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Edited version of your written advice
Authorisation Number: 1051445363229
Date of advice: 12 November 2018
Ruling
Subject: Residency of Australia for taxation purposes
Question 1
Are you a resident of Australia for income tax purposes?
Answer
No. Having considered your circumstances as a whole and the residency tests, it is accepted that you are not a resident of Australia for income tax purposes under section 995-1(1) if the Income Tax Assessment Act 1997 (ITAA) and subsection 6(1) of the ITAA 1936. Further information on residency, it can be found by searching 'QC 33232' on ato.gov.au
Question 2
Is the income that you derive in Country B assessable in Australia?
Answer
No. As it is accepted that you are not a resident of Australia for income tax purposes, the income that you derive from your overseas employment in Country B is not assessable in Australia under section 6-5(2) of the ITAA 1997.
This ruling applies for the following periods:
For the financial year ended 30 June 20XX
For the financial year ended 30 June 20XX
For the financial year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You were born in Australia.
You are a citizen of Australia.
You departed Australia for work purposes.
You arrived in Country B on a long stay visa supplied by your employer.
This visa allowed you to stay until the end of the financial year.
After starting work you have since obtained a resident card which allows you to stay for a further three years.
You commenced working in Country B.
Your employment in Country B was sought separately from your employment in Australia.
You are paid monthly.
Your salary is exempt from income tax however you pay an internal tax.
You confirmed you are a resident of Country B for taxation purposes after checking with the Country B tax office and with the HR department of your employer.
You are required to submit income tax returns in Country B.
You intend to reside overseas permanently.
You formed this intention when you signed a contract to sell your property.
You have not returned to Australia since leaving.
You live in a furnished apartment, rented in your name in Country B.
You have purchased sheets, pillows and other essential items and personal effects for the apartment in Country B.
The apartment in Country B is not a serviced apartment.
You have sold a property in Australia that you owned which was leased out.
You have maintained superannuation and bank accounts in Australia.
You sold or gave away most of your household effects from Australia.
You left a limited number of items in Australia.
You have purchased a motor vehicle, household effects and set up a bank account in Country B.
You have not obtained any licences or overseas qualifications in Country B.
You have joined some gyms in Country B.
You are paid by direct deposit into a Country B bank account.
You do not have a spouse or dependents.
You are not eligible to contribute to the PSS or the CSS Commonwealth Super funds.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 995-1(1)
Income Tax Assessment Act 1936 section 6(1)
Income Tax Assessment Act 1997 subsection 6-5(2)
International Tax Agreements Act 1953 Section 5