Working as an EXPAT

Well the opportunity has come for me to work in Africa/Middle East as a contractor/consultant and not be tied to a company. This presents itself with the opportunity to make a lot of money. The offer states the company will pay my taxes in the country I work in, but I am responsible for my taxes in Canada, no problem.

Any sugegstions on how to go about minimizing the taxes I would pay in Canada while still being legal? Should I register as self employed/incorporate/ or just become a non resident? I don't want to get ride of my drivers license or bank accounts though as I would like to keep my money in Canada. Basically, I know I am going to have to pay taxes, I would just like to minimize how much I am getting hit by the government.

Hoping to when I get home from working abroad with my current company out of Canada to talk to a tax lawyer about this to see what is the best route for me going to work in Africa/Middle east as a contractor would be best for me tax wise.

Any help or advice would be appreciated.

Thanks

I would recommend becoming a non-resident. This status will allow you to pay no taxes on your contract amount. You will still have to pay taxes on any income coming from Canadian sources, such as interest on savings accounts, property tax, etc...
No more valid health insurance card until you become a resident once again

You will be able to keep your bank accounts without problem, however, since you will be a contractor in the Middle East or Africa, it seems more appropriate that you open another bank account that will be more accessible to you daily in the region (although it is safer to keep the bulk of your money elsewhere, such as UBS, and then use the African/ME bank for living expenses).

As for the driving license, it will not expire or be taken away (they might ask a few questions if you come back to renew it a few years later though, but no big deal, nothing illegal here). It will be valid in the country you travel to but should still get a local license, as it imposes more credibility (although sometimes some foreign ID will get you out of some annoying attempts from local police to obtain a bribe).

I hope I've provided reliable info.
Good luck to you and your international career

Clearly, making yourself self-employed is the way to go. As a consultant, you can claim a number of expenses as deductions from your taxable income. It is important to find out if there is a tax agreement between Canada and the country that you will work in and how your tax bill will, then, be handled by the company paying you. I would suggest that you determine what governement initaitives or programmes exist that could benefit you, perhaps as a Ltd. company doing business abroad. Remember, you are technically bringing money into Canada (eventually) and, so, based upon microeconomic and macroeconomic theory, you are benefiting the Canadian economy to a limited extent ("Doing your part"). The most important thing to remember is that taxation is multi-teired in Canada, so you must consider your overall tax savings on a municipal, provincial and federal level. Each requires consideration and attention. I hope that I have been of help to you. Roberto.