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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1051341820469

Date of advice: 22 February 2018

Ruling

Subject: Residency and income

Question and answer

Are you required to declare foreign source income in your Australian tax return for the period XXXX to XXXX?

No.

This ruling applies for the following periods:

Year ended 30 June 2014

Year ended 30 June 2015

Year ended 30 June 2016

Year ended 30 June 2017

Year ending 30 June 2018

The scheme commenced on:

1 July 2013

Relevant facts and circumstances

You are a temporary resident of Australia.

You are a resident of Australia for taxation purposes.

You were a temporary resident of Australia for the period XXXX to XXXX.

You obtained permanent residency of Australia on XXXX.

You had foreign sourced income during the period XXXX to XXXX.

Relevant legislative provisions:

Income Tax Assessment Act 1997 Section 768-910

Income Tax Assessment Act 1997 Section 768-915

Reasons for decision

Foreign source income

From 1 July 2006, those taxpayers who are temporary residents do not have to pay tax in Australia on most of their foreign income if they:

Section 768-910 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that ordinary income derived from a foreign source (excluding employment related income and capital gains on shares and rights acquired under employee share schemes) and is exempt from income tax in Australia when derived by a temporary resident in Australia.

Therefore, as you are a temporary resident of Australia for taxation purposes for the relevant period, any foreign sourced income you have derived will be exempt from income tax in Australia under section 768-910 of the ITAA 1997 for the period XXXX to XXXX.

This income is not required to be declared in your Australian income tax return for the period XXXX to XXXX.

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