A migrant can work in Saudi Arabia with the use of Iqama or Saudi Business Visa. The main difference is, a business visit visa is issued when an expatriate comes to work in a short period of time, temporarily. Iqama on the other hand, is issued when someone enters Saudi Arabia for a long time of employment, say 2 years. The procedure for acquiring an Iqama is different from Business Visit Visa. While having a valid Iqama in the Kingdom entails resident benefits, Business Visa on the other hand has some disadvantages.
These are the 8 distinct disadvantages when you opt to have a business visa, instead of an Iqama while you are working in Saudi Arabia.
1. Tax on income in KSA
A person working on a business visit visa is not a resident of Saudi Arabia. According to the Saudi Tax Law, a rate of 20% must be deducted by a company from the salary of the non-resident workers.
2. Tax on Income in Native country
A person working in Saudi Arabia on a Business Visit Visa is a resident of his own country. In most countries, taxes are imposed on the income of the person out of the country. As a result, he will have to pay a double tax. Although tax credit is available in most of the countries but a higher tax rate will apply.
3. No Visa for the Family
If a person is working in Saudi Arabia under a Business Visit Visa, he can’t bring his family on family visit visa or permanent family visa.
4. No Bank Account
Only a resident of Saudi or an Iqama Holder is allowed to open a bank account in Saudi Arabia. If a person is working under a Business Visit Visa, he will receive his salary in cash or bank transfer to his own country.
No Iqama Itself – in Saudi, you need to possess an Iqama in order to do anything you want. Even hospitals will not allow you to be admitted if you have no valid Iqama. A person with Business Visit Visa will not be able to enjoy the benefits of Iqama.
6. Traveling in Saudi Arabia
A person working under a Business Visit Visa is allowed to travel to the areas where he is assigned to work. He is not allowed to travel to places that are not related to his work. While Iqama holders are allowed to travel to any part of Saudi Arabia.
7. No Employment Rights
Eployment rights are only entitled to persons who have an Iqama. The person who has a Business Visit Visa don’t have employment rights. If the Saudi company will not pay him, he would not be able to do anything.
8. No Restriction of Kafeel
The permission of Kafeel is required in order for you to do anything in Saudi Arabia. If the person is working under a Business Visit Visa, he can go out of KSA anytime he like.