Publication 519 |
2000 Tax Year |
Exemption Under U.S. Tax Law
Employees of foreign governments who do not qualify under a tax
treaty provision and employees of international organizations may
qualify for exemption by meeting the following requirements of U.S.
tax law.
The exemption under U.S. tax law applies only to current employees
and not to former employees. Pensions received by former employees
living in this country do not qualify for exemption.
Employees of foreign governments.
If you are not a U.S. citizen, or if you are a U.S. citizen but
also a citizen of the Philippines, and you work for a foreign
government in the United States, your foreign government salary is
exempt from U.S. tax if you perform services similar to those
performed by U.S. Government employees in that foreign country and
that foreign government grants an equivalent exemption.
Certification.
To qualify for the exemption under U.S. tax law, the foreign
government for which you work must certify to the Department of State
that you are their employee and that you perform services similar to
those performed by employees of the United States in your country.
However, see Aliens who keep immigrant status, later, for a
special rule that may affect your qualifying for this exemption.
Employees of international organizations.
If you work for an international organization in the United States
and you are not a U.S. citizen (or you are a U.S. citizen but are also
a citizen of the Philippines), your salary from that organization is
exempt from U.S. tax.
An international organization is an organization
designated by the President of the United States through Executive
Order to qualify for the privileges, exemptions, and immunities
provided in the International Organizations Immunities Act.
You should find out if you have been made known to, and have been
accepted by, the Secretary of State as an officer or an employee of
that organization, or if you have been designated by the Secretary of
State, before formal notification and acceptance, as a prospective
officer or employee.
If you are claiming exemption, you should know the number of the
Executive Order covering the international organization and should
have some written evidence of your acceptance or designation by the
Secretary of State.
The exemption is denied when, because the Secretary of State
determines your presence in the United States is no longer desirable,
you leave the United States (or after a reasonable time allowed for
leaving the United States). The exemption is also denied when a
foreign country does not allow similar exemptions to U.S. citizens.
Then the Secretary of State can withdraw the privileges, exemptions,
and immunities from the nationals of that foreign country.
Aliens who keep immigrant status.
If you file the waiver provided by section 247(b) of the
Immigration and Nationality Act to keep your immigrant status, you no
longer qualify for the exemption from U.S. tax under U.S. tax law from
the date of filing the waiver with the Attorney General.
However, you do not lose the exemption if you file the
waiver and meet either of the following conditions.
- You are exempt from U.S. tax by an income tax treaty,
consular agreement, or international agreement between the United
States and your country.
- You work for an international organization if the
international agreement creating the international organization
provides that alien employees are exempt from U.S. income tax. Two
international organizations that have such a provision are the
International Monetary Fund (IMF) and the International Bank for
Reconstruction and Development (World Bank).
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