Internal Revenue Code:Sec. 893. Compensation of employees of foreign governments or international organizations

From TaxAlmanac

Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter N - Tax Based on Income From Sources Within or Without
              the United States
          PART II - NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
           Subpart D - Miscellaneous Provisions
         

Statute

    Sec. 893. Compensation of employees of foreign governments or
        international organizations
 
    (a) Rule for exclusion
      Wages, fees, or salary of any employee of a foreign government or
    of an international organization (including a consular or other
    officer, or a nondiplomatic representative), received as
    compensation for official services to such government or
    international organization shall not be included in gross income
    and shall be exempt from taxation under this subtitle if -
        (1) such employee is not a citizen of the United States, or is
      a citizen of the Republic of the Philippines (whether or not a
      citizen of the United States); and
        (2) in the case of an employee of a foreign government, the
      services are of a character similar to those performed by
      employees of the Government of the United States in foreign
      countries; and
        (3) in the case of an employee of a foreign government, the
      foreign government grants an equivalent exemption to employees of
      the Government of the United States performing similar services
      in such foreign country.
    (b) Certificate by Secretary of State
      The Secretary of State shall certify to the Secretary of the
    Treasury the names of the foreign countries which grant an
    equivalent exemption to the employees of the Government of the
    United States performing services in such foreign countries, and
    the character of the services performed by employees of the
    Government of the United States in foreign countries.
    (c) Limitation on exclusion
      Subsection (a) shall not apply to -
        (1) any employee of a controlled commercial entity (as defined
      in section 892(a)(2)(B)), or
        (2) any employee of a foreign government whose services are
      primarily in connection with a commercial activity (whether
      within or outside the United States) of the foreign government.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 284; Pub. L. 100-647, title I,
    Sec. 1012(t)(4), Nov. 10, 1988, 102 Stat. 3527.)
 

Miscellaneous

                                 AMENDMENTS
      1988 - Subsec. (c). Pub. L. 100-647 added subsec. (c).
                      EFFECTIVE DATE OF 1988 AMENDMENT
      Amendment by Pub. L. 100-647 effective, except as otherwise
    provided, as if included in the provision of the Tax Reform Act of
    1986, Pub. L. 99-514, to which such amendment relates, see section
    1019(a) of Pub. L. 100-647, set out as a note under section 1 of
    this title.