Taxation Ruling TR 2025/1
Date of effect: 24 September 2025

What this ruling is about: 1. This Ruling considers the income of international organisations and persons connected with international organisations that is exempt income. The income is made exempt by section 6-20 of the Income Tax Assessment Act 1997 (ITAA 1997) because of the application of the International Organisations (Privileges and Immunities) Act 1963 (IOPI Act). [1] The IOPI Act provides for the conferral, by regulation, of privileges and immunities (including specified tax exemptions) on international organisations and persons connected with them. 2. This Ruling does not consider excise duty, goods and services tax and other indirect taxes that may be paid by international organisations and persons connected with them. 3. The views expressed in this Ruling are those of the Commissioner of Taxation, applying for the purpose of the interpretation of income tax law. [2] They do not extend to the interpretation of privileges and immunities for other purposes.


Ruling: 1. This Ruling considers the income of international organisations and persons connected with international organisations that is exempt income. The income is made exempt by section 6-20 of the Income Tax Assessment Act 1997 (ITAA 1997) because of the application of the International Organisations (Privileges and Immunities) Act 1963 (IOPI Act). [1] The IOPI Act provides for the conferral, by regulation, of privileges and immunities (including specified tax exemptions) on international organisations and persons connected with them. 2. This Ruling does not consider excise duty, goods and services tax and other indirect taxes that may be paid by international organisations and persons connected with them. 3. The views expressed in this Ruling are those of the Commissioner of Taxation, applying for the purpose of the interpretation of income tax law. [2] They do not extend to the interpretation of privileges and immunities for other purposes.

Examples: Example 1:  person is an office holder 34. Chris is employed by an organisation that is an international organisation covered by the IOPI Act (as per the Regulations for that organisation). The Regulations provide that income received from the organisation by an office holder of the organisation is income tax exempt and that there are no further conditions or particulars that apply to that exemption. Chris leads a team that provides ongoing professional advice which the organisation relies on to carry out its core functions. Chris has significant organisational responsibilities and functions, including developing organisational strategy and managing employees. He is able to engage and enter contracts and make financial commitments on behalf of the organisation. Chris is a person who is an office holder for the purposes of the IOPI Act. 35. Any income that Chris receives from the international organisation in his capacity as an office holder is exempt income because the requirements for an income tax exemption to apply, as outlined in paragraph 18 of this Ruling, are satisfied: | Example 2:  person is not an office holder 36. Kylie, a management consultant, is engaged by an international organisation on a short-term contract to undertake an operational review of that organisation. Kylie's sole task is to complete the review, with her engagement ending upon its completion. She has the legal status of an independent contractor, serving in her individual capacity and with no authority or other right to enter into any legal or financial commitments on behalf of the international organisation. The position that Kylie occupies does not exist either before or after her engagement. None of the functions she performs will continue to be performed after she completes her engagement. Kylie is not a person who is an office holder for the purposes of the IOPI Act and the income Kylie receives for the engagement is not exempt from income tax. Persons who serve on a committee, participate in the work of, or perform a mission on behalf of an international organisation 37. Persons who serve on a committee, participate in the work of an international organisation, or perform a mission on behalf of an international organisation can be exempted from taxation of salaries and emoluments they receive from the organisation. [29] Whether these persons are entitled to an exemption from taxation of salaries and emoluments must be determined in accordance with paragraph 18 of this Ruling. 38. This category of persons focuses on the activities undertaken by the respective persons. The references to the activities 'serving on a committee' 'participating in the work of an international organisation' or 'performing a mission on behalf of an international organisation', are interpreted using their ordinary meaning. The reference to the activities must then be read in context. 39. A person needs to be representing the organisation to be considered to be 'serving' on a committee of an international organisation. The committee would generally be an external-facing committee of the international organisation  that is, one that facilitates it to carry out its core work. 40. A person participating in the work of an international organisation requires that person to undertake 'the work of the organisation'. This requires identifying what is 'the work of the organisation'. Whether or not the activity undertaken is properly characterised as 'the work of the organisation' will usually be identified by reference to the central object of that international organisation. For example, a person working for an international organisation whose mission is to prevent hunger and starvation would be participating in the work of the international organisation if they are working at a food aid distribution station set up by the organisation in a country where severe food shortages were occurring. It would not be satisfied merely because a person works for the international organisation. For example, a person who merely works in the administration of an international organisation is not as such participating in 'the work' of the organisation. 