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Income exempt under the International Organisations (Privileges and Immunities) Act

April 2019

A draft ruling from the ATO provides updated guidance on income derived by someone who is working for certain international organisations.

An updated ruling from the ATO highlights guidance on income that is derived by someone who is working with certain international organisations, clarifying what is and isn't exempt from income tax.

This may include:

  • a person who holds, or is performing the duties of, an office prescribed by regulations to be a high office
  • a person who is accredited to, or is in attendance at an international conference convened by an international organisation
  • a person who holds an office in an international organisation (but who is not a holder of a high office)
  • a person who is serving on a committee, or is participating in the work or performing a mission

This draft ruling looks at how to determine whether particular income of international organisations and persons connected with international organisations is exempt from tax under the International Organisations (Privileges and Immunities) Act (the 'Act').

Section 6-20 ITAA 1997 states that an amount is exempt income if it is made exempt from income tax under the tax legislation or another Commonwealth law.

The extent to which income of international organisations and persons connected with international organisations is exempt depends on the provisions of the Regulations to the Act, and may be different for each international organisation.

The Regulations set out:

  • Whether income of a particular organisation or income of persons connected with that organisation is exempt income;
  • Whether the organisation is subject to a particular taxation liability; or
  • How other taxation matters that apply in relation to that organisation (for example, PAYG withholding) and persons connected with it.

The legislation is complex and it is important to ensure that taxpayers get the right guideance from an international tax specialist. Please contact us on 02 9957 4033 for more information.

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Disclaimer

This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.

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