In Saudi Arabia, there are no individual income taxes imposed on residents. However, there are certain social insurance contributions that both employers and employees are required to make. Here is a breakdown of the applicable taxes or contributions:
1. Social Insurance Contributions
- Social insurance in Saudi Arabia consists of two main components: the General Organization for Social Insurance (GOSI) and the Human Resources Development Fund (HRDF).
- GOSI: Employers contribute 9% of an employee's monthly gross salary to GOSI, while employees contribute 11%.
- HRDF: Employers are required to contribute an additional 2% of an employee's monthly gross salary to the HRDF.
2. Value Added Tax (VAT)
- In Saudi Arabia, a 5% VAT is applicable on the supply of goods and services, including imports. This tax is generally borne by the end consumer.
It's important to note that these are the main taxes or contributions applicable to employment in Saudi Arabia. The percentages mentioned above are subject to change based on government regulations, so it's advisable to consult with a tax advisor or HR professional for the most up-to-date information specific to your situation.