Private ruling: Assessability of foreign sourced income
Date of advice: 9 March 2017
Published: August 2017
Ruling period: Year ended 30 June 2016 | Year ending 30 June 2017 | Year ending 30 June 2018 | Year ending 30 June 2019 | Year ending 30 June 2020
Date scheme commenced: 1 July 2015

Ruling: Questions and answers | 1. Is your foreign sourced income assessable in Australia? | No. | 2. Is your Australian employer required to withhold tax from your wages? | General advice provided

Relevant facts and circumstances: You are a non-resident of Australia for taxation purposes. You have been living and working in Country Y for a number of years. You work for two employers who are based in Australia. You perform your duties for both these employers in Country Y.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 995-1(1) | Income Tax Assessment Act 1936 Subsection 6(1)

Reasons for decision: Summary: Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that where you are a resident of Australia for taxation purposes, your assessable income includes income gained from all sources, whether in or out of Australia. However, where you are a foreign resident, your assessable income includes only income derived from an Australian source. You perform work for two Australian employers in Country Y. As a non-resident of Australia for taxation purposes your foreign sourced income is not assessable in Australia.