General Information

New Remittance Fee on Transfer Between Local Banks

If you are a resident of Saudi Arabia state and also face the tax issues during money transferring like me then you must read the following news to counter all your queries about taxes and remittance fee from banks.

The Complaint of Account Holder

Account holders in Saudi Arabia have complained that fees are being charged for transferring money from one bank to another local bank – as this was not the case before while value added tax is also being collected.

According to the local sources, a local account holder inquired from Al-Rajhi Bank whether remittance fees have been charged in local banks.

What was the Query of Account Holder?

The account holder pointed out that he was asking this question because he had transferred money from his own account of Al-Rajhi Bank to the account of National Commercial Bank on which Al-Rajhi has deducted five riyals from his account. Why is that?

Exemption on remittances expires on September 22, 2020

Al-Rajhi Bank, in response to this query, said that,

Till September 22, 2020, there was an exemption from fees on remittances which has now been expired. Therefore, fees have been levied since then.

Another Complaint

An accountant named Umm Abdul Rahman found out in a message addressed to Al-Rajhi that she had transferred money from Al-Rajhi to a local bank and was charged for doing so. Why was this done?

Umm-e- Abdul Rahman also sent documentary evidence of her claim.

Reply of Al-Rajhi to Umm-e-Abdul Rahman

Al-Rajhi, in reply to Umm-e- Abdul Rahman’s query; said,

We apologize to you. In fact, the exemption on remittances has expired from September 22, 2020. The exemption on online remittances for local banks is no more.

The bank has set separate fees for different times

S.No. Days Timings Remittance Fee
1 Sunday to Thursday 9:00 am to 3:30 pm SR. 7/-
2 Sunday to Thursday 3:30 pm to 9:00 am SR. 5/-
3 Thursday to Sunday  from 9:00 am Morning SR. 5/-

Value Added tax is also fixed

Fifteen (15) percent value added tax is also fixed.

I hope after reading this news, you will find all the answers of your related questions. For more information, keep in touch with our website. Till then, Stay Safe. Stay Tuned.

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