Job Discussion Forums

[Jessiemiles]

Have any Canadians reading this forum applied for and been granted non-resident tax status while living and working in Saudi Arabia?

I am especially interested in hearing how people dealt with 'secondary ties' like the driver's license, bank accounts, and credit cards.

Any information is appreciated

[cmp45]

I have non-resident status. I have a driver's license, bank account, and credit card.
It is near impossible to live in this world without those three basics.

I do not own property. Non-resident status is no big deal. I hadn't filed for income tax for almost 10 years, then decided to file all of them at once. It was a bit of a headache, but I managed to file for all the back years and have not had any problem with any boegy men coming after me. I did not pay any taxes, but the fees to have the tax returns done for 10 years cost me a few pennies

The simple equation: If you earn money in Canada while abroad then you must (should) acknowledge that income on your tax return. For example: if you rent your house while abroad, then the rent you recieve would need to be filed as income earned in Canada. Otherwise the tax returns are not much to fill in. As a non -resident, you are not living or working in Canada and all your money is earned outside Canada. I have never had to pay any tax on money earned abroad.

Just be sure to keep all records/documentation such as pay stubs, bank receipts & statements, etc as proof of earnings abroad and place of employment.

[cmp45]

I don't recall having formally applied for non-resident status. If I remember correctly when I filed my income tax forms, I just stated that I was non-resident. You may register with the Canadian Embassy in KSA and make an inquiry there? Just keep records for proof of status abroad and employment.
I try to limit my dealings with gov't entities; the less they know the better

[Jessiemiles]

Thanks cmp45

I agree about the license, credit card and bank account - not easy to do without.

I can't imagine not being able to drive when outside of the KSA for vacations and I wouldn't be able to get a Saudi license as I am female. Also, I will likely return to Canada at some point and the idea of going through graduated licensing again is very unappealing.
I want to make sure I give up whatever is necessary to qualify for non-resident status though. If I have to pay tax, the money wouldn't be much more than I make here and not really worth moving for.

I'll keep looking into it and I appreciate the advice

[cmp45]

[veiledsentiments]

While cmp45 seems to be having no problems, I have known other Canadians that did... not sure why. I remember one Canadian saying that the fact that he owned property caused him problems. I would consult with a tax professional to make sure you don't slip up and make your income taxable.

I would suggest filing every year so that you don't have to try to figure out what happened 5 years ago. Keep the bureaucrats happy is my motto. They have the ability to make your life miserable if they want to...

VS

[Jessiemiles]

Good advice VS

It seems that non-resident status for Canadians is less straightforward than most other countries. It's based on time spent abroad but also has to do with residential ties back home (property, possession, dependents, credit card, club associations, health insurance, magazine subscriptions etc...)

I've heard that keeping a residence in the country means that you'll have to pay tax, but I'm not sure whether an income property is counted as a residential tie. As cmp45 said, taxes need to be paid on income earned in Canada for sure.

I'm curious to hear people's stories because I understand that applications are assessed case by case.

[ghost]

One of the issues of becoming 'Canadian non resident' is that you lose the right to use the Canadian Province Health card coverage that you may have.

How long does it take, to get back into the health system, once you return to Canada? Different Provinces may have different rules, but in Quebec, once you become 'non resident' you should (in theory) hand in your Quebec 'carte d'assurance maladie' (health card) . I am not sure if it is 3 months/6 months or 1 year permanent residency?

Also, for those who go back to Canada during the summers, how do you get coverage - or do you buy overseas health coverage, which can be expensive?

Ghost in Saudi

[Jessiemiles]

[veiledsentiments]

[Jessiemiles]

[cmp45]

http://www.cra-arc.gc.ca/E/pub/tp/it221r3-consolid/it221r3-consolid-e.pdf
Info here covers alot of your concerns...
here is one excerpt ...
... a non-resident individual might acquire a dwelling place in Canada for the purpose of residing in that dwelling place upon his or her
retirement at some point in the future. If the individual were
to lease the dwelling place to a third party during the period
of time between acquiring the dwelling place and residing
there, then, unless the individual had other residential ties to
Canada, the dwelling place would not be a significant
residential tie with Canada during that period of time.
Generally, a lease to a third party would have to be on arm�s
length terms and conditions for a dwelling place located in
Canada not to be considered a significant residential tie with
Canada

[Jessiemiles]

That's great cmp45, cheers

Being granted non-resident status seems more complicated than it needs to be. I know somebody who was denied, but spoken to or heard from five people, including you, who had no problem at all. Guess I'll just have to see...

[ultraman111]

what if your the working father and the wife and kids are still in Canada? Do you have to declare earnings and pay tax?

[Jessiemiles]