Iqama (residence permit)
In one sentenceAn identity document carried by a non-Saudi resident in the Kingdom that proves legal residence, is linked to the employer, and is renewed for a fee before it expires.
Simply put
The iqama is the non-Saudi employee's identity document. The business tracks its expiry date and renews it beforehand, because an expired iqama blocks services such as travel and opening accounts.
For the accountant: the annual iqama fees are part of the employee's cost. Enter them in the employee cost calculator from Absher, and spread them over the months of the year as a prepaid expense.
Example
An auto parts store renews its employees' iqamas in different months. The accountant prepared a schedule of expiry dates with a reminder a month before each, and charged each iqama's fees over the months of its year.
Don't confuse it with
Work permitThe iqama is for legal residence, while the work permit is for working for a specific business.