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Edited version of private advice

Authorisation Number: 1052349390476

Date of advice: 14 January 2025

Ruling

Subject: Assessable income - foreign government employer

Question

Is the income you earn from your employment with the Employer exempt income and therefore not assessable under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

Yes.

Article XX of the relevant DTAprovides that remuneration paid by Country A in respect of services rendered in the discharge of governmental functions shall be taxable only in Country A.

The Employer is wholly owned, controlled and funded by Country A's government. Article XX of the DTA will therefore apply to you.Income earned from your employment with the Employer will be exempt income and is not assessable under section 6-5 of the ITAA 1997.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You were born in Country A and are a citizen of Country A.

You were employed by the Employer in Australia for many months.

The Employer is a public XXXXX established by the Government of Country A.

The Employer has had a presence in Australia with a small XXXXX for some time.

You entered Australia on a Temporary skills shortage visa (482 visa) sponsored by the Employer.

Following completion of your employment, you returned to Country A.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 6-5

International Tax Agreements Act 1953

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