Moving from Dubai to Canada

[talker]

Hey guys!
I've made the difficult choice to live in Canada for next 3 years to get the passport.
I'm in ecommerce and I was incorporated in Dubai.
For simpler taxes, I've decided to close the Dubai company and incorporate in Canada!
Is this a good decision? What would you have done in my shoes?
Thanks

 

[Sols]

Yes, you are making the right decision.

The Dubai company is only worth keeping if‌ it has a genuine and primary place of business in UAE (or elsewhere outside of‍ Canada) and your involvement is purely that of a passive shareholder.

 

[talker]

Thanks for your fast feedback Sols!

I mainly dropship to the USA! So is⁤ a US company better than a Canadian?

I was thinking of getting professional tax advice,⁣ but not sure where I can find some tax professionals that are familiar to dropshipping⁢ and canadian tax law?

 

[Sols]

You introduce complications if you form a US company that‍ you don't have if you operate just as a Canadian company. So long as you⁠ can charge your customers in USD, get a bank account in USD, and only convert⁤ to CAD what and as needed, I'd stick with a Canadian company.

Consider US company⁣ if you run into sales tax problems or import tariffs that operating through a local⁢ company would solve.

Dropshippers are a dime a dozen these days. Shouldn't be︂ too hard to find someone who's had some experience with it. Check Legal500 for good︃ lawyers in corporate matters in your province/territory.

 

[talker]

Thanks Bro

 

[Mike Williams]

Why move from a low tax country to a high tax country? also the weather‌ is not good in Canada and the cost of real estate or renting is very‍ high. It certainly isn't the promised land.

 

[uranium]

In dubai⁠ he will live with a visa as long as possible. No permanent residency or citizenship.⁤
In Canada he can gain citizenship after living there for a couple a years.
But Canada comes with 15% tax rate.

 

[Mike Williams]

15% in Canadá? The small business tax rate? and another 35% - 53% in income‌ tax and then sales taxes, gas taxes, carbon taxes, clean energy taxes, cpp contributions, property‍ taxes. Canada is a very complicated and expensive place for taxes, like France etc. And⁠ to leave you need to pay capital gains on all unrealized gains.

 

[uranium]

You are right
Starting from 15 % to 33%
Not Worth it⁣ for business owners
Only for workers maybe