Hey guys, I’ve been working at my current job for around six years now. It’s a small company, super tight-knit, which is cool because we all know each other pretty well. I’m thinking about making a big move out of Canada to a place where they don’t tax your foreign income. Panama seems like the dream spot for me with its awesome tax system, great weather, and reasonable cost of living.
But here’s the catch: my company isn’t really set up to deal with having an employee permanently based overseas, especially when it comes to handling payroll, taxes, and all that legal stuff. So, I’m considering switching things up and becoming an independent contractor instead of a regular employee. I figure this might make things way easier for my employer to manage from a compliance perspective.
I know the Canadian Revenue Agency (CRA) has its own rules about distinguishing between employees and contractors, but I’ve heard that once you’re no longer a tax resident of Canada, a lot of those concerns kind of fade away. Since I won’t be earning any income from Canadian sources and won’t owe any Canadian Pension Plan (CPP) or Employment Insurance (EI) payments, there shouldn’t be much for the CRA to come after me for.
So, my question is: is this plan actually doable? Has anyone been through something similar and can offer some advice on what I might be overlooking or not considering? It’s a big step, and I want to make sure I’m not missing anything important before I dive in.