41. For a person to perform a mission on behalf of an international organisation requires the person doing that to represent the organisation to someone else. This connotates some interaction between the international organisation and someone else where the person acts on behalf of the organisation, even if that is only temporarily. 42. Examples of persons serving on a committee, participating in the work of, or performing a mission on behalf of an international organisation may include: 43. However, the exemption discussed in paragraph 37 of this Ruling may be limited or subject to conditions, such as where the person is rendering the services in Australia and is a resident of Australia for taxation purposes. To the extent that the exemption is limited or subject to conditions in relation to a particular international organisation, it will be specified in the Regulations for that organisation. See, for example: | Example 3:  person who is an expert or a consultant 44. George is a resident of Australia for income tax purposes. George is engaged directly by an international organisation, in his individual capacity as a technical adviser, to travel to a country to undertake a targeted review, on behalf of the organisation, of the operation of a particular part of the health system. In doing so, he is undertaking the work as a representative of the international organisation, including being present in the country and having its officials interact with him in that capacity. 45. The international organisation is covered by the IOPI Act (as set out in the Regulations for that organisation). The Regulations provide that income received from the organisation by an expert or consultant performing a mission on behalf of the international organisation is income tax exempt. However, the Regulations state that the exemption is denied if the person is an Australian resident, in respect of any services that are rendered in Australia. 46. The review requires George to travel to the country and make his observations  which encompasses 30 of the 50 days of his engagement. He then comes home to Australia to write a report with recommendations for improvements, which encompass the other 20 days of his engagement. George completes his engagement upon finalising his report. 47. George has no authority or other right to enter into any legal or financial commitments on behalf of the international organisation. The position that George occupies does not exist either before or after his engagement. None of the functions he performs will continue to be performed after he completes his engagement. George is an expert or consultant performing a mission on behalf of an international organisation for the purposes of the IOPI Act. 48. The portion of the payments that George receives from the organisation that relates to the period he rendered his services outside of Australia for 30 days is income tax exempt. This is because the requirements for an income tax exemption to apply, as outlined in paragraph 18 of this Ruling, are satisfied for that portion of the payments: 49. The portion of the payments that George receives from the organisation that relates to the period he rendered his services in Australia for 20 days is assessable income and therefore taxable. This is because this amount is not income tax exempt as it does not satisfy all the requirements for an income tax exemption to apply that are outlined in paragraph 18 of this Ruling  specifically, the additional conditions and particulars for the exemption specified in the Regulations which provide that the exemption is available only in respect of services rendered outside of Australia. Persons connected in a specified way with an international organisation 50. This category of persons allows privileges and immunities, including an exemption from taxation, to be conferred to categories of persons of an international organisation that have a designation that is not prescribed in the IOPI Act. This category of persons for a particular international organisation, if it applies, is specified in the regulations for that international organisation. 51. Once nominated in the Regulations for that international organisation, each category of persons is then assigned privileges and immunities under one of the Second, Third, Fourth or Fifth Schedules to the IOPI Act. This could include an exemption from taxation. Whether these persons are entitled to an exemption from taxation of salaries and emoluments must be determined in accordance with paragraph 18 of this Ruling. Persons formerly connected with an international organisation 52. There are no taxation exemptions for persons who were formerly connected with an international organisation. [34] 53. The IOPI Act and the regulations distinguish between persons currently connected with an international organisation (see paragraph 15 of this Ruling) and those who have stopped or ceased being connected. [35] The privileges and immunities differ depending on this status. Part I of each of the Second to Fifth Schedules to the IOPI Act (that provide privileges concerning taxation) only apply to persons currently connected with an international organisation. Part II of each of those Schedules that apply to persons formerly connected with international organisations does not provide any privileges concerning taxation. [36] (See paragraphs 56 to 58 of this Ruling in relation to pensions.) 