[AtlantaEng]

I have grown frustrated searching forums for someone in my situation. So I will ask my questions and hope I don't get any "well it depends answers." I would just like the best way to take care of each situation.

My Situation
The company I work for has been awarded a contract with the NZ highway administration. I will be moving there next year (in October or November) to live for 4 years. My company has no office in New Zealand or even anybody living in another country. I am the first to go.

I plan on staying as a US Citizen

I plan on renting in North Shore City, Auckland. Buying a home will be a different subject later on.

Moving Goods
I will have 20ft or 40ft shipping container going to NZ with my belongings. I assume that I want to load up with everything that I can while still in the US (computers, cell phones, clothes). Are there any rules about what I can bring in that container? Will they ask question if I have bags full of new jeans, new laptops, etc. Will I have to pay taxes on any of the stuff in the container?

Money
I own a house in the US and have other US debt. I would think that I want to be paid in US Dollars so that I can pay my mortgage and pay off my student loans and credit cards in USD. Then move over any money that I need to live on in New Zealand. What is the cheapest way to move money from USD to NZD? I will change US banks if I have to. I will ask to get paid in NZD if I have to. What would be cheapest? Should I use Amex, Visa, Mastercard?

Credit
Does the NZ credit system work like it does in the US? If it does, I will have no credit score in NZ, right? How am I going to buy a car when I get there. I am only 24 years old and with everything else going on I certainly will not be able to pay cash for one.

Taxes
My income is lower than the US$84,xxx max for the foreign earned income credit. Where do I pay taxes? From the 100 threads I have read on this, I gather that I pay NZ taxes and claim foreign income credit in the US. What is the ideal way to pay the least amount of taxes? Would it be to spend at least 30 days in the US per year so that I don't qualify for working outside of the US for 330 days? Can I get around the US and/or NZ taxes?



I am still trying to put together what I want to ask for from my company. My proposal will be based off of what I can learn in the next few weeks.

Any other Ideas? Stuff that you wish you would have asked for?

[JandM]

Hello, and good luck with all your arrangements.:)

When the NZ residents come online in their daytime, you're likely to find you get some answers.

[Spudgun]

Hi. I would suggest the first thing your company needs to do is get legal advice from an expert in structuring international businesses. I doubt it’s as simple as you moving to NZ and setting up. You need to consider things like tax & legal status, visa requirements, insurance, liability etc.

http://www.immigration.govt.nz/migrant/stream/work/relocatingwithemployer/

This is an example of the requirements from the website
"When you apply you will have to supply us with a letter from the business’s chief executive officer that gives the following information:

• the name and location of the business intending to relocate to New Zealand
• why it is relocating, and how it will benefit New Zealand
• a statement confirming that the relocated business will operate within all relevant New Zealand employment and immigration law
• your current role in the business
• your intended role in the relocated business
• why you are considered to be a key staff member
• an explanation of why you are not eligible for residence under any of our other immigration categories.

You and your employer will need to supply proof of the business’s current operation. This can include, for example, original or certified copies of:

• the business registration
• company accounts or tax returns and
• any other documents or evidence that show how the business is currently operating.

We will check that the business has the support of New Zealand Trade and Enterprise in the relocation of the business."

Hope that helps.

[James 1077]

As someone who deals with company tax affairs and has seen this sort of thing before I can only recommend that your company passes this all by professional advisers.

There are so many headaches to employing people overseas that can give rise to adverse tax consequences that it is important to structure things right.

My advice is, that if you have any influence, you recommend that your company approaches its auditors / tax advisors (if they are global offices - otherwise get in touch with one of the bigger global firms) to deal with the tax consequences

In response to your questions:

Moving Goods
I will have 20ft or 40ft shipping container going to NZ with my belongings. I assume that I want to load up with everything that I can while still in the US (computers, cell phones, clothes). Are there any rules about what I can bring in that container? Will they ask question if I have bags full of new jeans, new laptops, etc. Will I have to pay taxes on any of the stuff in the container?

