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Disclaimer
This edited version has been archived due to the length of time since original publication.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.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1012925019667

Date of advice: 9 December 2015

Ruling

Subject: Pay as you go withholding

Question and Answer

    1. Are you required to remit pay as you go withholding tax (PAYG) to the Australian Taxation Office (ATO)?

    Yes

    2. Are you required to remit PAYG withholding tax to the Country A Government?

    Decline to rule - this is a Country A Government matter.

    3. Can the employee claim a credit for the tax paid to the Country A Government when the employee lodges their Australian tax return?

    Decline to rule - this is dependent on whether there is tax payable to Country A.

This ruling applies for the following period

Year ended 30 June 2016

The scheme commences on

1 July 2015

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 wish to re-locate Australian resident employees to work in projects on Country A on a short term basis of less than 90 days.

Relevant legislative provisions

Taxation Administration Act 1953 Section Sch1-12-35.

Taxation Administration Act 1953 Section Sch1-12-40.

Taxation Administration Act 1953 Section Sch1-18-15.

Taxation Administration Act 1953 Section Sch1-15-10.

Taxation Administration Act 1953 Section Sch1-16-70

Reasons for decision

If you have any employees working in a foreign country and their payments do not meet any of the conditions to be exempt, you should:

    • withhold an amount from payments made to them

    • provide each payee with a PAYG payment summary - foreign employment (NAT 73297).

If an employee is a foreign resident, then you do not withhold tax.

The PAYG payment summary - foreign employment you provide to your employees must include:

    • the amounts that relate to the period of foreign employment

    • any tax you withheld and paid to a foreign government.

Further information about PAYG withholding and employees who work in a foreign country can be found by searching for QA22115 on ATO.gov.au.


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