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Post by Hnz on May 31, 2014 3:36:56 GMT
I need some help from folks who are on global payroll, which is different from us payroll.
Per which we have to buy our own benefits-I understand these are items up and above what aramco would provide.
Do people buy extended health care-if so who provides this?
Life Insurance-do they have any group rates for aramco or are they totally independent
AD&D-who are the providers?
Post retirement- health covee options.
I am struggling to undesrtand, ASC only knows US pay roll. I don't want to be in a situation where we may be making a wrong judgement.
May be too much to ask-we wanna make sure if we have to buy these insurances for which aramco has provided supplement, would we be really able to buy these benefits. Are we guranteed to be accepted by these providers.
If you can't help, can you connect me with someone who can help undesrtand this and preferably understand it from Canadian perspective.
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derekg
Senior Member
Posts: 107
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Post by derekg on May 31, 2014 12:02:15 GMT
Global payroll for Canadians is a unique scenario. It pays you in US dollars, which is generally a plus. It also provides two uplifts (expat premium and benefit supplement) and no tax deductions. You are on your own for any issues related to tax after your first year, but this is usually not an issue if you follow the guidelines from the Government of Canada. There is an end of service benefit, but your relocation adviser should be able to provide details on this rather than here because there are two options for this.
Where it gets more complex is the benefit side. While in the Kingdom of Saudi Arabia, you have full medical covee and there some supplemental insurance options (e.g. AD&D, LTD, etc.) which are dealt with in your first 90 days administratively, requiring forms. The downside is you have no health covee outside of the Kingdom of Saudi Arabia - this means in Bahrain or Qatar you have no covee! There are no group rates available for insurance; a few of us looked into this but the benefit was not strong enough. Travel insurance is not terribly expensive and there are many options for this depending on the duration and travel locations. For retirement health insurance, there is nothing provided. Canadian citizens are provided with health care upon repatriating through the national system; however, this has proven disturbing for those who have no intention of returning to Canada.
I would recommend naturalized Canadians keep abreast of legal changes in Canada since some of the proposed legislation may affect them and their access to government benefits should they reside outside of Canada.
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Post by O&GEngg on Jun 1, 2014 1:42:41 GMT
Thanks derekg! I was told by the person giving the orientation while the wife and I were down for visa medicals that the Aramco benefits covered you for medical while out of kingdom. It would be good if they were consistent with their message as I was under the impression (before attending this orientation) that we only had covee while in KSA.
Regarding the orientation - the one I had while down for an interview in February was MUCH better than this past one in mid-May. I asked some pretty pointed questions for the benefit of some of the interviewees. These were pretty much side-stepped by the person giving the orientation. It seemed like they had changed the content to only cover the roses-and-rainbows aspects of working in KSA.
Sorry for going off topic...
Another question for you derekg - would you mind giving a bit of advice regarding banking? I'm trying to figure out the best thing to do. Do I set up an international/off-shore account before leaving Canada? Set up bank accounts after I arrive? What do I do with my current bank account - close it before I leave and take a bank draft with me or leave it open until I arrive and wire-transfer my funds over? Please feel free to PM me if you like.
Thanks!!!
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Post by vpainter on Jun 1, 2014 9:11:56 GMT
The ladies who do orientation at ASC are from the U.S.and give U.S. answers. I know that is not helpful nor an excuse for the ignorance, but is the fact.
If ok with you two, O&GEngg and derekg, I will forward your question and responses to one of the orientation ladies. That may help future Canadians going to orientation at ASC.
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derekg
Senior Member
Posts: 107
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Post by derekg on Jun 1, 2014 12:22:41 GMT
vpainter
Feel free to forward anything here; I do my best to be consistent with the company policy. If there are differences I would be interested; the Global option to Canadians was an interesting one and a lot of questions. There were several changes to Canadian payroll over the past two years and the Global was a challenging decision for many, particularly naturalized Canadians with no intention of returning to Canada.
O&GEngg
vpainter is right about the orientation being focused on the US needs. The Canadian questions are different due to differences in taxation. For bank accounts, it is possible to keep a Canadian bank account without issue if you follow the steps of CRA to ensure you meet the non-resident requirements. If your accounts are with HSBC the switch can be a lot easier since they can transition to you offshore and/or private banking within their own system. Over in KSA you can open accounts easily enough and there are choices, all of which are pretty equal, although one bank had some major issues in the recent past. The best options tend to be NCB, SABB (HSBC affiliate), or Saudi Fransi; NCB has been on Aramco the longest and really caters to Aramcons well.
