Private ruling: Income from foreign sources
Published: January 2012
Ruling period: Year ended 30 June 2013 | Year ended 30 June 2012 | Year ended 30 June 2011 | Year ended 30 June 2010
Date scheme commenced: 1 July 2009

Ruling: Question and answer: | Is your employment income derived overseas exempt from tax in Australia? | Yes.


Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 6(1). | Income tax Assessment Act 1997 Section 6-5 | Income Tax Assessment Act 1997 section 6-20 | International Organisations (Privileges and Immunities) Act 1963 IO(PI)63 | Specialised Agencies (Privileges and Immunities) Regulations 1986

Reasons for decision: Summary: Salary received by a person who holds an office in a specified international organisation may be exempt from Australian income tax pursuant to regulations made under the International Organisations (Privileges and Immunities) Act 1963 (IO(P&I)A). Taxation Determination TD 92/153 provides that the phrase 'person who holds an office' in relation to a prescribed international organisation includes those people who work as employees for that organisation. The phrase does not include experts or consultants. The organisation is specified as an international organisation to which the IO(P&I)A applies (schedule to Specialised Agencies (Privileges and Immunities) Regulations 1986 (Statutory Rule 1986, No. 67)). The privileges and immunities of officers (other than high officers) of such international organisations are specified in Part 1 of the Fourth Schedule of the IO(P&I)A. Paragraph 2 of Part 1 of the Fourth Schedule (IO(P&I)A) provides that salaries received from the organisation are exempt from taxation in Australia. Therefore your salary derived overseas is not required to be declared in your Australian tax return.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You are an Australian citizen and resident for taxation purposes. | You have arranged to take a number of years off from your current employment in Australia to work for an overseas organisation. | You are an employee of the organisation. | The organisation is specified as an international organisation to which the International Organisations (Privileges and Immunities) Act 1963 applies