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Edited version of your written advice
Authorisation Number: 1012832820847
NOTICE
This edited version has been found to be misleading or incorrect. It does not represent the ATO’s view of the relevant law.
This notice must not be taken to imply anything about:
● the binding nature of the private advice issued to the applicant
● the correctness of other edited versions.
Edited versions cannot be relied upon as precedent or used for determining how the ATO will apply the law in other cases.
Date of advice: 1 July 2015
Ruling
Subject: Foreign income
Question and answer
Is your foreign salary assessable income in Australia?
No.
This ruling applies for the following periods:
Year ending 30 June 2015
Year ending 30 June 2016
Year ending 30 June 2017
The scheme commenced on:
The scheme has commenced
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are employed overseas.
This position is for approximately 2 years.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5.
Reasons for decision
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 international 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.
As you are employed as an advisor overseas your salary is not assessable in Australia and is not required to be declared in your Australian tax return.
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