The skyline of Riyadh, Saudi Arabia, in January 2020. EPA
The skyline of Riyadh, Saudi Arabia, in January 2020. EPA
The skyline of Riyadh, Saudi Arabia, in January 2020. EPA
The skyline of Riyadh, Saudi Arabia, in January 2020. EPA

MENA

Saudi government sets a fixed recruitment fee for domestic workers

More than one million Filipinos live and work in Saudi Arabia

Mariam Nihal

November 06, 2022

  • English
  • Arabic

Saudi Arabia's Ministry of Human Resources and Social Development has announced a maximum recruiting fee for a Filipino domestic worker of SR10,752.50 ($2,861) yearly.

The ministry has directed recruitment companies not to deviate from the cost set by the ministry.

The kingdom said it will start recruitment from the Philippines next week, from November 7, and residents in Saudi Arabia can now apply for a domestic worker visa from the Philippines on its Musaned portal.

The new service takes less time than before, up to a maximum of 90 days. Musaned also allows residents to bring in a domestic worker at a lower cost, the ministry said.

Last year the Ministry of Labour of the Philippines suspended the recruitment of domestic workers destined for Saudi Arabia.

Starting this year, the Saudi government will cover the insurance cost for skilled workers while Saudi employers are mandated to pay for the insurance coverage of Filipino domestic workers, according to Susan Ople, the Department of Migrant Workers secretary.

Workers will return to the kingdom under a new employment contract that ensures increased workers' protection.

“Our workers would now be able to find gainful employment in one of the world’s biggest labour markets. On Monday, our overseas labour offices in Riyadh, Jeddah, and Alkhobar will resume accepting offers of employment for Filipino migrant workers of all skills who wish to work in the Kingdom of Saudi Arabia,” she said.

More than 1 million migrant workers from the Philippines currently reside in the kingdom.

Kat Wightman's tips on how to create zones in large spaces

 

  • Area carpets or rugs are the easiest way to segregate spaces while also unifying them.
  • Lighting can help define areas. Try pendant lighting over dining tables, and side and floor lamps in living areas.
  • Keep the colour palette the same in a room, but combine different tones and textures in different zone. A common accent colour dotted throughout the space brings it together.
  • Don’t be afraid to use furniture to break up the space. For example, if you have a sofa placed in the middle of the room, a console unit behind it will give good punctuation.
  • Use a considered collection of prints and artworks that work together to form a cohesive journey.
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

if you go

The flights
Fly direct to Kutaisi with Flydubai from Dh925 return, including taxes. The flight takes 3.5 hours. From there, Svaneti is a four-hour drive. The driving time from Tbilisi is eight hours.
The trip
The cost of the Svaneti trip is US$2,000 (Dh7,345) for 10 days, including food, guiding, accommodation and transfers from and to ­Tbilisi or Kutaisi. This summer the TCT is also offering a 5-day hike in Armenia for $1,200 (Dh4,407) per person. For further information, visit www.transcaucasiantrail.org/en/hike/

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KILLING OF QASSEM SULEIMANI
Updated: November 06, 2022, 2:43 PM
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