The last and third year of the Expat levy exemption for small businesses begins.

The last and third years of small businesses being exempt from paying the monthly expat levy have begun. Small businesses will be excluded from paying the expat fee for three years, from April 2020 to March 2023, according to the accepted decision.

According to the decision, labor fees from work permits worth 800 riyals per month or 9,600 riyals annually would be cut to just 100 riyals, which will be implemented online through the Ministry of Human Resources and Social Development’s e-portal.

Workers in small businesses with nine or fewer employees will be excluded from fees if the employer works full-time, and the number of exempted workers will be increased to four when another Saudi citizen is hired, according to the decision.

According to a survey, there are around 576,312 businesses with nine or less employees. The Ministry’s decision aimed to give companies and employers more flexibility in regulating their contractual relationships with overseas workers.

The Human Resources Ministry wants to improve the administration of cash flows with private-sector enterprises and enable for payment timing.