Private ruling: Assessability of foreign income
Published: June 2013
Ruling period: Year ended 30 June 2013.
Date scheme commenced: 1 July 2012.

Ruling: Question and answer: | Is the income you derive from services provided to International Organisation X, where the work is performed in Australia, assessable in Australia? | No.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are an Australian resident. You are currently employed as an employee of Organisation X. Your services are required for a certain amount of days during the period of your employment. Your employment contract states that you receive a certain amount of money per day worked. You work remotely from home via the internet. Organisation X is listed in the Specialised Agencies (Privileges and Immunities) Regulations 1986 .


Reasons for decision: Summary: Subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that the assessable income of an Australian resident includes ordinary income derived from all sources, whether inside or outside Australia, during an income year. Subsection 6-15(2) of the ITAA 1997 provides that, if an amount is classed as exempt income, then it is not assessable. Subsection 6-20(1) of the ITAA 1997 provides that ordinary income is exempt if it is made exempt by a provision of the ITAA 1997, or the Income Tax Assessment Act 1936 (ITAA 1936), or another Commonwealth law. The International Organisations (Privileges and Immunities) Act 1963 (IO(P&I)A 1963) is a Commonwealth law under which an international organisation, and its employees, may be receive an exemption from tax. Some of the international organisations which this exemption applies to are listed in Specialised Agencies (Privileges & Immunities) Regulations 1986 (SA(P&I) Regulations 1986). Organisation X is listed in the Regulations as an organisation which this exemption applies to. As you are an employee of Organisation X, the income that you receive from Organisation X is exempt income under section 6-20 of the ITAA 1997 and it is not assessable income in Australia under subsection 6-5(2) of the ITAA 1997.