Private ruling: Pay as you go withholding
Date of advice: 9 December 2015
Published: February 2016
Ruling period: Year ended 30 June 2016
Date scheme commenced: 1 July 2015

Ruling: Question and Answer | 1. Are you required to remit pay as you go withholding tax (PAYG) to the Australian Taxation Office (ATO)? | Yes | 2. Are you required to remit PAYG withholding tax to the Country A Government? | Decline to rule - this is a Country A Government matter. | 3. Can the employee claim a credit for the tax paid to the Country A Government when the employee lodges their Australian tax return? | Decline to rule - this is dependent on whether there is tax payable to Country A.

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 wish to re-locate Australian resident employees to work in projects on Country A on a short term basis of less than 90 days.

Relevant legislative provisions: Taxation Administration Act 1953 Section Sch1-12-35. | Taxation Administration Act 1953 Section Sch1-12-40. | Taxation Administration Act 1953 Section Sch1-18-15. | Taxation Administration Act 1953 Section Sch1-15-10. | Taxation Administration Act 1953 Section Sch1-16-70

Reasons for decision: Summary: If you have any employees working in a foreign country and their payments do not meet any of the conditions to be exempt, you should: • withhold an amount from payments made to them • provide each payee with a PAYG payment summary - foreign employment (NAT 73297) . If an employee is a foreign resident, then you do not withhold tax. The PAYG payment summary - foreign employment you provide to your employees must include: • the amounts that relate to the period of foreign employment • any tax you withheld and paid to a foreign government. Further information about PAYG withholding and employees who work in a foreign country can be found by searching for QA22115 on ATO.gov.au.