54. This distinction is consistent with the purpose of the IOPI Act to confer privileges and immunities to assist organisations to perform their functions, rather than to personally benefit persons connected with the organisation. [37] The latter occurs if a person was provided an exemption from taxation for amounts they received after their connection with an international organisation ceased (even if that amount was a consequence of that earlier connection, for example, an employment termination payment or a pension). 55. Therefore, section 6-20 of the ITAA 1997 does not apply to the income of a person formerly connected with an international organisation as the IOPI Act does not confer any taxation exemptions upon such a person. Pensions of former office holders 56. A pension received by a former office holder in an international organisation is not exempted from tax in Australia. This is because the IOPI Act does not extend tax exemptions to persons formerly connected with an international organisation. (See paragraphs 52 to 55 of this Ruling.) 57. For income of an office holder to be exempted by the IOPI Act, the income must be received: 58. Pension payments do not generally satisfy these conditions as they are not received by a person while they are an office holder, nor are they paid by an international organisation. Further, a pension cannot be an emolument because it does not flow from the occupation of an office; it flows only on and from ceasing that office. [39] Income tax exemption 59. Salaries or emoluments exempt from Australian tax under the IOPI Act and under section 6-20 of the ITAA 1997 are not taken into account in calculating the Australian tax on other assessable income derived by the person. 60. This contrasts to foreign remuneration and earnings of a person working overseas that may be exempt from Australian tax under sections 23AF or 23AG of the Income Tax Assessment Act 1936. These are subject to what is referred to as 'exemption with progression', where they are taken into account in calculating the Australian tax on the person's other assessable income (although these amounts themselves are not subject to tax). Date of effect 61. This Ruling applies both before and after its date of issue. However, the Ruling will not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of issue of the Ruling (see paragraphs 75 to 76 of Taxation Ruling TR 2006/10 Public Rulings ). Commissioner of Taxation 24 September 2025 Evidence of connection to an international organisation International organisation 62. An international organisation should apply the concepts outlined in this Ruling when determining whether a person is: 63. If it does, the Commissioner will accept, as documentary evidence that a person is connected with an international organisation, subject to any evidence to the contrary, a statement from the organisation that contains: Applying for a private ruling 64. If you are uncertain about whether payments you receive from an international organisation that you may be connected with are assessable income or exempt income, you may apply for a private ruling. © AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). Previously released in draft form as TR 2019/D1



What this Ruling is about | Appendix  Compliance approach | If this Ruling applies to you, and you correctly rely on it, we will apply the law to you in the way set out in this Ruling. That is, you will not pay any more tax or penalties or interest in respect of the matters covered by this Ruling. | References in the IOPI Act | A person who holds, or is performing the duties of, an office prescribed by regulations to be a high office | A person who holds an office in an international organisation (but who is not a holder of a high office) | A person who is serving on a committee, or is participating in the work of, or is performing a mission on behalf of an international organisation | A person connected in a specified way with an international organisation | The phrase "a person who holds an office in an international organisation" directs attention to the structure of the organisation and the place of the person within it. The holder of an "office" in such an organisation may be expected to have a position to which certain duties attach, duties relating to the performance of the organisation's functions and a level of authority with respect to the organisation. The position of the person within the international organisation and the duties and authority associated with it should render explicable why the privileges and immunities are conferred. By comparison, a person whose terms of engagement place them outside the organisational structure, and do not provide that person with any defined duties or authority with respect to the organisation and its functions, could hardly be said to hold an office within the organisation. | Appendix  Compliance approach: This Appendix sets out a practical administration approach to assist taxpayers in complying with relevant tax laws. Provided you follow the advice in this appendix in good faith and consistently with the Ruling section, the Commissioner will administer the law in accordance with this approach. | Previous Rulings/Determinations: TR 92/14 TD 92/153