The rules are that everything must be personal possessions for personal use. You will need to pay import duties and GST (which is like a sales tax at 12.5%) on anything that is new and unused. If it is for personal use then the best thing to do is to use it before it goes in the box!

If the goods coming over are company property then they will need to pay import duties and GST on them when they arrive in New Zealand. If the company registers for GST (which it should be doing as it is likely to be legally required to do so) then the GST is only a timing issue and not a cost as they'll be able to reclaim it.

Money
I own a house in the US and have other US debt. I would think that I want to be paid in US Dollars so that I can pay my mortgage and pay off my student loans and credit cards in USD. Then move over any money that I need to live on in New Zealand. What is the cheapest way to move money from USD to NZD? I will change US banks if I have to. I will ask to get paid in NZD if I have to. What would be cheapest? Should I use Amex, Visa, Mastercard?

This is slightly more difficult as it depends on your situation. It is normally cheapest to move large sums of money and to use specialist providers to do this for you rather than banks.

If you only want to transfer living expenses then your best bet would probably be to find a bank that has a relationship with one of the NZ banks. I think that there are a few - searching the forum may come up with something.

Your best bet though would be to arrange with your employer for a split salary where you get US$X paid into your US account and NZ$X paid into an NZ account. That way you aren't at too much risk of exchange rate movements and don't have any exchange fees to absorb.

Credit
Does the NZ credit system work like it does in the US? If it does, I will have no credit score in NZ, right? How am I going to buy a car when I get there. I am only 24 years old and with everything else going on I certainly will not be able to pay cash for one.

Credit in NZ runs on a credit scoring system as in the US. I'm not sure how it works internationally as when we moved we didn't want any credit in NZ so didn't look into it but I imagine that it should be transferrable if you ask the credit agency for a copy of your record.

On the car-front you can get cars pretty cheap over here if you just want a run around. Otherwise you could ask for a company car! :)


Taxes
My income is lower than the US$84,xxx max for the foreign earned income credit. Where do I pay taxes? From the 100 threads I have read on this, I gather that I pay NZ taxes and claim foreign income credit in the US. What is the ideal way to pay the least amount of taxes? Would it be to spend at least 30 days in the US per year so that I don't qualify for working outside of the US for 330 days? Can I get around the US and/or NZ taxes?

Firstly you can't get around taxes so let go of that idea! NZ and the US have a tax treaty that enables the two countries to share information about taxpayers so you will be found out!

As you will be living and working in New Zealand your company will be required to run a New Zealand payroll and deduct NZ tax from your salary.

From a US perspective I can't answer for certain but, from what I have picked up, if you earn under the US$84k threshold then you don't need to pay any US tax on your foreign income (any Americans out there are welcome to contradict though). All you therefore need to worry about is therefore NZ tax and that is mostly taken care of through the payroll your employer will need to operate in New Zealand. If you were earning over the threshold then you would have to pay tax in the US as well but any New Zealand tax paid would be credited against this.

Note that you will become New Zealand tax resident even if you aren't a New Zealand citizen - the rules are generally around amount fo time spent in any one country with some tie-breakers around where you / family live. As you'll be working in New Zealand for the majority of your time you will be tax resident in New Zealand.


Finally, and as mentioned above, it would make lots of sense for your company to get proper professional advice on this as the contract will make them liable to paying New Zealand tax and having people on the ground in New Zealand will also mean that they have other obligations as well (around Payroll / ACC / FBT). The penalties for getting it wrong are pretty severe! Tax advice on your position would also probably come out of this general advice to your employer.

[James 1077]

Oh, and I forgot to say "Good luck!".

International experience is great and at your age it is a great time to be going overseas to work for a few years!

[BkyMonster]

I'll answer what I can...
Credit: NZ credit works differently than US credit. There is no building positive credit, just negative credit. As you won't have negative credit you shouldn't have issues with buying a car, renting a house as long as you have suitable proof of income etc. The credit markets do not carry over either. I doubt anything like an Equifax report will be helpful here.

