Big Relief for Industries: No Levy on Foreign Workers Under Saudi Vision 2030
Industries in KSA can now save significantly, thanks to the latest workforce reform. The Saudi Arabia Vision 2030 has its own surprises for the industries.
No levy on foreign workers is the latest and most anticipated reform that will benefit your business planning. This blog explains everything you need to know about foreign workers’ levy exemptions.
Saudi Vision 2030: Major Workforce Reforms
The goal of workforce reforms under Saudi Vision 2030 is to create a sustainable, efficient, and skilled labour market for the future. Workforce laws in Saudi Arabia have been updated to meet international business and labour practices. Vision 2030 plays a major role in revolutionising the Saudi economy.
Workforce reforms are implemented to attract talent and improve employment conditions. Incentives and policy changes make business operations easier, cost-effective, and growth-friendly.
Cabinet Decision: No Levy on Foreign Workers in Saudi Arabia (Mukabil Maly)
Eligible industrial establishments have something to be hugely relieved about. The Saudi cabinet has approved a full exemption on the foreign worker levy, significantly reducing the work permit fees. Worth celebrating, the new cabinet decision eliminates recurring levy payments previously charged to expatriate employees, helping industries redirect their funds toward expansion, technology, and workforce development.
How Licensed Industries Benefit From This Decision
Saudi Vision 2030 industrial work permits support long-term industrial growth. More than 8500 Industries with a valid industrial licence issued by the Ministry of Industry and Mineral Resources directly benefit from this, with no levy on foreign workers. By removing the levy burden, Vision 2030 has reduced the recurring workforce expenses for industries. Lower employment costs and structured exemptions attract foreign investment to the Kingdom. So, no more uncertainties related to temporary or yearly fee exemptions.
How This Reform Benefits Business Setup in Saudi Arabia
Saudi Vision 2030 supports economic diversification, job creation, and private sector growth. Let’s explore how no levy on foreign workers benefits company formation in KSA.
- Levy exemptions have increased the Kingdom’s appeal to potential foreign investors, supporting long-term business setup in Saudi Arabia.
- More cost-effective operations through lowering recurring employment expenses.
- Offers stronger support for industrial growth with direct financial relief.
- No more added burden for businesses on hiring and retaining skilled foreign talent.
- Faster business expansion through utilising the reduced costs for scaling operations, technology, and infrastructure.
- Lower entry barriers help startups and SMEs flourish in KSA, leading to economic diversification.
- Businesses can plan with confidence and stay compliant through clear exemption rules.
Work Permit Fee Exemptions in KSA: Who Else Is Eligible?
Here are the different cases in which exemptions are granted from work permit fees:
Small Establishments With Limited Employees
The total number of employees in the establishment, including Saudi and non-Saudi employees, is nine or fewer. The employer shouldn’t be registered with GOSI at any other establishment and should work full-time here.
Establishments Employing Saudi Nationals
At least one Saudi employee should work full-time, and the person shouldn’t be the owner. The employee needs to be registered with GOSI.
Additional Exemptions for Micro and Small Businesses
Though the exemption conditions vary depending on compliance and labour classification, certain small businesses receive a limited exemption based on workforce size and structure.
Ministry-Approved Special Cases
Exemptions are granted through government initiatives or sector-specific incentives. These are reviewed and approved by the relevant authorities on a case-by-case basis.
How Accurate Accountings Supports Businesses With Saudi Vision 2030 Reforms
Accurate Accountings offers expert guidance and support to help businesses comply with workforce, tax, and regulatory reforms. We ensure every application, including foreign worker levy exemptions, is prepared and drafted correctly. Vision 2030 initiatives offer huge benefits for new company formation. At Accurate, we provide complete support for your business setup in Saudi Arabia.
Our professional team keeps our clients informed about policy changes, cabinet decisions, and labour reforms that impact business operations. Our service to the Saudi business ensures long-term sustainability through offering continuous accounting, compliance, and advisory services.
Conclusion
For licensed industries in Saudi Arabia, the no-levy on foreign workers is a big decision made by the cabinet. Industries can now utilise the cost savings to implement important strategies. Saudi Vision 2030 comes with various work permit fee exemptions, including no levy on foreign workers. Accurate Accounting offers long-term partnerships for Saudi businesses, making their operations hassle-free.
Ready to benefit from Saudi Vision 2030 workforce reforms? Contact Accurate Accountings today to navigate work permit exemptions and regulatory compliance.
Ready to start your business in KSA?