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Edited version of private advice
Authorisation Number: 1052266845676
Date of advice: 26 June 2024
Ruling
Subject: Residency - seafarer
Question 1
Will the employment income that you derive from your foreign employer when you exercise your employment in Australia be subject to tax in Australia under Article 15 of the Double Tax Agreement between Australia and Country A (Country A Agreement)?
Answer
No.
As you are a foreign resident you are exempt from paying tax in Australia when your stay in the country is less than XXX days.
This ruling applies for the following periods:
Year ending XX June 20XX
Year ending XX June 20XX
The scheme commenced on:
XX May 20XX
Relevant facts and circumstances
You are a Country A Citizen.
You reside in Country A.
You are liable for tax in Country A.
You are employed on Ship A, which is currently working in Australia waters.
The nationality of the ship is Country B.
You are employed by Company A on a Country C contract.
You are paid from Country C.
Your Company's Head Office is based in Country D.
You work X weeks on and X weeks off rotation with no intention of staying or living in Australia.
You hold an SCXXX Visa.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 6(1)
Income Tax Assessment Act 1997 Subsection 6-5(3)
International Tax Agreements Act 1953
Reasons for decision
Question 1
Detailed reasoning
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 XXX-day test
• The Commonwealth superannuation fund test.
We have considered your circumstances, and conclude that you are not a resident of Australia for 20XX- and 20XX-income years, 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 XXX-day test because you were not in Australia for XXX days or more during the 20XX- and 20XX-income year/s.
• You do not fulfill the requirements of the Commonwealth Superannuation test.
More information
For more information about residency, see Taxation Ruling TR 2023/1 Income tax: residency tests for individuals.