Looking to hire in Saudi Arabia

All expenses must be reviewed and approved by the employee's manager. Documentation requirements vary by expense type, and expenses submitted without the required supporting documents may be rejected.

Phone, internet, and coworking costs can be reimbursed tax-free when they are business-related. For each of these, employees should provide a tax invoice, receipt, or bank statement with transaction details up to 1,000 SAR, showing when and where the service was purchased, the amount and currency, the service provider or merchant, a brief description, and any VAT charged in Saudi Arabia.

Laptops, office equipment and supplies, postal charges, and software subscriptions are reimbursed on a non taxable basis when properly documented. Invoices or receipts must show the date, amount, currency, merchant or service provider, a short description of the item or service, and any applicable VAT in Saudi Arabia; laptops also require the model number and brand, and some items may be supported by a bank statement with transaction details up to 1,000 SAR or other evidence of payment.

Business travel expenses such as insurance, visas, accommodation, transport, car rental, fuel, mileage, and parking or tolls are reimbursed as non taxable when supported by the required documents. Most items require a tax invoice or receipt, often with a bank statement and transaction details up to 1,000 SAR, showing the date, amount, currency, merchant, a description, and any VAT in Saudi Arabia; some also require the employee’s name or email, and flight claims may use a booking confirmation with evidence of payment. Mileage does not require documentation and is reimbursed as a non taxable amount of 3.6 SAR per km.

Everyday meals, groceries, and business meals with clients or partners can be reimbursed as non taxable when supported by a tax invoice, receipt, or bank statement with transaction details up to 1,000 SAR. Documentation must show the date, amount, currency, merchant, and any VAT in Saudi Arabia. Alcohol purchases are not permitted in Saudi Arabia, and alcohol expenses incurred outside the country may be reviewed individually.

A range of other business-related costs, including training, courses and books, promotional items, gifts, gym memberships, medical and life insurance, wellness, and medical costs, may be reimbursed. Mandatory courses, training, or certifications required as part of an employee's job are non taxable, and other listed items are also treated as non taxable when supported by a tax invoice or receipt showing the date, amount, currency, merchant, a brief description, any required employee details, and any VAT charged in Saudi Arabia.

Employers in Saudi Arabia may offer a per diem of USD 100 per day for employees on business trips to cover incidental travel expenses. Employees should refer to their employment contract for the specific per diem policy that applies to them.

Bonuses, including contractual and discretionary payments, incentive payments, and commissions, may be paid in addition to salary. There is no income tax on these bonus payments in Saudi Arabia.