Resource: Worldwide Personal Tax and Immigration Guide 2021-22

Resource: Worldwide Personal Tax and Immigration Guide 2021-22

Governments worldwide continue to reform their tax codes at a historically rapid rate. Taxpayers need a current guide, such as the Worldwide Personal Tax and Immigration Guide, in such a shifting tax landscape, especially if they are contemplating new markets.

The content is straightforward. Chapter by chapter, from Albania to Zimbabwe, we summarize personal tax systems and immigration rules in more than 150 jurisdictions. The content is current on 1 July 2021 with exceptions noted.

Keep up-to-date on significant tax developments around the globe with the EY Global Tax Alert library. Only some of the chapters in this Tax Guide reflect COVID-19 tax policy measures. The United Kingdom chapter provides information regarding Brexit. Readers should obtain updated information regarding Brexit before taking actions.

Each chapter begins with our in-country executive and immigration contact information, and some jurisdictions add contacts from our Private Client Services practice. Then we lay out the essential facts about the jurisdiction’s personal taxes. We start with the personal income tax, explaining who is liable for tax and, at some length, what types of income are considered taxable and which rates, deductions and credits apply. A section on other taxes varies by jurisdiction but often includes estate, inheritance, gift and real estate taxes. A social security section covers payments for publicly provided health, pensions and other social benefits, followed by sections on tax filing and payment procedures as well as double tax relief and tax treaties. The immigration sections provide information on temporary visas, work visas and permits, residence visas and permits, and family and personal considerations.

At the back of the guide, you will find a list of the names and codes for all national currencies and a list of contacts for other jurisdictions.

This resource is available through EY.com

Click HERE to go directly to their website to download the full report

 

2022 Automobile Allowance Rate 

2022 Automobile Allowance Rate 

Current 2022 automobile allowance rate

The automobile allowance rates for 2022 for trips made after January 1st, 2022 are:

  • 61¢ per kilometre for the first 5,000 kilometres driven
  • 55¢ per kilometre driven after that
  • Note that in the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.

Here is the CRA announcement of the 2022 mileage rates where you can read more.

Quick Guide: Selecting a company structure for your new business

Quick Guide: Selecting a company structure for your new business

How to Select a Business Structure

Choosing how you structure your business is one of the bigger decisions you’ll make as you set up your new business. The type of structure you decide on will depend on whether you want to run the business solely as a trade name, partnership, or with associates as a limited corporation. Learn more about each type of business structure, along with the advantage and disadvantages of each.

It’s important to keep in mind that you are not locked into the structure you choose. You can change how you structure your business as your business grows, so feel free to start off as a trade name or partnership, and switch to a limited corporation later. You can also move from an incorporation to a trade name or partnership.

Why Choose a Trade Name?

  • Also referred to as a sole proprietorship
  • A form of un-incorporated business that’s owned and operated by one individual/entity, with no legal distinction between the owner and the business
  • Business owner is fully responsible for all profits and losses
AdvantagesDisadvantages
One of the simplest forms of all business structuresNo ownership or protection of the business name
Low start-up costsBusiness owner has unlimited liability
Limited obligation after registrationMay be difficult to raise capital for the business as there are no shareholders/investors
Business owner is in direct control of decision-making and receives all profits associated with the businessLack of continuity in absence of owner
Potential tax advantage for the ownerBusiness cannot change ownership or continue without the owner

Why Choose a Partnership?

  • A form of un-incorporated business in which two or more individuals/entities combine their resources to form a company with the intent to make a profit
  • Structure is similar to that of a trade name, with the business owners fully responsible for all profits and losses
AdvantagesDisadvantages
One of the simplest forms of all business structuresNo ownership or protection of the business name
Low start-up costsBusiness owner has unlimited liability
Limited obligation after registrationEach owner responsible for and must assume the consequences of the actions of the other partner(s)
More than one owner allows for additional resources for investment
Multiple owners offers a broader management base

Why Choose a Limited Corporation

  • The most common form of incorporated business in Alberta
  • Protects the owners (shareholders) of the corporation from majority of liabilities
  • Allows shareholders to profit from the success of the corporation, without them being personally responsible for the debts, obligations or acts of the other shareholders of the corporation, except in rare circumstances
AdvantagesDisadvantages
Owners have limited liabilityMore expensive to organize and create than trade name or partnership
Ownership is transferrableBusiness will be closely regulated
Corporation is a separate legal entity and has the same rights, protections, and responsibilities under the law as individuals doSetting up as a corporation requires extensive record keeping and increased maintenance fees
Easier to raise capital through the sale of shares
Have ownership of the incorporated name
May be perceived as more stable than un-incorporated companies
Changing You Spending Habits

Changing You Spending Habits

It is every one dream being a millionaire and retiring with a healthy bank account, but how many people can actually achieve it? So few. This is largely due to lack of discipline in building up their retirement fund and poor spending habits. While building a retirement fund requires time, you can accelerate the process by making incremental but positive changes in your spending habits. Here are seven ways that you can change your daily lifestyle for more positive results in your spending habits:

1. Have you ever noticed how much time you spend sitting in front of the television? The longer you sit, the worse it is for your blood circulation. Besides, the time you free up can be used for more useful tasks such as teaching your kids or learning a new skill.

