Private ruling: Assessability of non-resident income
Date of advice: 28 September 2016
Published: November 2016
Ruling period: Year ending 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Question and answer | Are the proceeds of the sale of country A stock options (which you owned) 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 a foreign resident. You do not receive income from any source within Australia. You sold country A stock options.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 6-5(3)

Reasons for decision: Summary: Section 6-5(3) of the ITAA 1997 provides that the assessable income of a non-resident taxpayer includes ordinary income derived directly or indirectly from all Australian sources. In your case, you are a foreign resident and the income you received from the sale of country A stock options is not sourced from within Australia. Income received by a foreign resident that is not sourced from within Australia is not assessable in Australia.