This Ruling, issued on Wed 30.1.2013, provides the Commissioner’s view on the meaning of “employer” in the general exclusion provision provided under the Income from Employment Article (or equivalent), of Australia’s tax treaties (short-term visit exception). It also outlines the approach taken in determining who the employer is for the purposes of the short-term visit exception.
The Ruling applies to entities that engage non-resident individuals to render services in Australia and to those non-resident individuals. Broadly, it states that the employer for the purposes of the short-term visit exception is the enterprise to which a non-resident individual renders his or her services in what would be considered an employment relationship.
The Ruling also states that, in determining who the employer is for the purposes of the exception, the Commissioner will have regard to factors such as the existence of a contract, the nature of the contractual relationship, indicators of an employment relationship, and other relevant factors.
It replaces Taxation Ruling TR 2003/11 (The interpretation of the general exclusion provision of the Dependent Personal Services Article, or its equivalent, of Australia’s Double Tax Agreements). The Ruling was previously issued as Draft TR 2012/D4.
DATE OF EFFECT: Applies to income years commencing both before and after its date of issue.
[LTN 19, 30/1/13]