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Edited version of your private ruling
Authorisation Number: 1012479780335
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.
Ruling
Subject: Assessability of foreign income
Question and answer:
Is the income you derive from services provided to International Organisation X, where the work is performed in Australia, assessable in Australia?
No.
This ruling applies for the following period:
Year ended 30 June 2013.
The scheme commenced on:
1 July 2012.
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 an Australian resident.
You are currently employed as an employee of Organisation X. Your services are required for a certain amount of days during the period of your employment.
Your employment contract states that you receive a certain amount of money per day worked.
You work remotely from home via the internet.
Organisation X is listed in the Specialised Agencies (Privileges and Immunities) Regulations 1986.
Reasons for decision
Subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that the assessable income of an Australian resident includes ordinary income derived from all sources, whether inside or outside Australia, during an income year.
Subsection 6-15(2) of the ITAA 1997 provides that, if an amount is classed as exempt income, then it is not assessable.
Subsection 6-20(1) of the ITAA 1997 provides that ordinary income is exempt if it is made exempt by a provision of the ITAA 1997, or the Income Tax Assessment Act 1936 (ITAA 1936), or another Commonwealth law.
The International Organisations (Privileges and Immunities) Act 1963 (IO(P&I)A 1963) is a Commonwealth law under which an international organisation, and its employees, may be receive an exemption from tax.
Some of the international organisations which this exemption applies to are listed in Specialised Agencies (Privileges & Immunities) Regulations 1986 (SA(P&I) Regulations 1986).
Organisation X is listed in the Regulations as an organisation which this exemption applies to.
As you are an employee of Organisation X, the income that you receive from Organisation X is exempt income under section 6-20 of the ITAA 1997 and it is not assessable income in Australia under subsection 6-5(2) of the ITAA 1997.