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Post by MikeP on Sept 16, 2014 1:33:54 GMT
o!
I am a Canadian planning to join Saudi Aramco very soon. In order to become non-resident, I will certainly be severing all my ties with Canada, except the RRSPs. That said, I have a few very specific questions:
How have Canadians set up their banking outside of Canada:
1. Which bank did you choose
2. What are the fees (roughly)
3. Are there minimal balances required
4. Did you have to set it up before leaving Canada?
As there is no tax treaty between Canada and SA, how do Canadians establish a clear residency in SA?
Have any Canadians returned to Canada after a number of years in SA - did they experience any serious problems with the CRA upon returning and becoming Canadian residents once again?
Thank you in advance
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Post by O&GEngg on Sept 23, 2014 8:11:17 GMT
Mike - I arrived here from Calgary 5 weeks ago and am attempting to get some sort of bank account set up outside of KSA so that I can close my Canadian one. My biggest piece of advice is to get an offshore account set up BEFORE you get here. Look at HSBC's Expat account as well as Barclay's offshore accounts. Getting them set up from here is a lot of work. All of that being said, I haven't talked to one Canadian here that has shut down their account in Canada. Most of them still have their TD, CIBC, BMO, Scotia, etc. accounts still active. Personally, I'm going to work on shutting mine down because my tax lawyer advised it. I can't comment on minimum balances or fees as of yet. Also, the benefit of setting it up from Canada is that you can have it as an investment account. Setting it up as a Saudi resident makes it difficult to have your money grow. Hope this helps.
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Post by CanuckGuy on Sept 23, 2014 13:49:14 GMT
MikeP,
For HSBC Premier, you need to keep a minimum balance (cumulative across all accounts) of $100,000 and the monthly fees will be waived.
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Post by crazycatlady on Sept 23, 2014 14:32:29 GMT
Mike, we returned to Canada from elsewhere overseas and the only out-of-ordinary thing we've had from the CCRA is a request for further documentation on worldwide income after we applied for the child tax benefit for our youngest son. Our subsequent tax returns were a completely normal process.
Also, we kept a bank account in Canada during our previous time overseas with no disadvantage to us, and we'll probably keep it while we're in KSA.
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Post by dave74 on Sept 23, 2014 18:55:20 GMT
@ crazycatlady:
When you left Canada the first time did you look for tax advice or let somehow the CRA know that you were leaving and becoming non-residents for tax purposes OR did you just stop filling income tax returns (after severing your primary ties like selling your home) without telling anybody??
Also while keeping your Canadian bank account during your time overseas did you still use it (checking/saving accounts) to make deposits/withdrawals/transfers??
Thank you for your feedback.
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Post by crazycatlady on Sept 24, 2014 13:34:14 GMT
Oh, we definitely had an tax person working with us, and there was a decent amount of paperwork that needed to be collected about our assets prior to departing. We did not try at all to sneak anything past the government. Our Canadian bank account remained our main bank account, and yes, that's where paycheques were deposited and where we withdrew bank transfers (set up with our bank in Canada beforehand) and cash from ATMs. Prior to moving, we did consolidate everything at a single financial insution so as to minimize our footprint. Banks aren't as secure everywhere else in the world  |
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Post by MikeP on Sept 29, 2014 1:00:47 GMT
Thank you all for your very helpful responses!
I also did some research on my side and consulted a Canadian tax specialist that deals specifically with expatriation-related issues. Here's what I found out:
On the banking front, I am going to go with HSBC because I trust them as a bank and they truly have a worldwide presence (note: I have always been with RBC and I do not know anyone at HSBC). If you open a Premier account in Canada, then they can very easily open another Premier account for you elsewhere in the world. Yes it is true that you are required to keep a minimum balance of $100K, but I will transfer my RRSPs to HSBC as they qualify when calculating the minimum balance. When opening this account, you are pretty much forced to open a checking account, but it doesn't need to be active. For my part, I intend on keeping it inactive as much as possible in order to lessen my “secondary ties” with Canada and thus limit my residency exposure. I will probably be setting up my 2nd Premier account in Bahrain as it is close to Dhahran and always accessible. My concern with KSA is that after leaving, if re-entry was a ever a problem and you “needed” to go to the branch, then it could be problematic.