Previous rulings: 4. This Ruling updates the views expressed in: | 5. TR 92/14 and TD 92/153 were withdrawn with effect from 27 March 2019, the date of issue of draft Taxation Ruling TR 2019/D1 Income tax: income of international organisations and persons connected with them that is exempt from income tax (now withdrawn) when this Ruling was first issued in draft. | 6. This Ruling takes into account the decisions of the High Court in Macoun v Commissioner of Taxation [2015] HCA 44 ( Macoun ) and Commissioner of Taxation v Jayasinghe [2017] HCA 26 ( Jayasinghe ). | 7. An amount of income is exempt income under section 6-20 of the ITAA 1997 if it is exempted from income tax by this Act [3] or another Commonwealth law. The IOPI Act is another Commonwealth law for the purposes of section 6-20. The exemption in section 6-20 includes income exempted by the IOPI Act of: | 8. This Ruling considers when: | International organisations | 9. The IOPI Act sets out the taxation exemptions that can be conferred on an international organisation to which it applies. [4] These are exemptions from: | 10. The IOPI Act applies to an international organisation if regulations declare it to be an international organisation for the purposes of the IOPI Act. This is done by making regulations under the IOPI Act for that particular international organisation. [8] The conditions for, and the extent of, the exemptions from taxation [9] are set out in the particular Regulations [10] for that organisation. | 11. There are differences in the scope of exemptions and concessions (and the levels and conditions that they may be subject to) conferred on international organisations. The exemptions and concessions are often granted at the time an international organisation is established in Australia or expands their representation or engagement here, based upon their current and future needs as envisaged at that time. These exemptions and concessions can vary significantly between international organisations and it is necessary to review the particular Regulations that apply to an international organisation when determining, for example: | 12. Section 6-20 of the ITAA 1997 applies to any income of an international organisation that satisfies the conditions for the exemption under the IOPI Act and related regulations to characterise it as exempt income of that organisation for income tax purposes. | 13. An international organisation may be exempted from the liability (including the obligation) to collect taxes, which can include PAYG withholding from salaries and wages of its employees. [11] The particular Regulations for an international organisation specify whether this exemption applies to it. | 14. Even if the exemption in paragraph 13 of this Ruling does not apply, an international organisation is not required to collect PAYG withholding from salaries and emoluments it pays to a person connected with the organisation where that income is wholly exempted for that person by the IOPI Act. This is because an entity is not required to withhold from an amount it pays to another entity if the whole of that payment is exempt income of the entity receiving the payment. [12] | Persons currently connected with an international organisation | 15. The IOPI Act sets out the taxation exemptions that can be conferred upon certain persons currently connected with an international organisation. [13] Table 1 of this Ruling outlines the categories of persons, the legislative provisions and paragraphs of this Ruling that apply to them. | Part I of the Second Schedule | Part I of the Third Schedule | Part I of the Fourth Schedule | Part I of the Fifth Schedule | Part I of the Second, Third, Fourth or Fifth Schedule | 16. Whether a person comes within a category of persons and therefore is connected with an international organisation has to be determined taking into account the facts and circumstances of their situation. This includes considering the substance of the terms of engagement between that person and the organisation, the role, functions or tasks that the person has been engaged to perform and the relationship between those facts and circumstances that and the organisation performing its functions. [14] | 17. Paragraph 63 of this Ruling sets out information that the Commissioner will accept as documentary evidence that a person has the requisite connection to an international organisation. | 18. The IOPI Act exempts the income of a person connected with an international organisation from income tax where all of the following are satisfied and to the extent they are satisfied: | 19. Where these requirements are met, section 6-20 of the ITAA 1997 characterises this income as exempt income of that person for income tax purposes. | Definition of person | 20. For the purposes of the IOPI Act, a reference to a person should be read as a reference to an individual. | 21. Section 2C of the Acts Interpretation Act 1901 does not affect this position. That section provides that in any Act, expressions used to denote persons generally include a body politic or corporate as well as an individual. However, a body corporate, including a company, is not able to do the things itself required to make them a person connected with an international organisation. For example, a company cannot itself occupy a position to be a holder of an office or serve on a committee, participate in the work of, or perform a mission on behalf of an international organisation. | Person who is a holder of a high office | 22. A person who holds a high office is usually a senior officer of the international organisation or their deputy, for example, the Secretary General, President or Director of the international organisation. (See paragraphs 25 to 36 of this Ruling for more information on who is an office holder of an international organisation.) An office of an international organisation is only a 'high office' if it has