Working remotely from Dubai - taxation

[wannabedigitalnomad]

Hello,

I am a Canadian citizen currently employed by a Canadian company that has offices only in Canada and operates in the field of commodity trading. My role allows me to work remotely from anywhere in the world, and I am considering relocating to Dubai.

If I sever all residential ties with Canada — including closing Canadian bank accounts, giving up my provincial health insurance and driver’s license, and not owning or leasing property or having dependents in Canada — would I still be considered a Canadian tax resident? I plan to spend approximately nine months of the year outside of Canada, returning for short visits (2–3 months total annually), split over two trips of 4–6 weeks each to visit my parents.

Additionally, if I open a bank account in Dubai and my employer deposits my salary into that account, would they still be required to withhold Canadian income tax or make any other deductions?

Thank you in advance for your guidance.

Best regards,

 

[canuck78]

Hello,

I am a Canadian citizen currently employed by a Canadian company that has offices only in Canada and operates in the field of commodity trading. My role allows me to work remotely from anywhere in the world, and I am considering relocating to Dubai.

If I sever all residential ties with Canada — including closing Canadian bank accounts, giving up my provincial health insurance and driver’s license, and not owning or leasing property or having dependents in Canada — would I still be considered a Canadian tax resident? I plan to spend approximately nine months of the year outside of Canada, returning for short visits (2–3 months total annually), split over two trips of 4–6 weeks each to visit my parents.

Additionally, if I open a bank account in Dubai and my employer deposits my salary into that account, would they still be required to withhold Canadian income tax or make any other deductions?

Thank you in advance for your guidance.

Best regards,

Would depend on your ties to Canada and how your employer processes your payroll.

 

[wannabedigitalnomad]

Would depend on your ties to Canada and how your employer processes your payroll.

I am ready to do whatever it takes to cut all ties, as mentioned close bank accounts etc. and how should the payroll be processed?

 

[canuck78]

I am ready to do whatever it takes to cut all ties, as mentioned close bank accounts etc. and how should the payroll be processed?

You would have to become a contractor and be self-employed. Your current company could then choose to hire you.

 

[wannabedigitalnomad]

Wouldn’t that essentially lead to the same outcome — where I still have to pay tax in Canada, just in the form of corporate tax instead of personal income tax? Could you please clarify how the mechanics work and why switching to contractor status would remove the Canadian taxation?

 

[canuck78]

Wouldn’t that essentially lead to the same outcome — where I still have to pay tax in Canada, just in the form of corporate tax instead of personal income tax? Could you please clarify how the mechanics work and why switching to contractor status would remove the Canadian taxation?

Your business would be located/registered in Dubai not Canada.

 

[wannabedigitalnomad]

when my dubai company is sending the bill to my "employer" on a montly basis would my dubai company need to include canadian and provincial sales tax?

 

[canuck78]

when my dubai company is sending the bill to my "employer" on a montly basis would my dubai company need to include canadian and provincial sales tax?

If you need accounting advice hire someone

 

[wannabedigitalnomad]

If you need accounting advice hire someone

i mean, isnt the goal of a forum to ask questions and have dialog with other people? + maybe you could actually give a full answer rather than sprinkle bits of information left and right. but you do you little b!tch