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IRS Tax Map 2008
Current IRS Tax Map

taxmap/pubs/p519-049.htm#en_us_publink1000222749

Exemption Under 
U.S. Tax Law(p60)


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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.
EIC
The exemption under U.S. tax law applies only to current employees and not to former employees. Pensions received by former employees living in the United States do not qualify for the exemption discussed here.
taxmap/pubs/p519-049.htm#en_us_publink1000222751

Employees of foreign governments.(p60)


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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 to U.S. government employees.
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Certification.(p60)
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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.
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Employees of international organizations.(p60)


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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. However, see Aliens who keep immigrant status, later, for a special rule that may affect your qualifying for this exemption.
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.
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Aliens who keep immigrant status.(p60)


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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, you are exempt from U.S. tax under an income tax treaty, consular agreement, or international agreement, and the exemption is not dependent upon U.S. internal revenue laws.
For more information about a specific foreign country or international organization, send an email to embassy@irs.gov.