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Seth

Keeping your Job in SA while living in CA

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Seth

Hi all,

I have the privilege of having a really cool boss here in SA. As I know it's extremely difficult to get a job in Canada from South Africa, he said that he would be willing to support me for a couple of months in Canada (as my job mainly involves computer-based work). Now, the amount that I will make when converted to CAD isn't much, but it will supplement my savings as I look for a better job in Canada.

What are the tax implications for this? Will I be losing too much salary to various regulations and conversion fees etc? Should I rather go straight to McDonald's for a job when I land?

I'm generally a rather risk-averse person, and like to have some level of financial security - so this is all very daunting for me.

Any advice?

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MaryJane

As you said, it’s a supplement. So however big or small it is, after conversion, should help.

With regards tax, I’m assuming he is keeping you on the payroll and you will get taxed on this income in SA.

When you become Canadian tax resident, you get taxed on your worldwide income. So you would need to declare this income. You should be able to claim the taxes you paid to avoid getting this income double taxed in Canada though.

 

 

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Jules

What MJ said

😀

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LidiaS77

Hi @Seth,

We were/are in the same situation - we kept our jobs in SA while living in Canada as permanent residents. It worked out really well for us. We were still on the SA company payroll for the first few months (with PAYE tax being deducted) after landing in Canada and just had to declare this on our first year's tax returns in Canada. The CRA asked for extra proof that we did indeed pay tax in SA but there doesn't seem to be any problem, they accepted the fact that we paid tax to SA for that period. After that our SA company started paying our salaries directly into our Canadian bank accounts (the Canadian dollar equivalent to avoid the exchange rate fluctuations) without withholding tax, and then we started paying tax on those salaries to Canada only. If you work as an independent contractor in this way you should just be aware of some additional rules e.g. registering for and collecting GST if you earn above a certain threshold (in BC at least and only for Canadian companies, but as far as I know you still have to register even if you work for a foreign company). Of course it depends greatly on your lifestyle and how much money you have saved up etc. but we were able to live comfortably and travel on our SA salaries. I would say that everything isn't automatically much more expensive in Canada (except housing maybe) and if you try you have lots of opportunities to live cheaply and save. Like I said though, it does depend on what you are comfortable with and if you are willing to give up some conveniences. You are welcome to ask or PM me if you want more information.

Edited by LidiaS77
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