Taxes over money transfer

I guess your local Canadian tax rules apply.

Howdy! You can transfer money from the bank you'll be banking with here in Saudi Arabia. Generally all banks charge a transfer fee of SR 25 maximum, that about US 7.00 for every transfer transaction worldwide. We have western union here as well, and lots of others money trasfers that are legitimate, they do take fees for transfers. I suggest you using banks it's cheaper. There are no fees for withdrawals from any ATMs here in Saudi also.  I hope this helps. Cheers!

Hello pgiuseppi,

Don't forget that while your income in Saudi Arabia may not be subject to income taxes there, that you MUST report all "World Income" on your annual T1-General to Canada Revenue Agency. You need to submit Schedule A along with the T1-General in order to do this.

That does not necessarily mean that your foreign income (from any country) will be taxed by CRA, but it MAY be especially if there is no existing bilateral Tax Treaty between the countries. Regardless of whether or not that foreign income is taxed in Canada, it could however serve to bump you up into a higher tax bracket, which would have the overall effect of forcing you to pay a slightly higher tax rate on your Canadian sourced income, so you need to be aware of that.

Also, if at some point in the future you are deemed to be a non-resident of Canada for income tax purposes you will be subject to a 25% withholding tax on any income or funds received from Canadian sources. This would mean you are no longer required to file a T1-General, but the withholding tax is non-refundable since it quits any tax burden in Canada. It is usually much higher than if you were still filing annually. But, for the time being, this is not the case in your situation so you will continue to file as if still living in Canada.

Cheers,
William James Woodward, EB Experts Team

thanks for your informed answer wjwoodward,
don't seems that Saudi Arabia and Canada gor a treaty:

fin.gc.ca/treaties-conventions/treatystatus_-eng.asp

I'm a Canadian permanent resident: how long can you stay outside canada before you become a non resident? will the fact that I pay taxes in Canada help maintain this status?
Thanks

Being deemed a non-resident for income tax purposes is NOT the same as losing one's PR Status with CIC.

A deemed non-resident for income tax purposes is anyone who no longer has any subtantial familial and financial ties with Canada. As long as you retain a residence and bank account, have immediate family members in Canada you would still be considered a resident for tax purposes.

I have no idea how long you can remain outside of Canada before losing your PR Status, or if you even would. It stands to reason that you might, but I'm not sure. That's something you'd need to ask Citizenship and Immigration Canada or an immigration lawyer.

Cheers,
William James Woodward, EB Experts Team

Hello. I was hoping to get some information re. Canadian taxes on money earned in Saudi Arabia. I'm a Canadian citizen but have not resided in Canada for about 10 years. I have a bank account in Canada with less than $10,000 that I have kept active by making a minor transaction about once every 2 years.

I am currently residing and working in Italy, but I have a nice job offer to teach in Saudi Arabia. I was attracted to the "tax-free salary" offer in the job ad, for $60,000 Canadian, but after thinking about it I realize that it might not actually be tax free. I would pay taxes on it if I wired it back to Italy, for sure. For tax purposes, they - like Canada - look at where you reside, or have resident status.

I am planning to go back to Canada in 2015 to live and work, possibly permanently. At which point I'd be a Canadian resident and tax payer. But up until then? I may - or will probably - need to send some of my salary at some point to my bank account in Canada. Would that seem strange? For the bank? For the tax office? For anyone else? My idea being to then send some money from Canada to my account in Italy, for living expenses. Which, by the way, is something I have done in the past and no one batted an eye, not the bank or the tax office.

In short, trying to keep my tax-free status in Canada, without paying high-ish taxes in Italy, at least for 9 months or so. No, we're not talking about million-dollar investments and whatnot, but I personally need all, or most, of the hard-earned $60,000 both for the present and for my planned return to Canada next year.

Any thoughts?

Many thanks.

John

I have the same problem.
I'm from Romania and if I will work in Riyadh I don't know if is needed to pay tax for money sended from Riyadh to an Romania bank account.
Has anybody an ideea if this money must pay tax in Romania?