Title 26 — Internal Revenue CodeRelease 119-73
§4373 Exemptions
Title 26 › Subtitle Subtitle D— - Miscellaneous Excise Taxes › Chapter CHAPTER 34— - TAXES ON CERTAIN INSURANCE POLICIES › Subchapter Subchapter A— - Policies Issued By Foreign Insurers › § 4373
Summary
The tax does not apply to amounts that are tied to doing business in the United States, unless a U.S. treaty makes them tax-free. It also does not apply to guarantee bonds filed to secure U.S. payments or government securities.
Full Legal Text
Title 26, §4373
Internal Revenue Code — Source: USLM XML via OLRC
The tax imposed by section 4371 shall not apply to—
(1)Any amount which is effectively connected with the conduct of a trade or business within the United States unless such amount is exempt from the application of section 882(a) pursuant to a treaty obligation of the United States.
(2)Any indemnity bond required to be filed by any person to secure payment of any pension, allowance, allotment, relief, or insurance by the United States, or to secure a duplicate for, or the payment of, any bond, note, certificate of indebtedness, war-saving certificate, warrant or check, issued by the United States.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1988—Par. (1). Pub. L. 100–647 amended par. (1) generally, substituting provisions relating to effectively connected items for provisions relating to domestic agent. 1976—Par. (1). Pub. L. 94–455 substituted “State, or in the District of Columbia, within” for “State, Territory, or District of the United States within”. 1958—Pub. L. 85–859 reenacted section without change.
Statutory Notes and Related Subsidiaries
Effective Date
of 1988 Amendment Pub. L. 100–647, title I, § 1012(q)(13)(B), Nov. 10, 1988, 102 Stat. 3525, provided that: “The amendment made by subparagraph (A) [amending this section] shall apply with respect to premiums paid after the date 30 days after the date of the enactment of this Act [Nov. 10, 1988].”
Effective Date
of 1976 AmendmentAmendment by Pub. L. 94–455 effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1904(d) of Pub. L. 94–455, set out as a note under section 4041 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 4373
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73