Issue
Is income received by way of salary by an Australian resident taxpayer from the International Monetary Fund (IMF) taxable in Australia?
Decision
No. The taxpayer is exempt from taxation in Australia on the salary received from the IMF.
Facts
The taxpayer accepted a twelve month contract to work overseas as an employee of the International Monetary Fund (IMF).
Reasons For Decision
Salary received by a person who holds an office in a specified international organisation may be exempt from Australian income tax pursuant to regulations made under the International Organisations (Privileges and Immunities) Act 1963 (IO(P&I)A). Taxation Determination TD 92/153 provides that the phrase 'person who holds an office' in relation to a prescribed international organisation includes those people who work as employees for that organisation. The phrase does not include experts or consultants.
The IMF is specified as an international organisation to which the IO(P&I)A applies (schedule to Specialised Agencies (Privileges and Immunities) Regulations 1986 (Statutory Rule 1986, No. 67)).
The privileges and immunities of officers (other than high officers) of such international organisations are specified in Part 1 of the Fourth Schedule of the IO(P&I)A. Paragraph 2 of Part 1 of the Fourth Schedule (IO(P&I)A) provides that salaries received from the organisation are exempt from taxation in Australia.
Amendment History
Date of amendment Part Comment 14 October 2013 Reasons For Decision - para 1 Minor format change. Related ATO Interpretative Decisions Related ATO Interpretative Decisions added.
Date of amendment | Part | Comment
14 October 2013 | Reasons For Decision - para 1 | Minor format change.
Related ATO Interpretative Decisions | Related ATO Interpretative Decisions added.