26 U.S.C. § 893 — Compensation of employees of foreign governments or international organizations

submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 274 words · no verdicts yet

in plain englishAI-generated · not legal advice

Certain non-United States citizens, and Filipino citizens, can exclude pay for official foreign-government or international-organization work if the listed service and reciprocal-exemption conditions are met. Commercial-entity employees and primarily commercial work do not qualify.

(a) Wages, fees, or salary for official services to a foreign government or international organization are excluded from gross income and exempt from this subtitle's tax if the employee is not a United States citizen or is a citizen of the Philippines; and, for a foreign-government employee, the work is like work done by United States Government employees abroad and that government gives United States employees an equivalent exemption. (b) The Secretary of State must certify to the Treasury Secretary which countries give that equivalent exemption and what services United States employees perform there. (c) The exclusion does not cover an employee of a “controlled commercial entity” as defined in section 892(a)(2)(B), or a foreign-government employee whose work is primarily connected with that government's commercial activity. This section does not otherwise define those quoted terms.

the actual law source: uscode.house.gov ↗public domain

(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.

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.

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

history & why it existsrecord from the source credit

1954Enacted · Act of Aug. 16, 1954, ch. 736
1988Amended · Pub. L. 100-647 · 102 Stat. 3527

A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.

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