Canadian Hire - Residency or Non-Residency?

sleepycanuck
Newbie

Posts: 6

Canadian Hire - Residency or Non-Residency? Oct 11, 2013 11:13:12 GMT

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Post by sleepycanuck on Oct 11, 2013 11:13:12 GMT

Hi,

I've just been offered a position but am confused about Canadian Residency for tax purposes. If I decide to leave my wife and kids in Canada while I work for Aramco, than there is no way I can become non-resident (as per the definition of non-resident by CRA...wife/kids would disqualify me).

So if I have to submit my worldwide income to CRA as a Canadian resident, here are my questions (I've searched the forum and haven't found the answers to these questions...it seems every Canadian I have found has gone non-resident so those who are still resident, please advise...thanks in advance!) :

1) is base salary enough to declare to CRA or must I submit the "tax protected expatriate premium" and/or the COLA and/or Variable Salary and/or Cash in Lieu of Benefits and/or patriaton/repatriation as well?

2) is the housing and/or flights and/or educational allowance considered worldwide income and must also be reported to CRA as such?

3) which of the following are considered local (i.e. Saudi Aramco...Saudi Arabia provided) benefits/income and which are considered Canadian (or U.S. based):
a. base salary
b. expatriate premium
c. COLA (cost of living allowance)
d. variable salary
e. cash in lieu
f. patriation/re-patriation
g. housing
h. flights
i. educational allowance
j. end of service gratuity

Thanks in advance for all your help.
SC

yegoiler Member Posts: 16	Canadian Hire - Residency or Non-Residency? Nov 23, 2013 5:59:09 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by yegoiler on Nov 23, 2013 5:59:09 GMT Hi sleepycanuck, Did anyone reply to your post. I too would like to know the answer to your questions Thanks

Tremblent Members Posts: 36	Canadian Hire - Residency or Non-Residency? Nov 23, 2013 10:59:50 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by Tremblent on Nov 23, 2013 10:59:50 GMT If you are hired after mid October, you will be offered Global Payroll and not the Canadian Payroll. Global Payroll, company re-imburses actual tax paid in Canada. So no need to worry anymore on these issue.

Ram723
Advanced Member

Posts: 69

Canadian Hire - Residency or Non-Residency? Nov 24, 2013 7:18:53 GMT

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Post by Ram723 on Nov 24, 2013 7:18:53 GMT

The company reimburses actual taxes to Canada? Really? Is this only for Canadian citizens (rather than non-citizens who have worked in Canada) and is it only regarding the money earned in KSA rather than the money earned in Canada?

Thank you ~

azraeil
Guest

Canadian Hire - Residency or Non-Residency? Nov 24, 2013 12:39:06 GMT

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Post by azraeil on Nov 24, 2013 12:39:06 GMT

Ram723 wrote
The company reimburses actual taxes to Canada? Really? Is this only for Canadian citizens (rather than non-citizens who have worked in Canada) and is it only regarding the money earned in KSA rather than the money earned in Canada?

Thank you ~

Global Payroll enrollment will be based on nationality. Permanent resident from Canada for example will not be eligible unless they are Citizens of Canada.

Pat1703 Member Posts: 35	Canadian Hire - Residency or Non-Residency? Nov 25, 2013 4:05:16 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by Pat1703 on Nov 25, 2013 4:05:16 GMT Guys I'm wondering if an offer accepted early in October can be revisited and switched from Canadian payroll to the Global payroll.

Ram723 Advanced Member Posts: 69	Canadian Hire - Residency or Non-Residency? Nov 25, 2013 6:21:59 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by Ram723 on Nov 25, 2013 6:21:59 GMT Thank you -
	Last Edit: Dec 3, 2013 8:23:15 GMT by Ram723

hmz
Member

Posts: 17

Canadian Hire - Residency or Non-Residency? Nov 25, 2013 19:45:29 GMT

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Post by hmz on Nov 25, 2013 19:45:29 GMT

Pat1703,

I was told that those offered a position before Global payroll came into effect will most probably be given an option of either staying with the current one or choosing the global payroll once we join. We can weigh in the benefits and decide. As I understand people who are already working also have the option of switching to the global payroll.

Is it confirmed that Aramco will pay the taxes owed to Canadian govt if we don't claim the non resident status.

