Well, winter seems well and truly here for most of us. Please take time to read through this month's newsletter as it has some important information for all Network Clients. We also have some good holiday packages to Australia from our service partner Sure Circle Travel. If you are interested in any of the airfares/packages please let us know.

Temporary Tax Exemption for Foreign Income for New Migrants to New Zealand

From 1 April 2006, people arriving to live in New Zealand may qualify for a temporary tax exemption on most of their foreign income. This temporary tax exemption is available to those who arrive in New Zealand on or after 1 April 2006 and are new migrants or returning New Zealanders who have not been resident for tax purposes in New Zealand for at least 10 years prior to their arrival in New Zealand.

The exemption can only be granted once in a life-time.

The exemption

The temporary tax exemption for foreign income is for four calendar years (up to 49 months). The exemption starts on the first calendar day of the month you arrive in New Zealand and is valid until the last calendar day of that month four years later. For example:

You arrive in New Zealand on 22 April 2006 and have one or more types of foreign income that are temporarily exempt for taxes in New Zealand (see list below). You are eligible for the exemption counting from 1 April 2006 until 30 April 2010, which effectively is 49 months.

Exempt types of foreign income

Types of foreign income temporarily exempt from tax in New Zealand:

• Dividends

• Interest

• Bonuses from a previous job overseas even if received after arriving in New Zealand

• Controlled foreign company (CFC) income - under New Zealand's CFC rules.

• Foreign Investment Fund (FIF) income, including foreign superannuation - under New Zealand's FIF rules.

• Non-resident withholding tax on foreign mortgages

• Approved issuer levy on foreign mortgages

• Taxation arising from employee share options

• Accrual income from foreign financial arrangements

• Certain trust income

• Rental income derived offshore

• Royalties derived offshore

• Gains on sale of property derived offshore

• Offshore business income that is not related to the performance of services.

When your tax exemption ends after four years (up to 49 months), you must declare all foreign income on your annual income tax return (IR3 for individuals).

These types of foreign income are not tax exempt in New Zealand:

• Income derived from overseas employment performed while receiving the exemption

• Business income relating to services performed offshore.

If you have any of these types of income, you must declare them on your annual income tax return (IR3 for individuals) from the date of your arrival in New Zealand.

To be eligible

• You must have arrived in New Zealand on or after 1 April 2006, and

• You must not have been a New Zealand tax resident at any time in the past 10 years prior to your arrival date in New Zealand.

• This is a once-in-a lifetime exemption eg you can't extend your tax exemption or renew it after its expiry date

• You or your partner cannot receive Family assistance while being tax exempt from foreign income, but will have to determine which is better for your situation, for example
  
  You and your partner have $1000 worth of foreign interest per year, but are eligible for $5000/year Family assistance in New Zealand if you do not claim the exemption for foreign income. In this situation, it is in your family's best interest to waive the exemption and pay New Zealand tax on the foreign interest and receive Family assistance. You can inform us of your foreign income on your annual income tax return (IR3 for individuals).
  
  
  

For more information visit www.ird.govt.nz

Specials from Sure Circle Travel for month of June

Please note: We suggest that you get quotes from other travel agents when booking your immigration flights. Please let us know of your quoted prices and we will see if we can match or better them!

Melbourne Murray Explorer Self Drive Package

PRICE: R2734 Per Person

Valid until 31 March 2007

Prices subject to Terms & Conditions

Includes: Land Only

• 6 Nights Accommodation at 3* Choice Hotels on a Room Only Basis

• 7 Days Car Hire – 3 Door Hatchback

• Suggested Itinerary as follows:

Day 1-2:

Melbourne – Mildura (540km)

Overnight Pink Choice Hotel Comfort Inn Mildura

Day 3:

Mildura – Swan Hill (220km)

Overnight Yellow Choice Hotel Comfort Inn Campbell

Day 4:

Swan Hill – Echuca /Moama (158km)

Overnight Pink Choice Hotel Comfort Inn Moama

Day 5:

Echuca – Albury/ Wodonga (238km)

Overnight Yellow Choice Hotel Comfort Inn and Suites Georgian

Day 6:

Wodonga – Wangaratta (70km) or Benalla (112km)

Overnight Yellow Choice Hotel Benalla, Benalla

Super Sydney on Cathy Pacific

PRICE: R7966 Per Person

Valid until 31 Jul 2006

Prices subject to Terms & Conditions

Includes:

• Return Economy Flights to Sydney via Hong Kong on Cathay Pacific

• Return transfers

• 4 nights Accommodation at the Sullivans Hotel on a Room Only Basis

Durban add-on R 595
Cape Town add-on R713
Port Elizabeth add-on R 713
Blocked dates 24 May

Explore Brisbane

PRICE: R8804 Per Person

Valid until 30 Nov 2006

Prices subject to Terms & Conditions

Includes:

• Return Economy Flights to Brisbane via Singapore on Singapore Airlines

• Return transfers

• 5 nights Accommodation at the 3* Ibis Hotel on a Room Only Basis

• Half day Brisbane Morning Sights Tour

Durban add-on R 689
Cape Town add-on R588

Melbourne and Perth Combo

PRICE: R9079 Per Person

Valid until 13 Jun 2006

Prices subject to Terms & Conditions

Includes:

• Return Economy Flights to Perth and onto Melbourne on Qantas Airways

• 3 Nights Ibis Hotel Perth on a Room Only Basis

• 3 Nights Batmans Hill Hotel Melbourne on a Room Only Basis

Durban add-on R529
Cape Town add-on R 702

Blockout Date 24 May

For any of these specials or for any other packages or flights please contact Network Migration Services for best deals or quotes.

Tips for jump-starting your Job Search

When a person/family decides on the life changing move to a new country one of the most important aspects of the move is finding employment as soon as possible once landing in their country of choice. To this side it is paramount that you begin your job search before leaving South Africa. Our relocation division has a Job Search consultant who will work in partnership with you to give you the tools for a successful job search. Network clients also have a range of workbooks that will assist you in planning, researching into your chosen field, CV templates for the New Zealand and Australian markets, tips on conducting yourself in an interview through to the culture of the workplace in New Zealand or Australia. We suggest that you start your job search 3 months prior to departure. This way, you will have gained a good understanding for the market you are entering and also more about the type of company you would like to work for.

Please also note that when gaining employment for the first time in a foreign country be prepared to start in a more junior position than you had in South Africa.The starting salary may also not be in line with what you were getting paid in South Africa but once you have established yourself in the market, salary will fall into market expectations and within 3 years you can expect to be in the top 30% earning bracket.

Please visit our Hot Jobs link for an updated list of current vacancies.

Please note that it is the client's responsibility to advise Network Migration Services of all changes in their circumstances and changes in contact details as soon as possible. If you do not wish to receive our monthly newsletter please email us with the subject title as REMOVE FROM MAILING LIST.

Until next month, keep warm

Kind regards

The Team at Network Migration Services