Private ruling: : Double tax agreement
Date of advice: 15 June 2022
Published: August 2022
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are the fellowship payments assessable in Australia? | A1: No. Based on the information provided to the Commissioner the payments you received are not assessable in Australia. The Double Tax Agreement (DTA) between Australia and Country Z gives Country Z the sole taxing rights over the income under the relevant Article, as you are not a resident of Australia for taxation purposes and the employment was exercised in Country Z.

Relevant facts and circumstances: You are a non-resident of Australia for taxation purposes. You were awarded a fellowship several years ago. You receive payments from an organisation. The fellowship is for several years. A portion of the fellowship is to be done overseas. You commenced this fellowship in the year after it was granted. You applied for another fellowship in Country Z and was granted a suspension to the first fellowship. You participated in the second fellowship for a couple of years. You recommenced the first fellowship in a later year. You were living in Country Z and you exercised the employment in Country Z. You were paid from an organisation who withheld at non-resident rates.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5