TAX Protection for Canadian Bachelor

The only reference I could find to tax protection in my hiring documents was in the ITEA Schedule A, Section B4. There is a one-paraph section on "Bachelor Tax Protection", and it says Bachelor Status employees "may" be eligible for tax protection.

I would suggest a discussion with your Relo Advisor to see if you are eligible. If your family is remaining in Canada, the CRA will almost certainly consider you a Resident for the purposes of taxation. If you do a Google search for "CRA Form NR73", you'll find some useful info on how the CRA evaluates your residency.

I'm on family status, so not an authority; others may be able to give better answers...

For income tax rates, I expect you'd be subject to the same rates as any other Canadian as you'd still be considered a Resident of Canada. However, there may be tax credits etc. on monies earned from a foreign source, not sure on that.

Two other things I noticed in the excerpt you posted are that your annual bonus is not tax-protected, and also the tax protection works on a reimbursement basis i.e. you will have to produce the money to pay the taxes owing yourself, then submit a claim for reimbursement after.

As far as paperwork from Aramco, we do get monthly pay stubs that you could print, but I'm not sure if there's an end-of-year summary (similar to a T4). I haven't worked a full year yet so I don't know, but maybe someone else can chime in.

Given your situation, it would be a reeeeally good idea to consult with a tax accountant who specializes in Expat matters. The accountant I got referred to gave me a lot of free advice, with the understanding that I will use his firm to file next year's taxes.

I have similar concerns regarding reimbursement of tax to Bachelor Status employees.

Can a Canadian on Bachelor Status confirm that taxes paid to the CRA on Base, Overbase and Benefits Supplement are reimbursed by Aramco?

My other concern is having to pay tax of taxable benefits such as rental subsidy, transportation cash in-lieu, monies for flights etc. If aramco lists these on your pay stub or end of year summary like a T4, the CRA will expect tax be paid.

Thanks,
GGBAAS

Read the HR manual and get the protection written into your offer if possible.

Bachelor means you have a wife, single means you are not married. In general, taxes vary depending on your situation, as in, once you leave, will you have primary or secondary ties to Canada?

Primary ties: dependents, primary residence are the two biggest factors.
Secondary ties: rental property, bank accounts, credit cards, driving license, health care; some or all fall into grey area, depending on your province.

I came from Ontario (although originally from Calgary) and in my case, my accountant has informed me I'm deemed a non factual resident of Canada.

What that means is I don't need to cancel my driving license, nor healthcare, and since I have neither primary or major secondary ties (biggest one being rental property or other real estate or major assets), in my name (read below for more details), my bank accounts, credit cards, driving license and healthcare fall into grey area.

As a result, I have the option to either report NIL or report all earnings; either case, I am NOT liable to pay taxes.

Unfortunately, I don't think non factual works for most, especially with spouses and /or children.

In most cases, you will want to consult a tax advisor/consultant or your lawyer.

Your best option, for protection, remove your name from assets such as vehicles or real estate, especially primary residence.

This is what I've done, in Ontario: my numbered Ontario Inc has the le deed and pays the mortgage for primary residence, which is also rental property.
However, this is also the address of the numbered Ontario, so my mortgage gets written off as rent; remember, now you can levee write offs.

You can also transfer the registration/lease/finance of your vehicles to your company; more than 1 vehicle, you now have a fleet.
In this case, ensure you also take out corporate insurance vs personal insurance for your vehicle(s). 

To sum it up, incorporate yourself in Alberta, list yourself as the sole director, transfer all les over to the company, and that's it: now you're protected.
These are now considered corporate assets/enies. 

The fees for registration and annual NIL filing for you company are worth it VS paying the CRA.

On the note, HSBC and Barclays have off shore in Jersey/Isle of Man; however, they require both your passport and SIN details, which is then shared with the CRA, so it defeats the purpose.

Sure, by all means!