Job Discussion Forums

FrznGuru · Joined: 08 Oct 2005 Posts: 33

Now that I have a job with CNA-Qatar for this coming Aug/Sep, does anyone know if I qualify for the overseas tax credit?

Thanks.

manoflettersk466 · Joined: 10 Mar 2005 Posts: 22

At an information night given by the College of the North Atlantic two weeks ago, the Human Resources person said the overseas tax credit was NO LONGER available to the Qatar campus employees. She was quite specific about this tax point......sorry....but remember you're makin' good coin anyway!!

FrznGuru · Joined: 08 Oct 2005 Posts: 33

Thanks for responding so quickly. It's good to know in advance, s I can budget.

Are you working there now? Or was it a job fair?

Gordon · Joined: 28 Jan 2003 Posts: 5309 Location: Japan

What was the overseas tax credit? How does it work if one is already a non-resident prior to their employment at CNA in Qatar?

FrznGuru · Joined: 08 Oct 2005 Posts: 33

This is from Canada Revenu:

Line 426 � Overseas employment tax credit

As a resident of Canada, you may be entitled to claim the overseas employment tax credit (OETC) for qualifying income (to a maximum income of $100,000 for a full year) from employment outside Canada.

In general, to qualify for the OETC, you must have performed at least 90% of your duties outside Canada for more than 6 consecutive months (all or part of which were during the tax year) with a specified employer.

Your duties must have been in connection with a contract (or for the purpose of obtaining a contract) under which your employer carried on a business outside Canada conducting one of the following activities:

* the exploration for or exploitation of petroleum, natural gas, minerals, or other similar resources;
* any construction, installation, agricultural, or engineering activity;
* any activity performed under contract with the United Nations (UN); or
* any activity performed to obtain a contract to undertake any of the above activities.

Note
Working under the international development assistance program of the Canadian International Development Agency (CIDA) does not qualify for the OETC.

IT497R4, Overseas Employment Tax Credit, provides more conditions with detailed explanations.

I hope this helps.

Gordon · Joined: 28 Jan 2003 Posts: 5309 Location: Japan

Thanks, but that is for residents of Canada. If you are a non-resident, you don't pay any Cdn taxes. I haven't paid any Cdn taxes the past 4 years I've been in Japan (8% income tax in Japan). However, since CNA is a Cdn institution, you have to pay Cdn taxes, so I understand.

FrznGuru · Joined: 08 Oct 2005 Posts: 33

This is from the CNA Qatar website

http://www.cna.nl.ca/Qatar/employee.asp

TAXATION

All Canadian employees working at CNA-Qatar are currently subject to Newfoundland and Labrador�s provincial taxes, as well as relevant federal taxation, except for those employees deemed non-resident by CRA.

You are fortunate. You wouldn't have to pay any Canadian taxes.

Rin · Joined: 09 Jan 2006 Posts: 173 Location: Doha

You can go non-resident if you work for CNA-Q as long as you don't have any ties to Canada (house, student loan, etc) Than you pocket your whole pay no income tax.

lukey · Joined: 05 Apr 2005 Posts: 68

Suggest to people that they do some research about becoming a non-resident of Canada. You can own a house, property, have loans, investments etc. - you just have to deal with them properly and there are certain restrictions- according to CRA regulations. eg - if you own a house you have to lease it out at arms length. It is worth it - think about it - whatever gross $ you make you keep it all.

kitelophone · Joined: 03 Jun 2006 Posts: 19

FrznGuru,

I applied to CNA a couple of months or so ago, and recieved a confirmation email saying the process takes some time. I sent a follow-up but have not heard back since. Does this mean I didn't make the cut? Do you have any advice on how to secure a job there? (looks pretty sweet - btw, i have an M. Ed. in Education Technology, TESOL certifcate, 7 years ESL in 6 countries)

I have an interesting story vis a vis non-resident status. I left Canada in 2000 to teach and go home once a year for holidays. I've never applied for non-resident status but researched it and read somewhere that if you leave without intention to return for some time then you automatically qualify. anyways, last summer when i was home i filled out my customs card as non-resident, but the line-up at Van Intn'l for non-resident was huge so i changed it to resident but the customs officer changed it back to non-resident so i assume my history is on the computer and i am now deemed a non-resident ( i was fearful of having to pay back taxes on 3 years income in japan!)

FrznGuru · Joined: 08 Oct 2005 Posts: 33

Kitelophone,
I received my official offer just this week. So, believe them when they say the process takes time. Did you call them? Did you go through the interview process? I see that there are still some job openings posted.

If you want the job you should contact them. The people I talk with in Human Resources are very helpful and nice. I am sure they would let you know what is going on.

verity · Joined: 31 May 2006 Posts: 19 Location: WestCan

Kitelophone,

If it matters at all, or if you want to be certain, you need to complete a Rev Can document "to apply" for non-resident status for tax purposes, forwarded to Ottawa, which will then assess your situation. In your case, it should be no problem, but as I understand it, until you do that, you are not necessarily classed as a non-resident. Checking a box on the customs card would not be sufficient to gain this status. The embassy wherever you are may have a RevCan office to give more info. Sometimes this stuff is a bit grey, so I did the process, to be sure of no future door-knocking from the tax man.