Private ruling: Assessable income - residency
Date of advice: 9 December 2024
Published: 28 January 2025
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is income you earn from your employment in Australia covered by Article X of the of the relevant Double Taxation Agreement between Australia and Country A (the DTA)? | A1: Yes. Your employer is wholly owned, controlled, and funded by Country A's Government. Therefore, Article X of the DTA will apply to you as you are you are providing services rendered in the discharge of governmental functions. | Q2: Is your income considered foreign exempt income and therefore not assessable income in Australia in accordance with section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A2: Yes. You are a citizen only of Country A, residing in Australia on a visa sponsored by your employer solely for the purposes of performing your employment duties. As such, Article X of the DTA provides that income you earn from this employment will be taxable only in Country A.

Relevant facts and circumstances: You were born in Country A and a citizen of Country A. You are employed by a XXXXX wholly owned, controlled, and funded by the Government of Country A. You have entered Australia on a temporary visa, sponsored by the employer. Your contract of employment in Australia dates from XXX 20XX to XXX 20XX. Your job requires you to work nighttime shifts in Country A (which is daytime in Australia). The period of a posting for an individual working for the employer is on average X years. When you have completed your assignment in Australia you will return to Country A. You are an Australian resident for taxation purposes.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | International Tax Agreements Act 1953 subsection 4(1) | International Tax Agreements Act 1953 subsection 4(2)