Company Maintenance Requirements

On-going Requirements for Employees in Saudi Arabia

Qiwa

Registering all company employees with Qiwa portal is essential for on-going requirements with managing your workforce. This includes employee requirements such as;

Employee contracts - contract issuance, management and updates
Nitaqat (quota) and issuing employee visas
Employee Transfers (change in job will require an Iqama transfer)
Saudi Labour system management

Saudization and GOSI contributions

The General Organization for Social Insurance (GOSI) is a government entity that oversees Saudi Arabia's social insurance including pensions, end of service benefits KSA, obtaining GOSI salary certificate for personal or banking requirements, and unemployment matters. GOSI registration is required for the company and all its employees.

It is a requirement for companies in Saudi Arabia to make GOSI contributions for both their expat and Saudi national employees. The GOSI calculation is based on a percentage of the employee's salary.

GOSI Calculation in Saudi Arabia:

Deductions paid by the employer total 11.75% for their KSA National employees and 2% for their expat employees.

9% GOSI (only for Saudi nationals)
0.75% SANED (only for Saudi nationals)
2% Occupational Hazards (Saudi nationals and expats)

Mudad KSA

The company and its employees will need to complete Mudad registration to align with Mudad compliance requirements.

What is Mudad in Saudi Arabia?

Mudad KSA is an electronic portal developed by the Ministry of Human Resource and Social Development. Mudad is used for salary transfers and payroll and to allow the Ministry to monitor company's correct and timely payment of employees' salaries in Saudi Arabia. Mudad KSA is the Wage Protection System (WPS) known more widely in other parts of the GCC.

Saudi Iqama Renewals

A Saudi Iqama (residency card) is valid for 1 year and will need to be renewed yearly. This will require all non-GCC National employees to obtain an exit/re-entry visa. This means all who hold Iqama in Saudi Arabia will need to travel outside of Saudi Arabia and re-enter to validate their new Iqama (residency card).

Licence Renewals and Accounting Requirements

Yearly Licence Renewals

All company licensing and registrations are required to be renewed yearly.

Ministry of Investments Saudi Arabia (Misa KSA) – Foreign companies in Saudi Arabia is required to renew its MISA Licence (Trade Licence) every year.

Commercial Registration with the Ministry of Commerce

Chamber of Commerce

Accounting & Bookkeeping Requirements

The VAT rate in Saudi Arabia is at a rate of 15%. It is a requirement for all companies to file VAT quarterly.

Corporate Tax in Saudi Arabia is at a rate of 20% for non-GCC companies and is required to be filed quarterly. There are some case whereby a Saudi or GCC National shareholders would pay 2.5% of their shares while non-GCC shareholders shares are subject to 20% CIT.

Zakat is an Islamic alms tax imposed on Saudi or GCC Nationals at a rate of 2.5% of the company’s net profit. It is classified as charity money and is imposed in place of corporate income tax which Saudi and GCC Nationals are not subject to.

How can PPG assist?

PRO Partner Group’s team in Saudi Arabia can assist with all business set up in Saudi Arabia and all company maintenance and business support services including VAT filing KSA, Mudad registration, Mudad compliance requirements, MISA Saudi license renewals, GOSI registration and obtaining GOSI salary certificate and further accounting and bookkeeping requirements for Zakat and corporate tax.