been prescribed as such by the Regulations for that international organisation. | 23. The holder of a high office may be conferred the same privileges and immunities as those given to a diplomatic agent under the Vienna Convention on Diplomatic Relations. [15] These include exemption from all dues and taxes, personal or real, national, regional or municipal, subject to a number of exceptions including taxes on private immovable property in Australia, private income sourced in Australia and investments in commercial undertakings in Australia. [16] | Person attending an international conference | 24. A person who is accredited to, or is in attendance at, an international conference convened by an international organisation may be provided with similar privileges and immunities as those given to a diplomatic agent. [17] For income tax, this includes the same privileges referred to in paragraph 23 of this Ruling. | Person who holds an office in an international organisation | 25. A person who holds an office in an international organisation, but who does not hold a high office (see paragraph 22 of this Ruling), may be exempted from taxation on salary and emoluments received from an international organisation. [18] | 26. The exemption at paragraph 25 of this Ruling may be limited or subject to conditions by regulations made for international organisations. For example, certain regulations may preclude this exemption from tax where an 'office holder' is either an Australian citizen or permanent resident of Australia as those terms are understood for migration purposes. [19] | Who is an office holder? | 27. The IOPI Act does not define the term 'office' or the phrase 'holds an office in an international organisation'. The term 'office' cannot be defined by reference to permanence or succession. [20] Whether a person holds or performs the duties of an office in an international organisation concerns the relationship between the person and that organisation with the incidents of that relationship depending on the terms of the person's engagement. [21] The centrality of the terms of engagement to the inquiry required reflects the fact that the IOPI Act can, and does, apply to a variety of international organisations. [22] The substance of the terms of the engagement of the person and the relationship between that engagement and the organisation performing its functions must be considered. [23] | 28. The High Court in Jayasinghe [24] considered the phrase 'a person who holds an office in an international organisation (footnotes omitted): | 29. There are 6 criteria for determining whether a person can be said to hold an office in an international organisation, being [25] : | 30. The duties and authority associated with the person's position in the international organisation are relevant to whether the income tax exemption applies to salaries and emoluments paid to that person by the organisation. A person is unlikely to be an 'office holder' if their terms of engagement place them outside the organisational structure and do not include defined duties or authority in relation to the organisation and its functions. [27] This is consistent with the purpose of the IOPI Act to confer privileges and immunities to assist organisations to perform their functions, rather than to personally benefit persons connected with the organisation. [28] | 31. Therefore, an office holder can include a person who works as an employee of the international organisation, but an office holder does not include a person (whether an employee or not) who is: | 32. Whether someone is an office holder is a matter of fact to be considered on a case-by-case basis. Furthermore, this may change over time as a person's duties, functions and responsibilities change. It is something that must be considered and evaluated on a regular basis. | 33. The following examples illustrate the concept of a person who is an office holder: | Example 1  person is an office holder | 34. Chris is employed by an organisation that is an international organisation covered by the IOPI Act (as per the Regulations for that organisation). The Regulations provide that income received from the organisation by an office holder of the organisation is income tax exempt and that there are no further conditions or particulars that apply to that exemption. Chris leads a team that provides ongoing professional advice which the organisation relies on to carry out its core functions. Chris has significant organisational responsibilities and functions, including developing organisational strategy and managing employees. He is able to engage and enter contracts and make financial commitments on behalf of the organisation. Chris is a person who is an office holder for the purposes of the IOPI Act. | 35. Any income that Chris receives from the international organisation in his capacity as an office holder is exempt income because the requirements for an income tax exemption to apply, as outlined in paragraph 18 of this Ruling, are satisfied: | Example 2  person is not an office holder | 36. Kylie, a management consultant, is engaged by an international organisation on a short-term contract to undertake an operational review of that organisation. Kylie's sole task is to complete the review, with her engagement ending upon its completion. She has the legal status of an independent contractor, serving in her individual capacity and with no authority or other right to enter into any legal or financial commitments on behalf of the international organisation. The position that Kylie occupies does not exist either before or after her engagement. None of the functions she performs will continue to be