Federal Register of Legislation - Australian Government

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Notices & Notifications as made
This instrument allows employers to reduce the amount of Australian pay as you go withholding from payments made to Australian individuals by the amount of tax withheld and paid to a foreign country where the income was earned. This will ensure that the amount of tax withheld from each individual will be broadly equivalent to the amount of tax payable on that income in Australia.
Administered by: Treasury
Registered 27 Sep 2019
Tabling HistoryDate
Tabled HR14-Oct-2019
Tabled Senate14-Oct-2019

Legislative Instrument

 

Taxation Administration:  Individuals Engaged in Foreign Service Variation Notice 2019

 

I, Louise Clarke, Deputy Commissioner Policy, Analysis and Legislation, make this determination under section 15-15 of Schedule 1 to the Taxation Administration Act 1953.

 

 

Louise Clarke

Deputy Commissioner of Taxation

Dated: 3 September 2019

 

 

1.            Name of instrument

This determination is the Taxation Administration:  Individuals Engaged in Foreign Service Variation Notice 2019.

 

2.            Commencement

This instrument commences on the day after it is registered on the Federal Register of Legislation. When it is registered this instrument repeals and replaces Taxation Administration Act 1953 – PAYG withholding – Individuals engaged in foreign service (F2009L02794) registered on 14 July 2009.

 

3.            Application

This instrument applies to payments covered by subdivision 12-B of Schedule 1 to the Taxation Administration Act 1953 that are made to individuals engaged in foreign service whose foreign earnings from that service are not exempt under subsection 23AG of the Income Tax Assessment Act 1936.

 

4.            Variation

The Australian tax amount to be withheld is calculated using the following steps:-

Step 1

Calculate the Australian dollar equivalent of the foreign earnings.

Step 2

Use the relevant pay as you go withholding tax table to calculate the amount of tax that would normally be withheld on those earnings. The amount is based on the information the payee supplied on a Tax file number declaration and, if applicable, a Withholding declaration.

Step 3

Subtract the Australian dollar equivalent of the amount of tax withheld and paid to the foreign country from the answer to Step 2.

Step 4

The result of Step 3 is the amount to withhold. If the result from Step 3 is zero or negative, there is no amount to withhold.