RIYADH: Senior bankers clarified on Sunday that money sent home by expatriate workers will not be taxed under the value-added tax (VAT) reform initiative to be launched by the Saudi government on Jan. 1 next year.
It was also announced that companies and businesses have only three days left to register and obtain their dedicated VAT account numbers.
Saudi Arabia’s General Authority for Zakat and Income Tax (GAZT) has urged businesses with annual revenues of more than SR1 million ($266,640) to register for VAT before the deadline of Dec. 20, 2017.
“The deadlines for companies with annual revenues between SR1 million and SR375,000, however, has been extended by a year until Dec. 20, 2018,” according to a GAZT statement.
“All businesses including commercial organizations and banks have been advised to make sure they understand the VAT rules and be ready for their implementation after 15 days from now,” said Syed Ahmed Ziauddin, a senior banker who heads the financial institutions and public sector group at Bank Al-Jazirah in Riyadh.
He said: “Aljazirah Bank is fully ready to start from Jan. 1 ... and we are going to apply VAT on our service charges.”
He said that all commercial banks have geared themselves to comply with the VAT regulations. “The banks have also educated their customers about VAT besides advising them about various services that will come under the purview of VAT,” said Ziauddin, while adding that the remittances will not be taxed under the VAT system.
“Money remittance outflows will be exempted,” said Abdullah Ali Nasser Alfuraiji, chief of the Tahweel Al-Rajhi in Riyadh. Alfuraiji made it clear that “the 5 percent VAT tax would be levied on the remittance service fees, rather than the remittances themselves.
He emphasized that “Tahweel will be charging 5 percent of SR18, which we charge as remittance fee for sending funds to India. Hence, the rise will be nominal with customers required to pay 9 halalas extra for remitting money to India.”
The Tahweel chief added that this will be negligible, but will differ from country to country.
Referring to the implementation of the VAT and the levies imposed on remittances, Ahmed Mohammed Al Enazi, general manager of Enjaz Banking Services, the remittance arm of Bank Albilad, said: “There will not be any impact on remittances.” He also confirmed that “5 percent VAT will be imposed on service charges... say like 5 percent of SR16 in case of India and 5 percent of SR20 in case of Pakistan.”
“The 5 percent on banks’ service fees will be paid by the person sending money as per guidelines of the General Authority of Zakat and Tax (GAZT),” said Ahmed.
Banks and remittance centers in the Kingdom charge varying fees on remittances sent to different Asian and European countries.
The imposition of 5 percent VAT “on service charges, not on remittance amounts” was also confirmed by Anwar Ahmed Wajid Khajja, manager of products and partners at Fawri, the remittance wing of Bank Aljazirah in Riyadh.
Referring to the benefits of VAT especially those collected by banks and remittance centers, Cenon Nonie C. Sagadal Jr., marketing representative of Rizal Commercial Banking Corporation (RCBC) of the Philippines, said: “VAT is a welcome move with a slight increase in remittance fees, which will eventually benefit the remitters and the institutions.
“With the government meeting its financial goals as a result of VAT collection, more employment opportunities will be created not only for Saudis but also for expatriates within the framework of the Saudi Vision 2030.”
No VAT on expat remittances in Saudi Arabia, say bankers
No VAT on expat remittances in Saudi Arabia, say bankers
National program identifies 165 native plants for afforestation efforts in Asir
- The survey is part of broader plans focused on restoring degraded land, using native vegetation
JEDDAH: Saudi Arabia’s National Afforestation Program has identified more than 165 species of native plants suitable for afforestation in the Asir region, highlighting the ecological diversity of one of the Kingdom’s most environmentally varied areas, the Saudi Press Agency reported.
The findings form part of broader national efforts to expand vegetation cover, address land degradation, and support sustainability goals linked to the Saudi Green Initiative and Vision 2030.
According to the program, the identified species are distributed across a wide range of natural environments in Asir, including mountainous terrain, highlands, slopes, valleys, plains, rocky landscapes, and coastal areas stretching from the Red Sea to Tihama.
The species belong to numerous plant families, including Fabaceae, Anacardiaceae, Burseraceae, Capparaceae, Ebenaceae, Euphorbiaceae, Malvaceae, Myrtaceae, Oleaceae, and Primulaceae, among others.
Plants suitable for afforestation range from large and small trees to perennial and annual shrubs, herbs, succulents, bulbs, and climbing plants.
Among the most notable species identified are the grey mangrove, mastic tree, mooring or ben tree, juniper, sycamore fig, wild olive, henna, wild jasmine, hawthorn, and arak.
The Saudi Arabian Botanical Society described the announcement as an important step in protecting plant diversity and strengthening the ecosystem conservation in the Kingdom.
Munirah bin Hamad Al-Hazani, founder and president of the society, said that prioritizing native species is central to sustainable afforestation.
“Focusing on the cultivation of native plants adapted to diverse environments forms the cornerstone of sustainable afforestation projects, as it plays a pivotal role in enhancing vegetation cover, combating land degradation, and conserving natural and financial resources,” she told Arab News.
Al-Hazani added that long-term success depends on cooperation between government bodies and the nonprofit sector, alongside community involvement and environmental awareness programs.
The National Afforestation Program has increasingly emphasized community participation, working with government agencies, private companies, and nonprofit organizations to support planting initiatives and environmental education. Its approach includes promoting volunteerism and discouraging harmful environmental practices, while focusing on the use of native plants adapted to local conditions.
Parallel efforts are underway in other regions of the Kingdom to support vegetation restoration through research and infrastructure development. In Jouf, often referred to as the Kingdom’s food basket, the King Salman bin Abdulaziz Royal Reserve Development Authority has established a Central Nursery and a Wild Seeds Research and Production Station to address the growing demand for reliable sources of native seeds and seedlings.
The project was launched in 2023 under the directive of Prince Abdulaziz bin Saud bin Naif, the minister of interior and chairman of the authority’s board of directors.
Since then, the facilities has become a key component of vegetation restoration efforts within the reserve.
The authority has focused on building operational capacity by recruiting and training specialists to manage cultivation and research activities. The research and production station includes 14 mother-seed production fields containing over 400,000 trees and shrubs.
Planting began in late 2024, with more than 30 native plant species represented, selected for their role in the reserve’s natural ecosystem.
The facility also includes two seed storage units with a combined capacity of 3,000 kilograms. Seeds are collected annually from multiple sites within the reserve and used for seedling production habitat rehabilitation.
The Central Nursery spans 6,000 square meters and includes 30 greenhouses spanning 1,500 square meters, as well as two shade houses used during summer months. A plant hardening facility, designed to prepare seedlings for natural environmental conditions, covers 10,000 square meters and is divided into seven sections. The nursery’s annual production capacity reaches 1.5 million seedlings, representing more than 15 native plant species.
Together, these initiatives underscore the growing role of native plant research and propagation in Saudi Arabia’s afforestation strategy, particularly as the Kingdom works to balance environmental restoration with long-term sustainability goals.
