The Cabinet announced today, Tuesday, a decision to extend the period of exemption for small businesses, allowing them to continue operating without financial obligations for an additional three years. This decision comes within the context of government efforts aimed at supporting the small and medium-sized enterprise (SME) sector, enhancing its role in promoting economic growth, and providing employment opportunities.
The Ministry of Human Resources and Social Development clarifies the conditions and regulations that must be followed to effectively implement this decision in an organized manner, aiming to ensure eligible businesses benefit according to defined criteria. Here are the key conditions to consider:
Small Workforce Size: The total number of employees in the establishment must be nine individuals or less, including the owner.
Registration with Social Insurance: Establishment owners must be registered with social insurance, and this registration must be current and updated to qualify for financial exemption.
Conditions for Exemption Regarding Expatriate Workers:
1- Exemption of "2" expatriate workers if the establishment owner is fully dedicated to working in the business and registered with social insurance.
2- Exemption of "4" expatriate workers if the establishment owner is fully dedicated to working in the business and registered with social insurance, provided that at least one of the expatriate workers is of Saudi nationality, fully dedicated to working in the establishment, and registered with social insurance.
3- The maximum exemption limit for expatriate workers is set at "4" individuals.
These conditions aim to achieve the intended goal of the decision, which is to support and empower small businesses and ensure their continuity in the job market. They also reflect the government's direction towards enhancing investment in small and medium-sized sectors, providing a conducive environment for their sustainable growth and development amidst current economic challenges.
February 21, 2024
- BY Mohamed Abdulaziz