Private ruling: Assessable income
Date of advice: 25 October 2024
Published: 9 December 2024
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is income you earn from your employment in Australia covered by Article X of the relevant Double Taxation Agreement between Australia and Country A (the DTA)? | A1: Yes. Your employer is wholly owned, controlled and funded by Country A's government. Therefore, Article X of the DTA will apply to you as you are you are providing services rendered in the discharge of governmental functions. | Q2: Is your income considered foreign exempt income and therefore not assessable income in Australia in accordance with section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A2: Yes. You are a citizen only of Country A, residing in Australia on a visa sponsored by your employer solely for the purposes of performing your employment duties. As such, Article X provides income you earn from this employment will be taxable only in Country A.

Relevant facts and circumstances: You were born in Country A. You are employed by a XXXXX wholly owned, controlled and funded the Government of Country A. From XX 20XX, the Employer has had a presence in Australia with a small XXXX. You have entered Australia on a 482 visa, sponsored by the Employer. Your contract of employment in Australia dates from XX XX 20XX to XX XX 20XX. Your job requires you to work nighttime shifts in Country A (which is daytime in Australia). The period of a posting for an individual to the Employer, is on average X years. On completion of your assignment to Australia, you will return to Country A. You are an Australian resident for income tax purposes.

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