An instrument entitled "PAYG withholding - Individuals engaged in foreign service" was made by Erin Kathleen Holland, Deputy Commissioner of Taxation, on 10 July 2009 and registered on the Federal Register of Legislative Instruments on 14 July 2009.
The instrument ensures the withholding from payments made to individuals employed in a foreign country or countries closely approximates the Australian income tax that will be payable on the relevant income. The variation 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 s 23AG of ITAA 1936. The variation is made under the power contained in s 15-15 of Schedule 1 to the Taxation Administration Act 1953 to meet the special circumstances of that class of cases.
For a copy of the instrument, go here
For a copy of the Explanatory Statement, click on ES/Supp Material