Family tax: Expats in Saudi to pay 100 riyals a month per dependent

Saudi Arabia has been the most popular destination for job seekers from the subcontinent, due to various reasons which include the country's 'no income tax' policy.

The Gulf kingdom boasts the most Indian passport holders, among world nations, with around 41 lakh working Indians and more than 400 Indian companies.  

However, most Indian expats in Saudi will find it a little difficult to sustain their families or 'dependents' - thanks to the introduction of family tax aka dependent fee from next month. The country will charge 100 Saudi riyals (approx. Rs 1,700) per month for each dependent staying with the family from July 1, according to a Times of India report.

“Saudi Arabia issues the family visa to people with a salary of 5,000 riyals (approx. Rs 86,000) per month. So, an Indian expat living in the country with his wife and two children would have to pay 300 riyals (approx. Rs 5,100) a month,” the report said.

And what is even more worrying is the fact that the fee has to be paid in advance. For instance, the aforementioned family would have to pay 3600 riyals (approx. Rs 62,000) in advance, if they are planning to stay for a year.

The report also claims that the dependent fee will go up by 100 riyals per dependent every year till 2020. This means that by 2020, an expat family will have to shell out 400 riyals (Rs 6,900) for each dependant every month. 

The dependent fee is seen as a move to boost Saudi's revenues amid financial crisis caused due to low oil prices.

• Saudi Arabia
• dependent fee
• Indian expats