2. If you are an avid reader, use the public library whenever possible. There is no need to buy the latest books from bookstores like Borders unless it is in a category that does not fit into a public library. The public library will usually acquire popular titles after some times. Learn to be patient.

3. If you are a smoker, start reducing the number of cigarettes you smoke each day. Over time, you may be able to quit smoking completely. Besides saving money by not buying any more cigarettes, your health will also improve and this means a huge saving in your medical bills.

4. Use a bicycle if the destination is within 30 minutes by car. This helps promote blood circulation in your body and also reduces environmental pollution. You can also save on gasoline and parking fees.

5. Dine at home more frequently. You can experiment with different recipes and save some money at the same time. In addition, you are honing your cooking skills and this could be very useful for the home dining experience.

6. Bring your own coffee to office. Many people like to drop by a Starbucks or similar coffee outlet and end up spending a few dollars or more on a cup of coffee. You can potentially save many dollars each week just by making your own coffee at home and bringing it to your work place in a Thermos. Besides, who knows, it may taste better than the coffee from Starbucks! If you really cannot live without Starbucks coffee, consider getting a Starbucks rebate card. You can use the rebates to redeem free Starbucks coffee after you have accumulated enough points.

7. Do more walking than driving. If you can reach your destination within ten minutes by car, consider leaving the car behind and walk instead. You will save money on gasoline and parking fees. This can easily add up to a few thousand dollars a year.

These seven ways are a good start for changing unhealthy spending habits. However, you should continue to research and incorporate more healthy habits that contribute to the building of your retirement fund. By re-investing the money saved from using these tips, you will be many steps ahead of your peers and closer to your retirement goals.

Tips On How To Save Money

Tips On How To Save Money

Money is an essential element in every body’s life. It is the one that we exchange to get all the necessary things in life. And that is exactly the reason why we work all day and sometimes night. Since the flow of money in one’s life is not uniform, it is only prudent to save some money for the crunch days. Economics permits one to spend his/her money in any amount as he/she wishes. But how rationally one could plan so as to maintain a minimum level of backup in any given day is directly linked with his/her ability to save.

In daily life, even if we know that we are spending money to buy things we need, most of us tend to over see the fact that more than 50% of the spending is for purposes that are quite unnecessary or those expenditures can be avoided without affecting one’s basic life style. Exactly this is the point from where one should start thinking of saving money.

Distinguish between and clearly understand your needs and wants. Needs are those things one require to sustain his/her basic needs. Want on the other hand refers to anything that is not an absolute necessity but which presence enhances one’s way of life. For example, a car can be a need but a $40,000 SUV is a want.

It is a human nature to insist on the best and the biggest even if the same quality is available at a lower cost. Spending $100 in a posh restaurant when one can afford the same sumptuous meal at $20 or buying a $20 shirt with a $30 trendy label attached all belong to this category of “keeping up with the Joneses”. A bit of intelligent spending here can save a lot.

It is a good idea to try a commodity and get a feel of it before actually buying one. Because there is no point in buying something you may never use or hardly use. Such an analysis is relevant especially when the item under consideration is a costly one. Rent one, borrow one, and try one out before making the final call.

Mortgages can easily be the biggest single expense most families have in their monthly budget. Here, zeroing on the best deal is where the trick lies. Calculated comparisons can make a difference of few thousand dollars in the entire deal. Another big expense is linked with the vehicles a person owns. One should see if he/she is getting the best deal on the maintenance, insurance and repairs.

True, food is a need as well as a recurring expense. Keeping a check over the money spend on food – to a necessary extend – can make a big difference in the money one could save at the end of the month. Plan food purchases in advance, go for generics or store brands and stock up the items that you regularly use when available on sale.

Another expenditure that drains a lot of money is one’s fascination for clothes. Unlike electronic goods, the price of clothes is continuously on an upward spiral. Hence it is a good idea to buy quality clothes that lasts a longer period. Such clothes are better than the ‘throw away’ types. The cost of clothes is not going to come down either. Therefore, buying in advance for a season ahead is a logical correct step. But never over do it. Getting clothes for 5 years in advance is stupid!

Telephone is a common thing in every house hold. This is one department where money drains like an open tap. Though local phone service has a fixed price long distance calls matters. Shop around to find out the best deal as far as the service provider is concerned. Keep in mind, a saving of $16.75 a month can add up to $200 a year.

If you are a travel addict, travel expenses can make a big difference if not having the right travel agent. Even if it is the same place, airline, hotel or car rental, the difference between two travelers can easily exceed $1000. Keep one’s eyes and ears open when hunting for a traveler.

Remember, saving money is not putting all the dollars that one earns in his/her savings account. But it is all about intelligently spending the bucks, at the same keeping a check on all the unnecessary expenses. Good Luck!