Accounting advice

I've got a question for the nsmb e-accountants here (if any)

I've been offered a job overseas. It will be for 1 year. The company is not Canadian. I will not be living in Canada for much of duration of the Contract (2 months or so back in Canada for my leave periods, if that).

How does one handle income tax in this situation?

In the extreme, I suppose you don't declare any of your income and get off scott-free. Can that possibly be allowed?

Do you prorate the amount of time that you are in Canada for the money you have earned in the year?

Insights?

It all depends on residency - read this:

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

It all depends on residency - read this:

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

I see… So, a wife and kid staying in Canada appears to oblige me to pay Canadian income tax.

I doubt my employer will be providing a T-4… how does one declare how much you made abroad?

If you don't get a remittance stub, you simply declare a number. They either accept your number or audit you. :)

Some countries have tax agreements, so for example if you worked in the UK, then CRA could find out how much you earned, but if you pay taxes there you wont here. If you go to the UAE, Saudia Arabia etc, then all your money will be tax free, except when you return to Canada at which point you will need to declare any interest on assets held abroad, when you do your yearly taxes.

I've got a question for the nsmb e-accountants here (if any)

I've been offered a job overseas. It will be for 1 year. The company is not Canadian. I will not be living in Canada for much of duration of the Contract (2 months or so back in Canada for my leave periods, if that).

How does one handle income tax in this situation?

In the extreme, I suppose you don't declare any of your income and get off scott-free. Can that possibly be allowed?

Do you prorate the amount of time that you are in Canada for the money you have earned in the year?

Insights?

In General (for tax treaty countries) if you don't renounce Canadian citizenship the following applies: You would pay taxes in your country of employment (through payroll deductions, etc) and file a tax return in the foreign country. In Canada, you also complete a tax return declaring your foreign income, and there is a section in the Canadian return when you input the amount of taxes that you paid to a foreign government. The CRA is pretty good at allowing you to avoid double taxation, in the end you will pay the same total taxes as if you'd earned the money in Canada.

[disclosure: this advice is general and may not apply to your specific situation, for the best advice you should contact an accountant and discuss your full situation, all of this information is available at www.cra.gc.ca]

List of treaty countries: http://www.fin.gc.ca/treaties-conventions/treatystatus_-eng.asp

Senegal…

When we lived in Saudi my parents had to transfer our house and other stuff cars etc. to a family member to help avoid Canadian taxation. We were gone for 5yrs in total.

From my experience, it is worth talking to an accountant before you go. The advice will be very specific to your personal situation - even if you do keep residency.

yeah… so… anyone know a good accountant? What do they cost? Never needed one…