Private ruling: Foreign employment income
Date of advice: 10 January 2020
Published: March 2020
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Is your foreign employment income exempt from taxation in Australia under section 23AG of the Income Tax Assessment Act 1936 (ITAA 1936)? | A1: Yes. It is accepted that you meet the relevant criteria identified in section 23AG of the ITAA 1936 so that the income derived from your foreign employment is exempt from income tax in Australia. Further information can be found by searching 'QC 16739' on ato.gov.au.

Relevant facts and circumstances: You are an Australian resident for tax purposes. You took up an employment contract with an Australian organisation which is funded by the Australian Government to provide Australian official development assistance in foreign countries. You were employed to work in a foreign country or a period of more than 91 days. The foreign country imposes income tax on employment income. There is no double tax agreement with the foreign country.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 23AG