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Discussion in 'Express Entry / Expression of Interest' started by axolotl, May 11, 2017.
I was asked by someone how to minimize tax on salary and below is my answer.
If you don't plan on retiring in Canada, you can take your RRSP money after you leave the country. Then the tax rate is 25%. This per my accountant. So, the tax deferral is a good deal if you aren't retiring here. As a bonus for me (a US citizen who gets taxed on global income), since Canada would tax it, the US won't under current treaties. So, I put in 1 buck, firm matches 1 buck. Take out 1.50.
On the other hand, US citizens should NOT get a TFSA as the IRS considers it a trust and there is not only no tax savings, but it requires more paperwork (meaning more money to your accountant).
I realize you said you were from Europe but wanted to put it into perspective.
Great info! Thanks a lot.
I found this. Obviously it can be further reduced to 15% if you don't withdraw more than 10% a year.
This suddenly makes RRSP much more interesting.
I officially transferred the ownership of most of my liquid assets outside Canada to my mother, who lives in a jurisdiction that has more lenient tax laws on personal wealth. Since I am my parents' only child and there is enough trust between us on financial matters, the assets are expected to become mine again, sooner or later through either gift or inheritance. The purpose is of course to avoid any taxation on capital gains or dividends by the CRA. According to Canadian laws, I will pay zero tax when receiving any gift/inheritance from my mother in the future, and she will also pay zero tax at that moment according to the laws of her country of residence.
In principle, I can also do the same with my future earnings in Canada, although it will become more complicated if I invest in real estates in Canada.
@axolotl your reasons to not settle down in Singapore completely differs from mine and i am a Singaporean. Just wanted to ask. If Singapore was accepting of same sex marriage, would you settle in SG?
I like your story. If you don't mind I would like to have in my network. About to start my canada PR process, you can dm your contact.
The non-acceptance of same sex marriage in Singapore seems to me more like a symptom than the problem itself. Certain values that I consider fundamental, such as individual freedom or equality, seem not to be shared by the SG government or the SG society. I really liked many Singaporeans on an individual level. But at the same time, Singapore is the most racist country that I have visited and the lack of transparency regarding immigration makes it very hard for foreigners to have a long-term plan. (It is an open secret one's ethnicity, or what is called "race" in Singapore, is a key factor for one's chance of getting SG PR or citizenship. This is just one example of what I mean by racism and lack of transparency.)
It is not my intention to offend anyone. But I would rather share my honest opinion than sugarcoat things.
With regards to your opinion on transparency and racism, i agree with you. I have friends of a "different race" who are more qualified but I see get their applications rejected more times than I can count. and I see others of a "certain race" obtaining PR or citizenship with just 1 try and these are the people who most probably wouldn't even qualify for EE. And sadly I see a lot of cases where couples bring a baby into this world just to obtain some kind of resident status here but even there life is so unpredictable cause immigrations could just decide not to renew the visa once it expires.
Disclaimer: I'm just posting what i observe.
Last weekend was a Labor Day long weekend. I went to Killarney Regional Park with five other people, four of which were my colleagues. We left at 5am on Saturday and got back at 4am on Tuesday. The trip was physically exhausting but we had fun.
It was a portage trip, meaning that we had to paddle the canoe a bit, carry them overland, and paddle again, and carry overland again, etc. We got two canoes and had a lot of weight to carry. The longest portage was 3 kilometers and we had to walk the same distance three times to carry over all our stuff. In retrospect, we were too ambitious and the distance should be covered in at least six days instead of three. Also, we had too much food, and certain useless stuff (such as a fishing rod + fishing kit). I carried a backpack of about 50 kilos. But we ate very well (barbecue and Thai green curry). It is also good to know that I am still in good shape physically. Also, I found some really good oyster mushrooms which I ate/will eat yesterday and today.
