Edited version of private advice

Authorisation Number: 1052341420395

Date of advice: 9 December 2024

Ruling

Subject: Assessable income

Question 1

Is income you earn from your employment in Australia covered by Article X of the relevant Double Taxation Agreement between Australia and Country A (the DTA)?

Answer 1

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 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 2

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:

XX/XX/20XX

Relevant facts and circumstances

You are a citizen of Country A.

You are employed by a organisation wholly owned, controlled, and funded by the Government of County A.

From XX/20XX, the Employer has had a presence in Australia with a small office.

You have been working with the Employer from XX/XX/20XX until XX/XX/20XX.

You entered Australia on a 482 visa, sponsored by your employer.

Your position requires you to work night shifts in Country A (which is daytime in Australia).

You are an Australian resident for tax purposes.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 6-5

International Tax Agreements Act 1953