If you ask any overseas Filipino worker (OFW) in the Kingdom of Saudi Arabia (KSA), they will readily tell you that one of the best perks of being employed there is that foreign workers are exempted from paying tax there.
This, however, may soon change with Saudi’s new tax plan, according to some rumors.
In a news report by Jasmin Romero of Bandila (ABS-CBN), OFWs are currently expressing great concerns about circulating hearsays regarding the possibility of a new foreign taxation policy to be implemented in the country. Allegedly, this is to address the government’s revenue following the low crude oil price crisis in the market.
According to the worried OFWs, this would directly mean that their remittances to their families will be affected.
Ezzedin Tago, Philippine Ambassador to Saudi Arabia, was quick to clarify about the controversial topic. He said that, as of the moment, imposing taxes “on their Saudi or foreign residents” isn’t set in stone yet. “Pag-aaralan pa lang yan,” Tago told Bandila. (“They will study the matter first.”)
If it ever pushes through, Tago also has an assurance for OFWs and their families:
“I don’t think there is such thing as 20 percent taxes dito sa Saudi. Ang pinag-uusapan ay 4 percent, hindi po 20 percent.”
(“I don’t think there is such a thing as 20 percent taxes here in Saudi. They’re talking about 4 percent, not 20 percent.”)
Meanwhile, Department of Labor and Employment (DOLE) Undersecretary Nicon F. Fameronag told OFWs that they would never have to worry about double taxation. If the kingdom does collect income tax from them, then that would be the only tax that they would have to pay.
You can watch the Bandila report here:
source : abscbn