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Edited version of private advice
Authorisation Number: 1052339452958
Date of advice: 9 December 2024
Ruling
Subject: Assessable income - residency
Question 1
Is income you earn from your employment in Australia covered by Article X of the of the relevant Double Taxation Agreement between Australia and Country A (the DTA)?
Answer
Yes.
Your employer is wholly owned, controlled, and funded by Country A's Government. Therefore, Article X of the DTA will apply to you as you are you are providing services rendered in the discharge of governmental functions.
Question 2
Is your income considered foreign exempt income and therefore not assessable income in Australia in accordance with section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
You are a citizen only of Country A, residing in Australia on a visa sponsored by your employer solely for the purposes of performing your employment duties. As such, Article X of the DTA provides that income you earn from this employment will be taxable only in Country A.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You were born in Country A and a citizen of Country A.
You are employed by a XXXXX wholly owned, controlled, and funded by the Government of Country A.
You have entered Australia on a temporary visa, sponsored by the employer.
Your contract of employment in Australia dates from XXX 20XX to XXX 20XX.
Your job requires you to work nighttime shifts in Country A (which is daytime in Australia).
The period of a posting for an individual working for the employer is on average X years. When you have completed your assignment in Australia you will return to Country A.
You are an Australian resident for taxation purposes.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
International Tax Agreements Act 1953 subsection 4(1)
International Tax Agreements Act 1953 subsection 4(2)