Saudi Arabia considers self-sponsorship scheme for expats

Commercial-cover ups have cost Saudi national economy billions of riyals in tax revenue

BE2C2 Report — For the first time Saudi Arabia is considering giving expatriates the opportunity to become self-sponsors.

Under a new proposal, the foreigners could register themselves as self-employed by paying an estimated tax rate of 20 per cent annually, meaning foreigners would no longer need a Saudi national to sponsor them.

Currently, Saudi nationals register businesses under their names and the expatriates run the business and pay a percentage to the nationals.

As a result, funds that would have gone to the state are being diverted to individuals.

The commercial cover-up phenomenon has cost the national economy billions of riyals, Saudi daily Al Eqtisadiya reported yesterday.

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