Tremblent
Members

Posts: 36

Canadian Hire - Residency or Non-Residency? Nov 26, 2013 2:40:06 GMT

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Post by Tremblent on Nov 26, 2013 2:40:06 GMT

As I understand from recent town hall meetings, Aramco will reimburse the actual tax paid (requires proof of payment to CRA) only for the married bachelor status employees and not for the family status employee living in the kingdom with thier families.

azraeil
Guest

Canadian Hire - Residency or Non-Residency? Nov 26, 2013 8:01:26 GMT

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Post by azraeil on Nov 26, 2013 8:01:26 GMT

Tax reimbursement will only be for Bachelor Status employee (where their Family stays in Canada). Family status are not eligible.

Starting Mid-october, if your country of citizenship (not permanent residents) is in Canada/Western Europe/North Asia (Japan, Korea, Taiwan) and Singapore, new offers will be on Global Payroll Tier 1 status. If your country of citizenship (not permanent residents) is in the South/Latin America or Eastern Europe, new offers will be on Global Payroll Tier 2 status. For any other citizens who are classified as core-skilled staffs (Geoscience, Petroleum Engineering, Drilling & R&D), new offers will be on Global Payroll Tier 3 status.

aussie hopeful Advanced Member Posts: 58	Canadian Hire - Residency or Non-Residency? Nov 26, 2013 10:07:22 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by aussie hopeful on Nov 26, 2013 10:07:22 GMT azraeil, Which teir covers Australia, and what is the difference

azraeil
Guest

Canadian Hire - Residency or Non-Residency? Nov 26, 2013 17:10:46 GMT

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Post by azraeil on Nov 26, 2013 17:10:46 GMT

My apologies, I left something out about Australia and New Zealand. Citizens (not permanent residents) will be on Global Payroll Tier 1 status.

As for the difference ... well ...... I'm sure you can figure it out based the caste system.

bsr2go Member Posts: 13	Canadian Hire - Residency or Non-Residency? Nov 26, 2013 19:35:07 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by bsr2go on Nov 26, 2013 19:35:07 GMT Will Aramco reimburse Income tax only for country for citizenship or may also consider Permanent Residency.?

Tremblent
Members

Posts: 36

Canadian Hire - Residency or Non-Residency? Nov 27, 2013 2:57:57 GMT

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Post by Tremblent on Nov 27, 2013 2:57:57 GMT

Aramco reimburses the tax only for the employee country of citizenship on which the payroll will be based on.
There are cases Employees Spouse have different nationality and or dual citizenship but Aramco will consider Employee country of Citizenship for tax reimbursement.

Sydney
Member

Posts: 21

Canadian Hire - Residency or Non-Residency? Nov 28, 2013 17:53:37 GMT

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Post by Sydney on Nov 28, 2013 17:53:37 GMT

Hi

Could anyone please advise as to which steps to take to declare one's status as non-resident for CRA tax purposes. Also do Canadians need to get a certificate of some kind from CRA that they are non-resident? Any suggestions are highly appreciated. Thanks in advance.

Canadian Hire - Residency or Non-Residency?

Post by sleepycanuck on Oct 11, 2013 11:13:12 GMT

Post by yegoiler on Nov 23, 2013 5:59:09 GMT

Post by Tremblent on Nov 23, 2013 10:59:50 GMT

Post by Ram723 on Nov 24, 2013 7:18:53 GMT

Post by azraeil on Nov 24, 2013 12:39:06 GMT

Post by Pat1703 on Nov 25, 2013 4:05:16 GMT

Post by Ram723 on Nov 25, 2013 6:21:59 GMT

Post by hmz on Nov 25, 2013 19:45:29 GMT

Post by Tremblent on Nov 26, 2013 2:40:06 GMT

Post by azraeil on Nov 26, 2013 8:01:26 GMT

Post by aussie hopeful on Nov 26, 2013 10:07:22 GMT

Post by azraeil on Nov 26, 2013 17:10:46 GMT

Post by bsr2go on Nov 26, 2013 19:35:07 GMT

Post by Tremblent on Nov 27, 2013 2:57:57 GMT

Post by Sydney on Nov 28, 2013 17:53:37 GMT