Private ruling: Foreign employment income
Date of advice: 5 July 2019
Published: September 2019
Ruling period: Income year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Is the salary and allowances you received for the period of your deployment to a foreign country as a member of a disciplined force exempt from tax in Australia? | A1: Yes You are an Australian resident for income tax purposes. You derived salary and allowances from your foreign service in the foreign country. Your foreign service was for a continuous period of not less than 91 days. You were deployed outside Australia as a member of a disciplined force. The salary and allowances you derived from your foreign service were exempt in the foreign country. The salary is not exempt because of a Double Tax Agreement, the laws of the foreign country provide for the imposition of income tax on income derived in the capacity of an employee or from personal services, and do not exempt employment income in general from income tax. The diplomatic or consular privileges or immunities of persons connected with international organisations do not apply to employees deployed to the foreign country. Therefore the salary and allowances you received for the period of your deployment is exempt from tax in Australia under section 23AG of the ITAA 1936.


Relevant legislative provisions: Section 23AD Income Tax Assessment Act 1936 | Section 23AG Income Tax Assessment Act 1936 | Section 6-5 Income Tax Assessment Act 1997 | Section 11-15 Income Tax Assessment Act 1997


You are member of a disciplined force. | You were deployed by the disciplined force to a foreign country. You commenced and ceased in this role during the income year of the ruling. | You were paid salary and allowances for your foreign service. | You were deployed to a foreign country for a continuous period of not less than 91 days. | There is no double tax agreement between Australia and a foreign country. | The taxation laws of a foreign country provide for the imposition of income tax on employment income and do not generally exempt such income from income tax. | The diplomatic or consular privileges or immunities of persons connected with international organisations do not apply to your deployment.