Opening offshore accounts can be challenging as each bank has different requirements. Unless you really need offshore banking, you may want to consider keeping Canadian banking for no reason other than maintaining credit cards for the near future; also, if you have any Canadian expenses or savings this can help maintain them too.
The most important step when leaving Canada is to really understand the steps for CRA to deem you non-resident. Failing to follow these can incur some serious tax liabilities!
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Post by Toronto2KHR on Jun 2, 2014 3:51:59 GMT
All valid questions being Canadian and I agree regarding the orientation.
I have a question regarding Canadian tax payment after first year of employment, during orientation we have been told that the first year taxes will be paid by Aramco. Is that correct? Does any one know if that's true? I am waiting for re-confirmation from my recruiter at this point. Thanks
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derekg
Senior Member
Posts: 107
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Post by derekg on Jun 2, 2014 11:24:01 GMT
Aramco does provide some tax protection in the first year, but there are some limitations to it. A great deal of onus is placed on the employee to take the right steps, but you are protected in your first (arrival) year. The best information will come from your recruiter. Always check with CRA regarding tax issues prior to leaving Canada as well. If you situation is complex, a Canadian tax adviser may also be a wise choice.
Note that tax protection does not mean they pay all taxes; it means they will protect you from taxes effective when you become an Aramco employee!
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Post by O&GEngg on Jun 4, 2014 14:31:33 GMT
While we are on the topic of non-residency from Canada...I read that getting rid of your Canadian drivers license is suggested by the CRA. How exactly does someone do that? Just don't renew it when it expires? Let's say I don't have a Canadian drivers license but I want to rent a car while on vacation during a repat...how does this work?
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cgyguy
Advanced Member
Posts: 90
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Post by cgyguy on Jun 4, 2014 16:44:31 GMT
O&GEngg,
I understand that you note in the NR73 form that you'll be applying for an international drivers license (which you should do anyways) and still keep yours. I have a friend that just came back to canada for business from Oman (where he has been living for 4 years) and he just renewed his license, I will receive the original and will courier to him (he wanted to have it for renting vehicle in Europe and NA.
Regards
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Post by O&GEngg on Jun 4, 2014 17:04:59 GMT
Thanks cgyguy...however I wasn't planning on filling out this form at the advice of my tax lawyer. I will definitely get my international drivers license before departing.
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cgyguy
Advanced Member
Posts: 90
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Post by cgyguy on Jun 5, 2014 4:54:36 GMT
O&GEngg,
What was recommended to me is to "fill" the form but NOT to file it with CRA.
Have it ready in case CRA asks for it in the future.
Regards
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Post by O&GEngg on Sept 1, 2014 6:32:50 GMT
Reviving this old thread:
What are Canadians doing about their bank accounts back in Canada once they've arrived here? My plan is to open two bank accounts over here: one here in KSA and another offshore or possibly in Bahrain.
I don't like the idea of having all of my money here in KSA and I would like to eventually close my Canadian accounts (tax reasons).
Any help would be greatly appreciated.
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Post by firefighter on Sept 2, 2014 4:48:11 GMT
To my knowledge, you may keep saving account here in Canada but not checking account. It all depends on your future plan too. If you want to comeback here, then it will be good to have some kind of account here. If you plan to retire and go other country, then it is good that you keep money in other country.
I think there are threads here on forum, which explains this issue. I am not there, I am watching this issue closely as I will be in your situation soon. Also will go and see an Expat accountant in Calgary soon.
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Post by O&GEngg on Sept 5, 2014 14:49:58 GMT
Ok here's what I've learned thus far.
- Most Canadians here have kept their own Canadian bank accounts but most are also planning on being here for the long haul anyways.
- If you want to set up an offshore account that you can do some investing with then you need to do it BEFORE you arrive here. As soon as you're considered a Saudi resident it becomes very difficult to open any sort of bank account other than a very basic savings (zero interest) account.
- HSBC and Barclay's both offer some very good options for offshore banking. I believe that Barclay's requires a certain dollar value to be deposited within 2 months of opening the account. Upwards of $50k I believe.
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Post by TimHortons2 on Sept 15, 2014 17:29:39 GMT
Sorry guys...I am totally confused with the Global Payroll and its Tax Implications. Houston cannot provide me with any documentation or clarity except that they THINK that for bachelors from Canada on Global Payroll, taxes at the end of the year are paid by ARAMCO. There is nothing that says that ARAMCO pays only first year taxes...What am I missing?
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