Private ruling: Temporary resident - foreign dividends
Date of advice: 2 June 2022
Published: August 2022
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1July 20XX

Ruling: Q1: Are the dividends you receive from a foreign company while you are a temporary resident included in your assessable income? | A1: No. Temporary resident You are a temporary resident if you: The Social Security Act 1991 defines an Australian resident as a person who resides in Australia and is an Australian citizen, the holder of a permanent visa, or a protected special category visa holder. In your case you are a temporary resident because: Foreign source income Those taxpayers who are temporary residents do not have to pay tax in Australia on most of their foreign income if they: Section 768-910 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that ordinary income and statutory income derived from a foreign source (excluding employment related income and capital gains on shares and rights acquired under employee share schemes) is not assessable in Australia when derived by a temporary resident. Therefore, when you become an Australian resident for tax purposes and continue to remain a temporary resident, any foreign source dividend income you derive will not be included in your assessable income.

Relevant facts and circumstances: You are a citizen of Country X. You entered Australia on a temporary visa. You are not a permanent resident of Australia. You are not a citizen of Australia. You are not an Australian resident for tax purposes. You intend to become an Australian resident for tax purposes. You do not have a spouse who is an Australian resident within the meaning of the Social Security Act 1991. You are a director of a foreign company. You will receive dividends from the company. You may receive remuneration from the company.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 768-910 | Income Tax Assessment Act 1997 Section 768-915 | Income Tax Assessment Act 1997 Section 995-1


hold a temporary visa granted under the Migration Act 1958 | are not an Australian resident within the meaning of the Social Security Act 1991 , and | you hold a temporary visa granted under the Migration Act 1958 | you are not an Australian resident within the meaning of the Social Security Act 1991, and | are an individual who is an Australian resident for tax purposes, and | satisfy the requirements of being a temporary resident.