§893 — Title 26 Internal Revenue Code | U.S. Code

§893 Compensation of employees of foreign governments or international organizations

Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter N— - Tax Based on Income From Sources Within or Without the United States › Part PART II— - NONRESIDENT ALIENS AND FOREIGN CORPORATIONS › Subpart Subpart D— - Miscellaneous Provisions › § 893

Last updated Apr 6, 2026|Official source

Summary

Payments for official work by employees of foreign governments or international organizations are not taxed under this part of the tax code if three things are true: the worker is not a U.S. citizen or is a citizen of the Republic of the Philippines (even if also a U.S. citizen); and if the worker is employed by a foreign government, the work is like what U.S. government employees do abroad; and that foreign government gives the same tax break to U.S. government employees in that country. The Secretary of State must tell the Secretary of the Treasury which countries offer the same exemption and what kinds of U.S. services are comparable. The tax break does not apply to employees of a controlled commercial entity (a type of government-owned business) or to employees whose main duties are tied to the foreign government's commercial activities, inside or outside the United States.

Title 26, §893

Internal Revenue Code — Source: USLM XML via OLRC

(a)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)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)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.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1988—Subsec. (c). Pub. L. 100–647 added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment 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.