. As an individual, working in Saudi Arabia can be a highly rewarding experience, an opportunity to experience living in the Middle East, high earning rates and paying zero income tax!

Our services in Saudi Arabia include:

Tax, Payroll and Employment Solutions for Clients and Individual Contractors

Sponsored Work Permits for Clients/Contractors/ Freelance Workers

Salary Packaging

Self-Employed / Pty Ltd Companies

Immigration Lawyers

Expatriate Tax specialists

Insurance (Private Health / Travel / Professional Indemnity)

Mortgages

Bank Account Opening

 

You can reach all our resources for Saudi Arabia from this page.

- Information on IMMIGRATION AND WORK PERMITS including Iqama.

- Information on TAXATION, EMPLOYMENT and PAYMENT

- A summary of all Saudi Services that we offer

- CASE STUDIES

- Employment information about Saudi Arabia

- Information about Saudi Arabia

- Links and Resources


Description

One of the most consistently challenging aspects of contracting in Saudi Arabia is complying with the country’s tax system. Whether you’re a contractor or a permanent employee, you have to pay tax on all of your earnings whilst you’re in the country. As well as paying tax in Saudi Arabia, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. Do you get double taxation in Saudi Arabia? It will depend on your nationality and the nature of your assignment in Saudi Arabia. Getting to grips with the basics of income tax in Saudi Arabia and understanding your options helps you work out the best way to organise your affairs.

Paying Income Tax in Saudi Arabia through Your Employer

If you’re working in Saudi Arabia under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Saudi Arabia for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Saudi Arabia, but contractors may not be offered this service because of their short stay with each employer.

Tax In Saudi Arabia

Working Out Income Tax in Saudi Arabia Yourself

Anybody who can’t pay their tax in Saudi Arabia through PAYE is left with the prospect of filing a tax return and doing everything themselves. Do you know much about Saudi Arabian Tax Law? Does Saudi Arabia have a tax treaty with your home country? You will need to find out or find someone who can help! Not only does this eat into your free time, it’s also exceptionally difficult to get the most out of the system. The rules change frequently, so if you’re new to it you may be working on out-dated research and end up paying too much. Income tax in Saudi Arabia can be anything from 0 to 20 percent, and you need to be sure you are placed in the correct tax brackets.

Using an Umbrella Company for Income Tax in Saudi Arabia

Contractors in Saudi Arabia are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Saudi Arabian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records). The companies are experts in Saudi Arabia taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Saudi Arabian tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax in Saudi Arabia

We work with numerous umbrella companies in Saudi Arabia, many of whom are experts in tax and immigration laws. If you have any questions about tax in Saudi Arabia, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We also have a comprehensive knowledge of the different services they provide, and we can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Saudi Arabia work permit. Our advice is 100 percent free, and it comes with no obligations. You will be paying taxes in Saudi Arabia but without the overhead of directly dealing with the Saudi Arabian tax authorities. Get in touch with us today for some reliable advice on tax in Saudi Arabia!

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Description

Immigration is one of the primary concerns for anybody hoping to start working in Saudi Arabia. Permanent employees will find it easy to get their Saudi Arabia work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer. The Saudi Arabian work permit is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Saudi Arabia is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue. 

Saudi Arabia Work Permits

What is a Saudi Arabian Umbrella Company?

Umbrella companies in Saudi Arabia “employ” contractors, but don’t make any decisions about your workload, clients or anything to do with your day to day operation. They simply process your payments by billing and collecting money from your clients, calculating your taxes and sending you a net wage. This is equivalent to the PAYE (pay as you earn) system employed by many companies, and it makes handling your tax in Saudi Arabia a lot simpler. The fact that they technically become your employer helps you get your working visa in Saudi Arabia with minimal fuss. 

How Can Umbrella Companies Help You Get a Saudi Arabia Work Permit?

As your permanent employer, umbrella companies are able to sponsor you for your Saudi Arabia work permit provided they’re on the register of approved sponsors. Many different companies offer this service, because it makes contracting in Saudi Arabia infinitely simpler and saves you the hassle of continuous paperwork. Instead of changing your work permit every time you get a new contract, you can just work how you ordinarily would under the same permit. They protect you from the bureaucratic “rain” of legal compliance with the Saudi Arabian immigration authorities. They can even deal with the Saudi Arabian Embassy directly. 

Through their service you may be able to use a business visa to get started quickly and then transition to a work visa in Saudi Arabia. It depends on your specific Saudi Arabia visa requirements. Be aware you may have to register for a residence permit in Saudi Arabia.

Can Umbrella Companies Also Assist You with Saudi Arabia Taxation?

Some umbrella companies are specialists in the Saudi Arabian tax system. They constantly stay up to date with the legislation and ensure that you get to keep the biggest proportion of your earnings possible. The PAYE system is ideal for most workers because you don’t have to complete any paperwork (aside from submitting your timesheets to the umbrella company) or worry about your taxes in any way (you’ll receive documentation for your records, though). You have a team of experts ensuring that you’re paid promptly and the various requirements for tax in Saudi Arabia are met. 

How We Help You with Contracting in Saudi Arabia

We work closely with numerous umbrella companies in Saudi Arabia and we have a thorough knowledge of the different services they provide - especially regarding immigration to Saudi Arabia. If you’re a business analyst, IT project manager, software developer, tester, telecommunications contractor or an oil and gas worker, we can help you get sponsorship for your work permit and keep more of your earnings by setting you up with an umbrella company. We’ll also answer any questions you have about Saudi Arabian visas or the country’s tax law, and we’ll contact the experts directly to guarantee 100 percent accurate advice. This all comes at no charge whatsoever to you and you’re not obligated to take on the services of any company. We’re just here to make your move as stress-free as possible. 

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Client comment

"Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter."

Prishen Pillay,Global DBA Operations Lead

Shell International Trading & Shipping