performed after she completes her engagement. Kylie is not a person who is an office holder for the purposes of the IOPI Act and the income Kylie receives for the engagement is not exempt from income tax. | Persons who serve on a committee, participate in the work of, or perform a mission on behalf of an international organisation | 37. Persons who serve on a committee, participate in the work of an international organisation, or perform a mission on behalf of an international organisation can be exempted from taxation of salaries and emoluments they receive from the organisation. [29] Whether these persons are entitled to an exemption from taxation of salaries and emoluments must be determined in accordance with paragraph 18 of this Ruling. | 38. This category of persons focuses on the activities undertaken by the respective persons. The references to the activities 'serving on a committee' 'participating in the work of an international organisation' or 'performing a mission on behalf of an international organisation', are interpreted using their ordinary meaning. The reference to the activities must then be read in context. | 39. A person needs to be representing the organisation to be considered to be 'serving' on a committee of an international organisation. The committee would generally be an external-facing committee of the international organisation  that is, one that facilitates it to carry out its core work. | 40. A person participating in the work of an international organisation requires that person to undertake 'the work of the organisation'. This requires identifying what is 'the work of the organisation'. Whether or not the activity undertaken is properly characterised as 'the work of the organisation' will usually be identified by reference to the central object of that international organisation. For example, a person working for an international organisation whose mission is to prevent hunger and starvation would be participating in the work of the international organisation if they are working at a food aid distribution station set up by the organisation in a country where severe food shortages were occurring. It would not be satisfied merely because a person works for the international organisation. For example, a person who merely works in the administration of an international organisation is not as such participating in 'the work' of the organisation. | 41. For a person to perform a mission on behalf of an international organisation requires the person doing that to represent the organisation to someone else. This connotates some interaction between the international organisation and someone else where the person acts on behalf of the organisation, even if that is only temporarily. | 42. Examples of persons serving on a committee, participating in the work of, or performing a mission on behalf of an international organisation may include: | 43. However, the exemption discussed in paragraph 37 of this Ruling may be limited or subject to conditions, such as where the person is rendering the services in Australia and is a resident of Australia for taxation purposes. To the extent that the exemption is limited or subject to conditions in relation to a particular international organisation, it will be specified in the Regulations for that organisation. See, for example: | Example 3  person who is an expert or a consultant | 44. George is a resident of Australia for income tax purposes. George is engaged directly by an international organisation, in his individual capacity as a technical adviser, to travel to a country to undertake a targeted review, on behalf of the organisation, of the operation of a particular part of the health system. In doing so, he is undertaking the work as a representative of the international organisation, including being present in the country and having its officials interact with him in that capacity. | 45. The international organisation is covered by the IOPI Act (as set out in the Regulations for that organisation). The Regulations provide that income received from the organisation by an expert or consultant performing a mission on behalf of the international organisation is income tax exempt. However, the Regulations state that the exemption is denied if the person is an Australian resident, in respect of any services that are rendered in Australia. | 46. The review requires George to travel to the country and make his observations  which encompasses 30 of the 50 days of his engagement. He then comes home to Australia to write a report with recommendations for improvements, which encompass the other 20 days of his engagement. George completes his engagement upon finalising his report. | 47. George has no authority or other right to enter into any legal or financial commitments on behalf of the international organisation. The position that George occupies does not exist either before or after his engagement. None of the functions he performs will continue to be performed after he completes his engagement. George is an expert or consultant performing a mission on behalf of an international organisation for the purposes of the IOPI Act. | 48. The portion of the payments that George receives from the organisation that relates to the period he rendered his services outside of Australia for 30 days is income tax exempt. This is because the requirements for an income tax exemption to apply, as outlined in paragraph 18 of this Ruling, are satisfied for that portion of the payments: | 49. The portion of the payments that George receives from the organisation that relates to the period he rendered his services in Australia for 20 days is assessable income and therefore