Kafala System
نظام الكفالة
📖 Definition
Kafala (Sponsorship) system ties a foreign worker's legal status to their employer (sponsor) in Saudi Arabia. Recent reforms have loosened restrictions, allowing workers more mobility between employers.
In everyday Saudi accounting work, kafala system matters because it affects invoice accuracy, financial reporting, tax filing, or ZATCA compliance depending on the transaction.
📖 التعريف بالعربية
نظام الكفالة يربط الوضع القانوني للعامل الأجنبي بصاحب العمل (الكفيل) في السعودية. الإصلاحات الأخيرة خففت القيود وسمحت للعمال بمزيد من التنقل بين أصحاب العمل.
💡 Example
Under reformed kafala rules, employees can transfer to a new employer after completing one year without needing the current sponsor's approval.
بموجب قواعد الكفالة المُصلحة، يمكن للموظفين الانتقال لصاحب عمل جديد بعد إكمال سنة بدون الحاجة لموافقة الكفيل الحالي.
When this term matters
Invoices
Use the correct term and value before issuing ZATCA-compliant invoices or credit notes.
Reports
Map it to the right account, tax field, or compliance report to avoid reconciliation gaps.
Compliance
Keep the Arabic and English meaning aligned when working with auditors, ZATCA, or customers.
Automate Kafala System with Qeemah
Qeemah accounting software handles kafala system automatically, ensuring ZATCA compliance and reducing manual work.