Private ruling: Employment income - double tax agreement
Date of advice: 7 March 2022
Published: May 2022
Ruling period: Year ended 30 June 2021 | Year ending 30 June 2022 | Year ending 30 June 2023 | Year ending 30 June 2024
Date scheme commenced: 1 July 2020

Ruling: Q1: Is the employment income received from your Australian employer assessable in Australia? | A1: No. Based on the information provided to the Commissioner, the income derived from your employer while living in Country Z is not assessable in Australia. Article 15 of the Double Tax Agreement between Australia and Country Z gives Country Z the sole taxing rights to your employment income, as income derived by an individual who is a resident of Country Z in respect of an employment is taxable only in Country Z unless the employment is exercised in Australia.

Relevant facts and circumstances: You are not a resident of Australia for taxation purposes. You are a resident of Country Z for taxation purposes. You are employed by an Australian employer. You carry out your employment duties in Country Z.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 6-20 | International Tax Agreements Act 1953