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Edited version of private advice
Authorisation Number: 1051991963846
Date of advice: 15 June 2022
Ruling
Subject: Double tax agreement
Question
Are the fellowship payments assessable in Australia?
Answer
No.
Based on the information provided to the Commissioner the payments you received are not assessable in Australia.
The Double Tax Agreement (DTA) between Australia and Country Z gives Country Z the sole taxing rights over the income under the relevant Article, as you are not a resident of Australia for taxation purposes and the employment was exercised in Country Z.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are a non-resident of Australia for taxation purposes.
You were awarded a fellowship several years ago.
You receive payments from an organisation.
The fellowship is for several years.
A portion of the fellowship is to be done overseas.
You commenced this fellowship in the year after it was granted.
You applied for another fellowship in Country Z and was granted a suspension to the first fellowship.
You participated in the second fellowship for a couple of years.
You recommenced the first fellowship in a later year.
You were living in Country Z and you exercised the employment in Country Z.
You were paid from an organisation who withheld at non-resident rates.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5