To have your goods shipped you need to have a work permit longer than 12 months or residence when the goods arrive. Other than that I think info has been covered.

I have heard that Bank of America and Westpac have an agreement in that you can get BofA money out of Westpac ATMs for no fee and at the current exchange rate. For moving larger sums I'd recommend a transfer service.

You will certainly want to maintain a US bank account with funds to pay your debts so if you can get a split paycheck that sounds ideal for your situation.

[IanW99]

...
Moving Goods
I will have 20ft or 40ft shipping container going to NZ with my belongings. I assume that I want to load up with everything that I can while still in the US (computers, cell phones, clothes). Are there any rules about what I can bring in that container? Will they ask question if I have bags full of new jeans, new laptops, etc. Will I have to pay taxes on any of the stuff in the container?
...


You've pretty much already been given sensible answers to your questions, but would just like to mention that a lot of electrical appliances from the U.S. don't work in NZ as the voltage and frequency are different.

Some devices will work without any problems, some will work with the use of a transformer and some are probably not worth bringing at all.

A good introduction to the subject can be found on this US Vs NZ Electronics (http://www.emigratenz.org/forum/showthread.php?t=591) thread.

Ian

[BlueDevil]

We just moved this year.

For four years, I would bring anything you will use. Things are generally more expensive here and the quality is probably not what you are used to. We didn't bring a lot and regretted it. It was easy to furnish the house on TradeMe however. Definitely bring a gas BBQ if you are used to one, they have standard cylinders (we didn't bring ours and they are 1.5x as expensive here).

They didn't give us a hard time about anything in the container except a neck pillow of my wife's which had buckwheat kernels. Bring a transformer and your electronics. For a laser printer/computer setup (if you have one at home or will have a home office) get a transformer/voltage regulator. In general buy any electronics you think you will use in the US. Bring a GSM phone. Do not bring complicated lamps (simple ones can just have their bulbs replaced, anything with a dimmer or multiple settings will fry).

For currency transfers some people use XE currency or other organizations. A pain to set up, but seems reasonable afterwards.

Credit card will be no problem with a letter from your employer, they will start you out on a low limit compared to the US.

Taxes are complicated as was pointed out.

Good luck. If you have specific questions, send me a message.

[dilanium]

If you open a Bank of America Bank account you can withdraw at Westpac ATMs free of charge, you just get the current exchange rate. The only drawback is you can only withdraw $1300NZD (I think) a day.

[jess]

Taxes - my situation is similar to what yours might be...

I work for a US company with no offices in NZ and am paid in US$. I kept my US account open so I could have my pay direct deposited. I access that account at stores using my US Visa check card. To get cash I use ATMs or, for larger amounts, a bank transfer to my NZ account.

I pay all my taxes to NZ. I am a "provisional tax payer" which means I pay in advance in 3 lump sums throughout the year - they send me reminders - and file using form IR3.

For the US, I fill out the regular federal forms by June 15 (including a letter stating I'm living overseas and thus qualify for an extension through June 15) and take the foreign earned income exclusion to not pay any taxes in the states. I used the form available in IRS Publication 54 to have my withholding stopped. (Social Security continues to come out of all my paychecks though.)

I fill out the non-resident form for the state of Virginia as well. (Some states do not require you to file at all, but my company is based in VA, and VA requires me to file as a non-resident earning income from VA.) VA honors the federal foreign earned income exclusion from Federal taxes, so I end up paying $0 in VA too.



The first year's taxes required a little more math, because I had to separate all earnings I made while still living in the states (for which I had to pay US taxes but no NZ taxes) from earnings I made after moving to NZ (for which I paid NZ taxes but not US). Also during the first year, I did not pay NZ in advance. All taxes were paid on the final due date. (This is not an option in subsequent years, as far as I understand.)

We had a tax specialist the first year only, but honestly I feel like everything he did I could have done myself by going step by step through Publication 54. That's just my opinion, and maybe it's easier to say in hindsight. A tax specialist is a great idea, though the one we had in NZ was very expensive. If you can get your company to provide tax help, that would be ideal.