Thread regarding Saudi Aramco layoffs

How long before Aramco's Tax Treaty with the USA finally breaks?

For the Americans that remain ... fewer all the time ... this a relevant question. The company has already gutted the US Payroll Post Retiree Health Care. The vast majority of new hires now coming from outside the USA. While the Aramco school still has the US Curriculum, the students there are increasingly not American. Demand at the British School remains strong, but I hear that enrollment at Dhahran High School (US system) keeps slipping. The tax treaty could well go once Americans become a small enough expat minority. That would pretty much be the end for most US people. I am thinking it happens sometime in the next five years.

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Post ID: @OP+YdcOfF3

24 replies (most recent on top)

Saudis will figure that out when they’re the only ones left to screw over.

We’ll watch that from wayyyyyyy over here

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Post ID: @yzbd+YdcOfF3

Retirement benefits in Saudi Arabia are only defined while you’re working. They get re-defined after you earn them.

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Post ID: @xtca+YdcOfF3

If it shows up again check the shoes

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Post ID: @kckl+YdcOfF3

https://www.zerohedge.com/news/2019-04-01/450-million-da-vinci-painting-vanishes-thin-air

Oops. Where did I leave that painting?

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Post ID: @arvn+YdcOfF3

https://www.nytimes.com/2019/04/01/business/saudi-aramco-profit.html

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Post ID: @abtk+YdcOfF3

http://www.arabnews.com/node/936346/saudi-arabia

But now wait this article says there would be 450,000 more jobs for Saudis by 2020. They promised it.......so how come in 2019 there are fewer not more saudis working?

Guess it wasn’t a “defined benefit plan” so they could “gutt” it if they want to? Can’t blame them really. Why create jobs for “workers” who don’t do any work? Yachts and Jesus paintings are better investments.

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Post ID: @9wok+YdcOfF3

No worries here. Only an id--t would depend on saudis keeping their word or commitments.

Speaking of commitments we’re reading that a million workers left, only about 150 thousand saudis needed jobs, and saudi unemployment went up. The math says fewer jobs standing around watching foreigners work mean fewer saudis “working”. It’s almost 2020 - “vision 2020” said the opposite.

Not just Americans who can’t depend on Saudi promises is it? Why worry about us? We go home and back to work and we have medical, dental, vision, pension, 401k just like we did at Aramco. Told you a couple years ago - our outcome is exactly the same no matter where we live or who we work for.

You will be the only ones left to screw over. After the company is raided for the PIF then it will be your retirement not mine depending on the word of the same people who already raided the GOSI once. I’d worry about that not Americans who came, built, and left.

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Post ID: @9imj+YdcOfF3

Calm down guys, retiree health benefit is not a defined benefit meaning the company can "gutt" it if it so wished, so enjoy it while it lasts.

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Post ID: @9lqv+YdcOfF3

Pre-existing conditions are covered for everyone who enrolls in the window period LOL. That’s as “special” as the “treaty” that any company can set up for housing.

Aramco retirees got hosed - after they put their time in just like they did in 1987.

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Post ID: @8dic+YdcOfF3

Gutted is right. Funny how the company slid that in under the wire by saying that they were making benefits more "flexible". When you turn 65, see what kind of medicare supplement plan you can buy for the $$$ they give you and compare that to the coverage you had. That's when you will find out. When they said flexible, they were talking about your anus.

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Post ID: @8snd+YdcOfF3

“Terminating all group benefits and replacing them with $1756 a year” is gutted.

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Post ID: @8cin+YdcOfF3

Not true if you are referring to the Mercer deal, I got my letter last year, even before this, the 65+ were supposed to dip into Medicare first, pretty much the same now with the added benefit that we can divert some of the money to dental and vision which we never had before. Pre-existing conditions are still covered which was a big deal for us.

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Post ID: @8sce+YdcOfF3

You won’t after you turn 65. I believe they replaced it with a small monthly amount that you are supposed to use to shop med B plans. The existing retirees got their letters sometime last summer.

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Post ID: @8tkc+YdcOfF3

What do you mean "The company has already gutted the US Payroll Post Retiree Health Care", I recently did my 10/50 and retired, now I am enjoying one of the best retiree health care there is. Did I miss something?

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Post ID: @7keu+YdcOfF3

LOL - reworded: I don’t think anyone on this page was laid off but a lot of you seem to like to j--koff to the fantasy that we were.

You are correct: There was no moon landing, 9/11 was a hoax, and that journalist left by the back door.

If you say that enough times on enough twitter pages you can make 25 million dullards believe it. The rest of us hope you continue to believe you are dealing with layoff victims and not bored millionaires.

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Post ID: @7iti+YdcOfF3

There was no moon landing either?

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Post ID: @7dxc+YdcOfF3

I still don’t think anyone here was laid off.

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Post ID: @7hjf+YdcOfF3

Sounds like sour grapes conversation from someone who got done in ELP recently.

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Post ID: @6jwk+YdcOfF3

https://www.nolo.com/legal-encyclopedia/tax-rules-hiring-resident-property-managers.html

Apartment managers appear to have the Same Secret Arrangement with the IRS that Aramco has.

Deep State

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Post ID: @4vrb+YdcOfF3

good god already

https://www.law.cornell.edu/cfr/text/26/1.119-1

It’s set up under 26 CFR 1.119.1 (b) lodging

Any company in the US or abroad can meet the three tests for employer-provided lodging and have the lodging excluded from income, avoiding taxes on it.

Aramco does not have any “special arrangement” with the US or IRS.

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Post ID: @3epn+YdcOfF3

It is not a tax treaty exactly but Aramco does work with the IRS to mitigate the tax damage for benefits in kind. For example, the company provided housing on camp is treated differently than it could be.

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Post ID: @2iqv+YdcOfF3

Surely those new hires are bringing schools and medical facilities and recreation facilities like the Anericans did right? LOL

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Post ID: @2yhb+YdcOfF3

It is hearsay. There is no “tax treaty” between the United States and Saudi Arabia.

All US expats can take the foreign earned income tax credit and exempt a portion of their income from taxes.

All companies who house employers at their worksite “for the convenience of the company” get a tax credit on “housing as income”.

Aramco set it up to get the greatest advantage of the US tax code.

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Post ID: @1zqe+YdcOfF3

I only know this by hearsay but I was told that there was either a minimum number or minimum percentage of Americans required to maintain the IRS deal and I think it won’t even take five years to break that deal. Once it is broken, every American will be ushered out immediately. Other nationalities are just cheaper to keep and the company continually works to disincentive Americans to work there. Fair enough. It is their country and their company. Service companies are what keep Aramco operating. They could eliminate 90% of all employees and nobody would notice the difference.

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Post ID: @ctr+YdcOfF3

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