On Tuesday I used the same vehicle to move some furniture that I got for free from another colleague, to my new apartment. I got a table, a couch, a vacuum cleaner, and a lot of other smaller things. I also borrowed an inflatable airbed from him. The minivan that I rented turned out to be insufficient and his wife and parents in law came with me in another vehicle. His father in law was very helpful in moving the couch to my apartment on the 2nd floor. Really nice people to whom I will be for ever grateful!
After the move, I returned the vehicle and showed up at the office around 7pm
I have learned that moving costs to Canada can be tax deductible, but the benefits will be rather limited since my marginal tax rate will be only 30% for 2017 because I moved here in July. I talked to the CEO and asked him whether it would be possible to get some of my 2018 income advanced to 2017 to maximize the tax benefit. He said he did not see any problem although he would have to confirm with someone else. This kind of flexibility is a huge advantage of working at a startup.
Finally I landed as a permanent resident by crossing the border at Peace Bridge. My colleague L went there together with me.
Nothing really special. I told the US border agent that my intent was to do flag-poling and I got an administrative refusal, even though I did not need a visa for the US. The wait on the US side was a bit long and later I learned that I should have said that I just wanted to have lunch in the US and that would have been faster.
On the Canadian side it was the same waiting game. When the guy handling my case said "Congratulations! You are now a permanent resident", I actually felt "What a waste of time!", because the whole thing (driving from Toronto to Peace Bridge and the wait at both sides) had taken more than six hours! The agent was quite funny when he explained that I was not "supposed" to leave and come back to Canada by air until I had got the PR card. He then said "it's not really because of us. It's the airlines that will refuse you boarding when you say you are a PR and show them the COPR, which they don't consider secure enough. But on the other hand, since you already have an eTA and there is no visa in your passport, if you don't say anything about the PR, they won't be able to know. I am not suggesting that you should do anything but you can figure it out. But I can tell you that Canada does not refuse entry to citizens and PRs." I guess this is a useful piece of information for people from visa-free countries.
After that we had a nice lunch at Wind Sushi and I drove back to Toronto. The traffic was horrible!
Today I got a new SIN and opened a second Tangerine account. I already had one with my old SIN. So I referred the new me with the new SIN and both of me will get $50. HAHA!
Please feel free to use this Orange Key (50249261S1) if you also want to open an account at Tangerine. It's completely free and you will get 50 CAD when you have deposited 200 CAD and kept it there fore 24 hours. It also offers 2.4% interest rate for its savings account.
Also, if anyone's interested in other referrals (Turo, Questrade, Airbnb), let me know!
Forgot to mention that I have been airbnb-ing my 2-bedroom apartment. I already have a roommate and that lowers my rental cost from 1,700 CAD to 750 CAD. I also offer my own bedroom for 80 CAD a night - a rather high price because I still plan to sleep in my bed for most of the time - as well as a single bed in the living room for 30 CAD a night. The demand for the latter is really high. As for the former, if someone is willing to pay 80 CAD a night, I do mind sharing my roommate's bed or sleeping at my colleague L's place or in the office.
I did have to invest about 2,500 CAD to furnish both bedrooms. (I got the single bed and most other furniture for the living room for free.) I also have a profit-sharing scheme with my roommate so that she is also incentivized to welcome airbnb guests and to share her bed with me.
Also, I have got quite a few LinkedIn inquiries from companies in Canada, including Foodies and Shopify. It seems that once you are in Canada, finding a job can be very easy.
I have a doubt... I am at the stage of getting my ECA... I've my Masters in Computer science and Engg from a reputed institution in India. I've 1 yr experience in Software Engineering and 3 yrs experience in Banking. I don't have my MBA. Will it be difficult to find a job related to banking and finance in Canada???
Not sure about banking or finance. The demand for people with coding skills is high enough though.
Congratulations! @axolotl. I found this post via your signature from your CPC Ottawa thread. Your posts are a great read and refreshing take. Congratulations again.
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