Private ruling: Residency and income
Date of advice: 22 February 2018
Published: June 2018
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 30 June 2016 | Year ended 30 June 2017 | Year ending 30 June 2018
Date scheme commenced: 1 July 2013

Ruling: Question and answer | Are you required to declare foreign source income in your Australian tax return for the period XXXX to XXXX? | No.

Relevant facts and circumstances: You are a temporary resident of Australia. You are a resident of Australia for taxation purposes. You were a temporary resident of Australia for the period XXXX to XXXX. You obtained permanent residency of Australia on XXXX. You had foreign sourced income during the period XXXX to XXXX.

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

Reasons for decision: Detailed Reasoning - Foreign source income: From 1 July 2006, those taxpayers who are temporary residents do not have to pay tax in Australia on most of their foreign income if they: ● Are an individual who is an Australian resident for tax purposes, and ● Satisfy the requirements of being a temporary resident. Section 768-910 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that ordinary income derived from a foreign source (excluding employment related income and capital gains on shares and rights acquired under employee share schemes) and is exempt from income tax in Australia when derived by a temporary resident in Australia. Therefore, as you are a temporary resident of Australia for taxation purposes for the relevant period, any foreign sourced income you have derived will be exempt from income tax in Australia under section 768-910 of the ITAA 1997 for the period XXXX to XXXX. This income is not required to be declared in your Australian income tax return for the period XXXX to XXXX.