Edited version of private advice

Authorisation Number: 1052206689114

Date of advice: 8 January 2024

Ruling

Subject: Residency

Question

Are you a resident of Australia for taxation purposes?

Answer

No

This ruling applies for the following period:

Period ended 30 June 2024

The scheme commenced on:

1 November 2022

Relevant facts and circumstances

You were born in Country A.

You are a citizen of Australia and Country A.

You relocated to Country B.

You accepted a job opportunity in Country B.

You were allowed entry into Country B on a Highly Skilled Migrant Visa.

You visa was supplied by your employer in Country B.

The visa is valid until X XXXX.

You rent an apartment in Country B.

You are a resident of Country B for Taxation purposes.

You do not intend to apply for citizenship/permanent residency in Country B.

You have a bank account in Country B.

You are very likely to return to Australia in the coming years.

Your spouse and child relocated to Country B with you.

Your child is enrolled in international day-care.

You did not develop any professional, social or sporting connections in Australia.

You informed the Australian Electoral Commission and Medicare you were departing Australia.

You cancelled your private health insurance.

You own an apartment in XXXX which is currently rented to an unrelated party.

You do not use this address as your address on any documents.

You have an Australian bank account.

You advised the Australian bank you were moving overseas.

You still hold shares in Australia.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 6(1)

Reasons for decision

For tax purposes, you are a resident of Australia if you meet at least one of the following tests. You are not a resident of Australia if you do not meet any of the tests.

The resides test (otherwise known as the ordinary concepts test)

•         The domicile test

•         The 183 day test

•         The Commonwealth superannuation fund test.

We have considered your circumstances, and conclude that you are not a resident of Australia for the period 1 July 2023 to 30 June 2024, as follows:

•         You are not a resident of Australia according to the resides test.

•         You do not meet the domicile test because your domicile is not in Australia

•         You do not meet the 183-day test because you will not be in Australia for 183 days or more during the 2024 income year.

•         You do not fulfil the requirements of the Commonwealth Superannuation test.

More information

For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests.

You may need to lodge an Australian tax return if:

•         you are a foreign resident who earned assessable income that has an Australian source, or who has had tax withheld, during the income year.

•         during the time you are a foreign resident, all Australian-sourced income is assessable.

If this is the case, in determining your liability to pay tax in Australia it is necessary to consider any applicable double tax agreements

Agreement between Australia and the Kingdom of the Netherlands for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, and Protocol states:

Article 4

Residence

(2) In relation to income from sources in the Netherlands, a person who is subject to Australian tax on income which is from sources in Australia shall not be treated as a resident of Australia unless the income from sources in the Netherlands is subject to Australian tax or, if that income is exempt from Australian tax, it is so exempt solely because it is subject to Netherlands tax.

Article 6

Income from real property

(1) Income from real property, including royalties and other payments in respect of the operation of mines or quarries or of the exploitation of any natural resource, may be taxed in the State in which the real property, mines, quarries, or natural resources are situated.