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Post by fsaeed81 on Jun 30, 2014 0:58:58 GMT
Any expats working for Aramco who are from California? We're going to BI/Mi and I found its a bit difficult for California residents to release their residency, even being expats, would be required pay income taxes. Are there an ex-California residents who have filed taxes while being expats?
Thanks in advance.
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Post by vpainter on Jun 30, 2014 11:13:28 GMT
PriceWaterhouseCooper has an office in DHA and does taxes for Employees.
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Post by aussie hopeful on Jun 30, 2014 12:15:08 GMT
Do Price Waterhouse assist any other nationalities with tax questions?
Thanks
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Post by newuser on Jul 2, 2014 20:52:52 GMT
fsaeed81,
How and where did you come to know this. Since we are from CA as well
Thanks
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Post by bluecheeze on Jul 8, 2014 6:47:57 GMT
If possible establish residency in one of the states that does not require expats to pay state income tax while abroad.
I moved from CA-> FL (1 month and got drivers liscence) -> Saudi Arabia = several thousand $$$$ in savings per year.
For this to work you can not return to California when you are done with aramco (establish residency) or you will owe back taxes + penalties. California is known for hunting down expats who return to the state (or so I read during my research last year) so that they can get "their fair share" :-)
If you never want to return to California this is a great option.
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Post by newuser0714! on Jul 8, 2014 20:24:02 GMT
Is there any expats from Connecticut that could tell me what their experience has been like for tax purposes? Thanks!
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Post by pinoycoolada on Jul 11, 2014 12:08:22 GMT
Bluecheeze, fsaeed81, newuser:
I am also from California, trying to figure out the implications of staying in CA and reduce the tax liability. Unlike most of you, I am hoping to keep our CA property as long as we could but now worried about the huge tax liability looming in the horizon once PWC files my return this January 2015 (to meet the foreign earned income exclusion for federal not state tax purposes). My question is, are there persons out there who maybe in a similar situation and planning on moving to a state without income taxes? If you did make the move, how difficult was it establishing residency? My family unfortunately do not want to make the move here in the kingdom at this time.
I appreciate your input.
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Post by padthai5 on Jul 13, 2014 20:36:51 GMT
Vpainter - Since I do not have PM priviledges - As one the company's proponents of the tax services contract with PricewaterhouseCoopers and on behalf on the company and PwC, I am politely asking you to cease and desist in giving PwC contact information. PwC nor the company will provide any legal or tax advice to a nonemployees or noneligible employees. FYI, most, if not all, of the persons in this email string are ineligible to use PwC's services at this time.
All not yet arrived future hires, prospective employees and job seekers are advised to seek their own legal and tax advice prior to accepting a job with Aramco and their arrival in Saudi. Failure to do so could be quite costly to them. Now, they could seek tax advice on this forum but from what I've read on here, 90%+ of it is incorrect or at the least misleading. However, 1 UK and 1 Aus fellow have been spot on in regards to their respective countries tax situation.
Once USD Payroll employee has arrived In Kingdom, they may contact their local area Personnel Office or Payroll to obtain PwC contact details. Employees may always schedule appointments to meet in person with PwC throughout the year, however, PwC services are limited in scope. We provide PwC with a list of new hire's contact details,PwC contacts the new hired employees to hold group briefings and also provide other relevant information via SAO email.
Regards
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Post by vpainter on Jul 14, 2014 21:43:56 GMT
Ok, thank you for posting. People would love to know which username goes with the 1 UK and 1 AUS who are correct about their country's tax situation.
FYI: you may not have PM privileges, but my email is all through this forum and could have been used.
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Post by fsaeed81 on Jul 26, 2014 2:05:15 GMT
I consultation with a California tax attorney and I'm glad to hear I won't wont need to worry about California taxes. There are various rules regarding residents and where one's domicile is. After speaking to the lawyer and explaining my situation, it was evident that I am leaving California with sincere reasons of not returning (although that option would be open if I choose to do so in the future... distant future).
Primarily, he was concerned with any property we owned in California, or if I would have any immediate family residing here or if I will be working part-time in the near future. I own no property in California, I am transferring my ownership of my vehicles to my father. The only limitations; we cannot be in California more than 45 days upon a visit, we should visit for less than this time.
But situations will be case by case; so any other individual should consult a tax attorney.
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Post by crucian on Jul 29, 2014 12:06:20 GMT
As an ex-Aramcon (2006-2014) who left California to work with Aramco I can offer this perspective:
When we left the US we were aware of the potential state tax liability in California and so made all best efforts to be considered non-residents. This included renting out our house, giving up the voter's registration cards and driving licenses and declaring our 'domicile' in our tax returns to be other than California (yet still completing the California tax return since we had rental income). On returning to the US we realized we could not go back to California and so established residence in a different state and sold the house. We now have no plans to move back to California.
Note, since California state is in such a bad financial position you might expect the revenue service to be very interested in gaining any extra tax revenues (and penalties and interest).
Hope this helps.
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Post by fsaeed81 on Jul 31, 2014 7:29:59 GMT
crucian, thank you for your experience; I've sent you a PM.
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Post by smn25 on Dec 22, 2014 6:24:35 GMT
Has anyone been able to establish FL or TX residency to avoid California taxes while still owning a CA residential rental property?
I'm a new hire starting the paperwork process and considering the CA state tax implications. I hope to keep my current California home as a rental income property for the long term but do not intend to live in CA upon returning to the US. I plan to rent my CA home to my in-laws for about a year (as they renovate their own home) and afterwards, rent it through an agent. Before moving to KSA, I plan to establish residency in Texas because there are no state taxes and it's where I'd likely move to upon returning to the US. Any advice or suggestions would be greatly appreciated.
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Post by crucian on Jan 1, 2015 18:39:40 GMT
If you don't intend to return to CA after you leave Aramco then declare your domicile as somewhere you intend to return to on your CA tax return, unenroll your voter registration and try to get a driver's license in TX or Fl using a relative's address (doesn't have to be done immediately) and have all your mail sent to that address (including bank and credit card statements). You can still rent out your CA property.
Hope this helps.
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Post by morning on Jan 3, 2015 1:07:26 GMT
Thanks Crucian! Have you gone through this process with California?
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