Job Discussion Forums

[Don Mario]

So, tax free salary in Oman for foreigners,
except Canadians? Not fair!

What is the deal? I declare myself a non-resident, right?
If I want to buy a car outright I have to be a resident
(and then pay taxes!) and I have to have a drivers license
from my home country (expired while I was abroad).
Now what?

Seems to be a no-win situation for us from northern
North America and a great package deal for every other
group.

Any answers?

DM

[veiledsentiments]

You seem to be a bit confused...

There are no taxes in Oman. If Canada wants to charge you taxes on your overseas income, that is between you and Canadian tax laws... Oman has nothing to do with it. And it will be no different whatever country you choose to work in overseas. None of my Canadian friends paid taxes on their income in the Gulf. It sounds like you need a good Canadian tax adviser.

Once you have your signed contract in Oman, you can choose to purchase, rent, or lease a car like any other expatriate. Any expatriate who has let his driving license expire in his home country will have to take the local driving lessons and take the test. The easiest thing would be to renew your Canadian license... but I know nothing about that.

VS

[Don Mario]

Thanks again, VS!
You are the source for information for the chosen
few who chose to live and work in Oman!

DM

[Lostcamel]

The way to avoid CDN income tax is to declare yourself a non-resident of Canada. You have to apply for that status. Call the CRA office and check out how to do that. If you have any interests in Canada, ie a bank account, propety, a loan, investments (that may be a savings account), you will be considered a Canadian resident and liable for CDN taxes. And you are right, it doesn' seem fair. Canadians are taxed on the 1st dollar they earn overseas and the Americans and Brits, well, they have different rules, but they can be a resident of their own country and not have to pay income tax simultaneously, with all the fringe benefits of ownership. As VS said, this issue isn't about Oman but about Canada.

Once you have been declared a non-resident you won't have to pay any taxes on your Omani salary. This is good and bad depending on your age. If you want to claim the CDN OAP you have to prove that you have lived in Canada for a certain number of years before you retire, and the rules seem to change quite often. If you have a wonderful CPP, then all this is irrelevant.

If you declare yourself a non-resident you will have to give up any rights to the medical though (what is left of it that is). This isn't a problem in Oman as the recruiting agencies for the colleges, for example, offer excellent private health plans. Again, you need to check that your offer from Oman provides a recognized medical plan. Having access to Muscat Private Hospital is a life saver.

Re the driver's license. You do need to take your CDN one with you, and one that is older and a few months. When I first came to Oman I had just renewed my driver's license and it wasn't accepted here. They need to know that you have been driving for at least ? number of years. Maybe someone else knows the exact number of years. I had my cancelled license DHL'ed out to me and that seemed to work. It is really advisable to do this as getting licensed in Oman is a nightmare, depending on your racial background.

It really is advisable to get some good advice before you leave Canada. There are all sorts of hidden penalties for leaving Canada which one doesn't see at first. Giving up ones right to a pension is pretty serious as is being faced with a huge bill from the CRA. I have not heard of one recruiting agency that offers a pension plan for their recruits, neither does the Omani government. The British Council do a better job in this area. Recently, there has been a 6 and 60 ruling. If you have been teaching here for 6 years or have reached the age of 60, the Ministry of Higher Education is asking, demanding, that people leave. The private institutions seem to be keeping people on over the age of 60 and the agencies haven't been told what to do, yet. So, it pays to be aware that you will always be a guest here in Oman and your employment is at their will, not yours.

I'm sure there are other Canadians around here that can help you.

[veiledsentiments]

[Don Mario]

To Lost Camel

It sounds like you have had the expierence, albeit, with other expats.
Nothing of Canadian taxes is logical. I left the place a few years ago,
and never looked back. No cancellations or notices. I do have a
bank account, credit card. Not sure where this places me for taxes,
and a big surprise bill.

As for the pension plan, still a few years short of that fate.
Just curious how stringent the Omanis are enforcing the resident
or non-resident status. I can assume it is a matter of choice of
the signing teacher, what they want, hopefully not rules of the
land of Maple Syrup?

Lets hope that contracts can be signed without headaches like this.

DM

[veiledsentiments]

[Lostcamel]

The non-resident status is only of interest to the CRA. This is a completely different issue from the Omani resident's card which your employer has to organize for you--if they don't you will be working illegally. The Omani government has no interest in anything like Canadian taxes. There are lots of regulations now regarding (Omani) resident cards and you can check the details by looking at the Omani Labour Law.

It's a good idea to have a read through of the above said laws as the recruiting agencies have a tendency to do their own thing. Two well known agencies have been in violation of these laws recently with differing outcomes--not on the plus side for the recruits. Suffice to say, the recruiting agencies are working for their own profit and not for the recruits, and sometimes they are working for their other interests (not the staffing Omani colleges). Buyer be-warned.

VS, I know of one USA MOHE teacher who was given 5 days warning before he was asked to leave his work place. He had turned 60. An non-Omani HOD Arab turned 60 but he was given another year upon appeal. It used to be 65 but it seems to have changed and they intend to apply this law. HE the Minister of Higher Education made the 6/60 rule up possibly overnight. It is funny really, just as one is getting a grip on how to teach in Oman, one is asked to leave. The over 60's hired through recruiting agencies seem to be holding on to their jobs at the moment, but that could also change. The Uni of Nizwa still hires over 60's, I don't know about the Min of Man, but there seem to be plenty of 0ver 60's there as well. There seem to be two laws, one for ministry employees and one for agency recruits. One needs to check if out. Non Omani Arabs are also asked to leave before white passport holders (Western) e.g. Iraqis, Tunisians, etc. It all depends ...

Canadians have many ways of not paying taxes--one has to be aware and apply the law of omission wherever possible. Having said that, one also has to be cautious. One audit could knock you off to PEI. Not too bad on an idea come to think of it.

[veiledsentiments]