Private ruling: Exempt foreign income
Date of advice: 4 September 2019
Published: November 2019
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is your foreign employment income exempt from taxation in Australia under section 23AG of the Income Tax Assessment Act 1936 (ITAA 1936)? | A1: Yes. It is accepted that you meet the relevant criteria identified in section 23AG of the ITAA 1936, and the income referable to your foreign employment is exempt from income tax in Australia. Further information can be found by searching 'QC 16739' on ato.gov.au.

Relevant facts and circumstances: You are an Australian resident You are employed. You took a secondment to another organisation. You work in Country X. Both employers are delivering official development assistance. You are paid your salary by the first employer. You are also paid a monthly mission allowance by the second employer in local currency to cover living expenses whilst on your overseas mission. The funding for your salary and monthly mission allowance was funded from the Department of Foreign Affairs and Trade. You have been engaged in continuous Foreign Service for a period of more than 91 days. You are liable to be taxed in Country X on your income. There is no double tax agreement between Australia and Country X. You travel on an Australian passport.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 23AG | Income Tax Assessment Act 1936 subsection 23AG(1) | Income Tax Assessment Act 1936 subsection 23AG(2) | Income Tax Assessment Act 1936 subsection 23AG(1AA) | Income Tax Assessment Act 1936 paragraph 23AG(1AA)(a) | Income Tax Assessment Act 1936 paragraph 23AG(2)(a) | Income Tax Assessment Act 1936 paragraph 23AG(2)(b) | Income Tax Assessment Act 1936 paragraph 23AG(2)(c) | Income Tax Assessment Act 1936 paragraph 23AG(2)(d) | Income Tax Assessment Act 1936 paragraph 23AG(2)(e) | Income Tax Assessment Act 1936 paragraph 23AG(2)(f) | Income Tax Assessment Act 1936 paragraph 23AG(2)(g)