§ 892 Income of foreign governments and of international organizations

OLRC 119-134 · eCFR 2026-10-19 · 10 regs · 3 amending Acts · cited by 1 sections

Enacted 1954 · Act Aug. 16, 1954, ch. 736 Amended · 3 Acts · From 1939 Code § 22(b)(8) · § 116(c)

1954198619881990(a) Foreign governments(b) International organizations(c) Regulations
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§ 892 Income of foreign governments and of international organizations
    § 1.892-1T Purpose and scope of regulations (temporary regulations).§ 1.892-2T Foreign government defined (temporary regulations).§ 1.892-3 Income of foreign governments.§ 1.892-3T Income of foreign governments (temporary regulations).§ 1.892-4 Commercial activities.§ 1.892-4T Commercial activities (temporary regulations).§ 1.892-5 §1.892-5 Controlled commercial entity.§ 1.892-5T Controlled commercial entity (temporary regulations).§ 1.892-6T Income of international organizations (temporary regulations).§ 1.892-7T Relationship to other Internal Revenue Code sections (temporary regulations).Prop. § 1.892-2 Proposed 2025 · Foreign government defined.Prop. § 1.892-2T Proposed 2025 · Foreign government defined (temporary regulations).Prop. § 1.892-4T Proposed 2025 · Commercial activities (temporary regulations).Prop. § 1.892-4 Proposed 2026 · Commercial activities.Prop. § 1.892-5 Proposed 2026 · Controlled commercial entity.
    Amended 1986
    • 1986 Pub. L. 99-514 Pub. L. 99–514 amended section generally. Prior to amendment, section read as follows: “The income of foreign governments or international organizations received from investments in the United States in stocks, bonds, or other domestic securities, owned by such foreign governments or by international organizations, or from interest on deposits in banks in the United States of moneys belonging to such foreign governments or international organizations, or from any other source within the United States, shall not be included in gross income and shall be exempt from taxation under this subtitle.”

    Cases: Qantas Airways Ltd. v. United States, 62 F.3d 385 (Fed. Cir. 1995)

    Final rules 3

      (a) Foreign governments

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        (1) In general The income of foreign governments received from—

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          (A) investments in the United States in—

          (i) stocks, bonds, or other domestic securities owned by such foreign governments, or

          (ii) financial instruments held in the execution of governmental financial or monetary policy, or

          (B) interest on deposits in banks in the United States of moneys belonging to such foreign governments,

          shall not be included in gross income and shall be exempt from taxation under this subtitle.

          (2) Income received directly or indirectly from commercial activities

          (A) In general Paragraph (1) shall not apply to any income—

          Amended 1988, 1990
          • 1990 Pub. L. 101-508 Pub. L. 101–508 made clarifying amendment to Pub. L. 100–647, § 1012(t)(1). See 1988 Amendment note below.
          • 1988 Pub. L. 100-647 Pub. L. 100–647, § 1012(t)(1), (2), as amended by Pub. L. 101–508, amended cl. (ii) generally and added cl. (iii). Prior to amendment, cl. (ii) read as follows: “received from or by a controlled commercial entity.”
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            (i) derived from the conduct of any commercial activity (whether within or outside the United States),

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              (ii) received by a controlled commercial entity or received (directly or indirectly) from a controlled commercial entity, or

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                (iii) derived from the disposition of any interest in a controlled commercial entity.

                (B) Controlled commercial entity For purposes of subparagraph (A), the term “controlled commercial entity” means any entity engaged in commercial activities (whether within or outside the United States) if the government—

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                  (i) holds (directly or indirectly) any interest in such entity which (by value or voting interest) is 50 percent or more of the total of such interests in such entity, or

                  (ii) holds (directly or indirectly) any other interest in such entity which provides the foreign government with effective control of such entity.

                  For purposes of the preceding sentence, a central bank of issue shall be treated as a controlled commercial entity only if engaged in commercial activities within the United States.

                  (3) Treatment as resident For purposes of this title, a foreign government shall be treated as a corporate resident of its country. A foreign government shall be so treated for purposes of any income tax treaty obligation of the United States if such government grants equivalent treatment to the Government of the United States.

                  Amended 1988
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                    (b) International organizations The income of international organizations received from investments in the United States in stocks, bonds, or other domestic securities owned by such international organizations, or from interest on deposits in banks in the United States of moneys belonging to such international organizations, or from any other source within the United States, shall not be included in gross income and shall be exempt from taxation under this subtitle.

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                      (c) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.