Job Discussion Forums

Shonai Ben · Joined: 15 Feb 2003 Posts: 617

In one word: TAXES

foster · Joined: 07 Feb 2003 Posts: 485 Location: Honkers, SARS

I am blessed that Canada granted me Non-resident status. When I left, I had a bank account used to pay back Student Loans, a car which was for sale and a passport, which somehow does count against you. Yes, the people at the Non-resident section think that is ridiculous as I *must* have a Canadian passport.

Canada can touch nothing I earn in HK. Even better, HK is a non-capital gains country, so if/when I move back to Canada, they can't touch what I made over here. They have rights to any interest earned from said income when I am back on Canuck soil, but nothing from the principle.

I actually took a paycut when I moved to Japan of about $1000 a month, but with Japan taxes being 5% and CDn taxes being almost 100% (I Joke), I came out ahead, even after paying $850CDN for a hole in the wall.

yaramaz · Posted: Thu Mar 11, 2004 9:01 am Post subject:

Last year my income here in Turkey (Sept-Dec for tax purposes) was about 2400 pounds, or about 5500 cdn. Not much. Also, this is after a lot of turkish tax was taken off by our accounting services. I also worked a bit in Canada before that, teaching here and there. I think my grand yearly total was 17 000 cdn (wooohoo! rich!). I had to buy a 5000 dollar rrsp to offset taxes payable... and I still had to pay 600!!! Gaaaak! And this was after hiring an accountant who specialises in this stuff...

My main problem was the way my school handles taxes. It pays taxes to the Turkish government for all the staff as a lump sum. Therefore when Rev Canada asked me to file a tax return here so they could figure out if I had paid enough already and adjust the tax credits accordingly, I couldn't. I could send them a statement saying that all staff here paid a total of eighty five gazillion lira... but that's not exactly relevant.

I sent them a printout from our accounting services stating my net and gross and all the details, signed and stamped... but it was rejected. They couldnt conceive of the notion that filing income tax returns is not a universal thing. I am bracing myself for further abuse this year....

Aaaaaaaaargh!

struelle · Joined: 16 May 2003 Posts: 2372 Location: Shanghai

Capergirl · Posted: Thu Mar 11, 2004 11:15 am Post subject:

ls650 · Joined: 10 May 2003 Posts: 3484 Location: British Columbia

Crazy Eagle · Joined: 24 Feb 2004 Posts: 56 Location: Canada

Well, this has all been very enlightening. Canadians seem driven overseas to 1) escape the insane taxes, 2) ecape the rat race, and 3) seek adventure. All good reasons.

I lived in the San Francisco Bay area for 3 years, had a great time and earned very good money (with Wells Fargo). Then the boom ended, and my contract was not renewed. But while I was there, I paid no Canadian taxes. If I remember, the rule was, if you lived abroad for six months and in Canada for six months, you pay only six months of Canadian taxes.

Why is ANYONE abroad paying taxes to the Socialist Republic of Canuckistan? Property ownership? I could be wrong, but I think that you can have an RRSP in Canada and still pay no Canadian taxes.

Would someone please verify this? Can you have an RRSP, live abroad, and still pay no Canadian taxes?

Thanks,

Crazy Eagle

"If you marry for money, you will earn it."
Old European Folk saying Cool

Celeste · Posted: Thu Mar 11, 2004 10:32 pm Post subject:

CRazy Eagle-

You do have to be out of the country for over 2 years (in that period, you are allowed to visit Canada, but I can't remember the maximum nuber of days), you cannot maintain a place of residence (you have to rent your house out to a non-family member), and not have any spouses or children left behind in Canada. If you meet these criteria, then you can APPLY for non-resident's status. (THey don't have to grant it, but in my case they did. I had a house, an RSP, some bank accounts, and a whopping student loan.)

ls650 · Joined: 10 May 2003 Posts: 3484 Location: British Columbia

Crazy Eagle · Joined: 24 Feb 2004 Posts: 56 Location: Canada

Two years before you don't have to pay Canuck taxes?

I did not pay Canuck taxes for any of the three years I was in the US. I wonder if there is some arrangement between the two countries.

How does it work if you teach ESL in Korea or some place for one year? Surely you do not pay income tax twice!

foster · Joined: 07 Feb 2003 Posts: 485 Location: Honkers, SARS

I think you are allowed to be home for less than 180 days....which seems like a LONG time.

I dont know what they would do to non-taxpayers, but they have their ways. I was lucky that I was granted non-resident status. I know that this summer i will be paying for my annual medical check up, since I am no longer covered by the health plan.

When I came through customs last time, I was welcomed home by the customs guards.

ls650 · Joined: 10 May 2003 Posts: 3484 Location: British Columbia

nomadder · Posted: Fri Mar 12, 2004 4:12 am Post subject:

I thought it was 2 years out and no taxes. And will they take tax from investments? Interest only? Think I�ll be permanently away. Well I was planning to be anyway.

My reasons-It�s cold, boring, unfriendly and not enough good jobs.

foster · Joined: 07 Feb 2003 Posts: 485 Location: Honkers, SARS

In order to be granted Non-resident status, you must be away for more than 2 years...if you return to live/work in that time, then they will tax all your earnings while away. Alot depends on WHAT you have in Canada. Property and Immediate Family (hubby/wife, kids) will ensure you never get non-res status. A bank account can hurt but not as much, if you promise to close it when it no longer serves it purpose, IE loan repayment etc.

Investments can be taxed if you are in a Capital Gains country. Hong Kong is Capital gains exempt, which means they can tax any income from interest that I RE-invest in Canada. I am not sure about other countries. SHould I return, I will hiring a good accountant who knows the international laws and money situation.

Newfoundland · Joined: 14 May 2003 Posts: 75 Location: Shanghai

Talk about taxes all you want but whenever I meet a fellow canuck and ask them why they are here I never heard them mention taxes yet. When you stop and think about it yes it is an advantage but if that is someones main reason for teaching in a foreign country I feel bad for them.