As for residency, KSA doesn't have a tax treaty with Canada and the zero tax thing makes it that much more important to cut as many ties with Canada as possible. Here's what was recommended to me:
- First and foremost, bring your family and sell your house as these are primary ties. You may rent your house, but it has to be a long term lease and avoid any short-term, lease-breaking clauses in the rental contract.
- Cut as many secondary ties as possible: Get rid of the bank accounts, cancel the Canadian credit cards (including retail store cards), cancel memberships, etc. For more examples, just check the CRA website or Google it. Also, don't just call and cancel the cards. Send messages stating that you are permanently leaving the country and need to cancel your cards. Print and keep these messages as they could be practical if ever you were audited.
- Don't visit Canada too frequently and don't make it too regular. Maybe even consider staying out of Canada for the first 2 years.
- RRSPs are fine and have to stay in Canada. You do not have to get rid of them, but if ever you wanted to, better wait until you are officially non-resident as you will pay less taxes on the withdrawal.
- The driver's license is considered a secondary tie but it is very practical to keep it. As you will no longer have an address in Canada, better to ensure it expires as far as possible in the future in order to give you time to obtain a new one in KSA
Personally I'm just very cautious and will try to keep my Canadian presence to a minimum: One small “inactive” checking account for HSBC purposes, my Chartered Accountant membership (or else I lose my designation and I don't want that) and my life insurance. It is probably not required to be as cautious as I will be, but I prefer safe than possibly sorry.
My apologies for this long-winded response, but I hope it will prove useful to some of you.
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Post by cookie23 on Mar 25, 2015 17:53:08 GMT
Hi MikeP,
I am also a Canadian going to be deployed to KSA this April 30, 2015.
Do you have a recommended canadian tax specialist that you went through in Calgary that I can contact so that I can also start my process too?
Any assistance from my fellow Canadians for contacts is greatly appreciated.
Regards,
cookie23
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Post by jdtd2015 on Apr 1, 2015 4:11:03 GMT
Hi Cookie23,
I am also departing for KSA on April 30, 2015 from fort mcmurray.
Where you will be located in KSA? Did you receive any confirmation on housing?
Thanks,
jdtd2015
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Post by conquinn on Apr 1, 2015 4:28:02 GMT
Hey Cookie23
I am travelling with my family to KSA on April 30th from Calgary. I have similarly queries as you. Do you want to touch base?
sebx23 at hotmail.com
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Post by cookie23 on Apr 4, 2015 5:02:33 GMT
Hi jdtd2015,
I will be located in Dhahran. Housing confirmation will be provided by my relocation adviser soon.
Regards,
Cookie23
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Post by cookie23 on Apr 4, 2015 5:04:34 GMT
Hi conquinn,
I sent you a PM.
Regards,
Cookie23
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Post by cgylight on Apr 24, 2015 16:00:53 GMT
Hi Cookie23,
I am scheduled to depart from Calgary on May 28, 2015. I want to ask you more questions in regards of the non-residency status. Do you have a tax specialist that familiar in how to deal with this situation?.
Thank you very much,
cgylight
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Post by CanadianBacon on Apr 28, 2015 18:36:40 GMT
We consulted an Expat advisor here and I would be willing to share what I have been able to learn. Send me a note if interested.
I'm also departing Calgary, leaving next week.
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Post by CalWorPar on May 20, 2015 17:14:15 GMT
Hi There
I am considering an Process Engineering position with ARAMCO & my interview is scheduled for next week. I have two kids, both boys who will be attend grade -10/2 in Sept-2015. I am more worried about the elder one who will in grade 10 starting Sept-2015.
Questions:
1) If I leave my son in a boarding school in Canada, move to Saudi with my wife and little one, Can I still be a non-resident for the tax purposes?
2) How does the RESP work out in that case?
3) From the forum, I came to know that the Dhahran High School is no taking any more admission. What are other options to get admission in grade-10 in Sept-2015 in Arabia?
4) If I opt for single status, keep my family in Canada for a year or so, then move my famly to Saudi next year. How the TAX will work out?
I know these are weared questions but hoping someone could share knowledge and experience.
Thanks
CalWorPar
CalgaryPP at gmail.com
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