taxable. This is because this amount is not income tax exempt as it does not satisfy all the requirements for an income tax exemption to apply that are outlined in paragraph 18 of this Ruling  specifically, the additional conditions and particulars for the exemption specified in the Regulations which provide that the exemption is available only in respect of services rendered outside of Australia. | Persons connected in a specified way with an international organisation | 50. This category of persons allows privileges and immunities, including an exemption from taxation, to be conferred to categories of persons of an international organisation that have a designation that is not prescribed in the IOPI Act. This category of persons for a particular international organisation, if it applies, is specified in the regulations for that international organisation. | 51. Once nominated in the Regulations for that international organisation, each category of persons is then assigned privileges and immunities under one of the Second, Third, Fourth or Fifth Schedules to the IOPI Act. This could include an exemption from taxation. Whether these persons are entitled to an exemption from taxation of salaries and emoluments must be determined in accordance with paragraph 18 of this Ruling. | Persons formerly connected with an international organisation | 52. There are no taxation exemptions for persons who were formerly connected with an international organisation. [34] | 53. The IOPI Act and the regulations distinguish between persons currently connected with an international organisation (see paragraph 15 of this Ruling) and those who have stopped or ceased being connected. [35] The privileges and immunities differ depending on this status. Part I of each of the Second to Fifth Schedules to the IOPI Act (that provide privileges concerning taxation) only apply to persons currently connected with an international organisation. Part II of each of those Schedules that apply to persons formerly connected with international organisations does not provide any privileges concerning taxation. [36] (See paragraphs 56 to 58 of this Ruling in relation to pensions.) | 54. This distinction is consistent with the purpose of the IOPI Act to confer privileges and immunities to assist organisations to perform their functions, rather than to personally benefit persons connected with the organisation. [37] The latter occurs if a person was provided an exemption from taxation for amounts they received after their connection with an international organisation ceased (even if that amount was a consequence of that earlier connection, for example, an employment termination payment or a pension). | 55. Therefore, section 6-20 of the ITAA 1997 does not apply to the income of a person formerly connected with an international organisation as the IOPI Act does not confer any taxation exemptions upon such a person. | Pensions of former office holders | 56. A pension received by a former office holder in an international organisation is not exempted from tax in Australia. This is because the IOPI Act does not extend tax exemptions to persons formerly connected with an international organisation. (See paragraphs 52 to 55 of this Ruling.) | 57. For income of an office holder to be exempted by the IOPI Act, the income must be received: | 58. Pension payments do not generally satisfy these conditions as they are not received by a person while they are an office holder, nor are they paid by an international organisation. Further, a pension cannot be an emolument because it does not flow from the occupation of an office; it flows only on and from ceasing that office. [39] | Income tax exemption | 59. Salaries or emoluments exempt from Australian tax under the IOPI Act and under section 6-20 of the ITAA 1997 are not taken into account in calculating the Australian tax on other assessable income derived by the person. | 60. This contrasts to foreign remuneration and earnings of a person working overseas that may be exempt from Australian tax under sections 23AF or 23AG of the Income Tax Assessment Act 1936. These are subject to what is referred to as 'exemption with progression', where they are taken into account in calculating the Australian tax on the person's other assessable income (although these amounts themselves are not subject to tax).
Related rulings: TR 2006/10
Legislative references: ITAA 1997 6-20 ITAA 1997 995-1(1) ITAA 1936 23AF ITAA 1936 23AG TAA 1953 Sch1 12-1(1) IOPI Act 1963 6(1) IOPI Act 1963 6(1)(a)(ii) IOPI Act 1963 6(1)(b) IOPI Act 1963 6(1)(c) IOPI Act 1963 6(1)(d) IOPI Act 1963 6(1)(e) IOPI Act 1963 6(1)(f) IOPI Act 1963 First Sch IOPI Act 1963 Second Sch IOPI Act 1963 Second Sch Part I IOPI Act 1963 Second Sch Part II IOPI Act 1963 Third Sch IOPI Act 1963 Third Sch Part I IOPI Act 1963 Third Sch Part II IOPI Act 1963 Fourth Sch IOPI Act 1963 Fourth Sch Part I IOPI Act 1963 Fourth Sch Part II IOPI Act 1963 Fifth Sch IOPI Act 1963 Fifth Sch Part I IOPI Act 1963 Fifth Sch Part II Acts Interpretation Act 1901 2C Asian Development Bank (Privileges and Immunities) Regulations 1967 7 Customs Co-operation Council (Privileges and Immunities) Regulations 1979 9 Diplomatic Privileges and Immunities Act 1967 7 International Court of Justice (Privileges and Immunities) Regulations 1967 5 International Organization for Migration (Privileges and Immunities) Regulations 1991 6 Specialized Agencies (Privileges and Immunities) Regulations 1986 9
Case references: Commissioner of Taxation v Jayasinghe [2017] HCA 26 260 CLR 400 2017 ATC 20-627 106 ATR 274
Other references: Vienna Convention on Diplomatic Relations (Vienna, 18 April 1961) [1964] UNTS 500, p 95.