Private ruling: Double tax agreement
Date of advice: 14 January 2026
Published: 2 March 2026
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: XX January 20XX

Ruling: Q1: Is the income from your employment with an Australian University exercised outside of Australia in Country A exempt income under section 6-20 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes Article 15 of the Double Tax Agreement between Australia and Country A provides with the sole taxing rights to your employment income. Income derived by an individual who is a resident of Country A in respect of an employment is taxable only in Country A, unless the employment is exercised in Australia. Consequently, as a resident of Country A, your employment income while working in Country A is not assessable in Australia. Where income is not subject to tax in Australia by virtue of the provisions of a double tax agreement Australia has with another country, it is exempt income under subsection 6-20(2) of the ITAA 1977. Part 2-5 of Schedule 1 (Sch 1) of the Taxation Administration Act 1953 (TAA) covers Pay As You Go (PAYG) withholding obligations. Subsection 12-1(1) of Sch 1 of the TAA provides that an entity need not withhold an amount under section 12-35 of Sch 1 of the TAA if the payment is exempt income.

Relevant facts and circumstances: You are originally from Country A You moved to Australia some years ago. You were paid a PhD stipend. While undertaking your PhD you worked part time as a Research Associate/ Assistant as well as an Academic Tutor at an Australian University. You moved to city C in Australia in 20XX to be with your fiancée. Your fiancée obtained a job in Country A. You returned to Country A. You completed your PhD remotely from Country A. You have only returned to Australia briefly since leaving. You live and work In Country A. You are a tax resident of Country A. You work remotely from your home in Country A for the Australian University. You have lodged your Australia tax returns on the basis that the income from the Australian University is taxed as a non -resident of Australia for taxation purposes.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 6-20 | International Tax Agreements Act 1953 | Taxation Administration Act 1953, section 12-35 of Schedule 1