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Treasury Regulations · 26 CFR

§ 1.892-3. Income of foreign governments.

In effect eCFR current as of October 15, 2026

Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).

Regulation under 26 U.S.C. § 892

Cite as 26 CFR § 1.892-3

At a glance

Read from the text and its source citation. Not part of the regulation.

Status
In the current eCFR
Issued
December 15, 2025 by T.D. 10042
Issued under
26 U.S.C. § 892
Length
455 words · about 2 min to read
Defines
1 term
Cross-references
cites 6 Code sections and 4 regulations; cited by 3
(a) Types of income exempt—
(1) In general. For further guidance, see § 1.892-3T(a)(1).
(2) Income from investments. For further guidance, see § 1.892-3T(a)(2).
(3) Securities. For further guidance, see § 1.892-3T(a)(3).
(4) Financial instrument—
(i) Definition. For purposes of this paragraph (a), the term financial instrument includes:
(A) Any interest rate, currency, equity, or commodity (as the term is used in section 864(b)(2)(B) and § 1.864-2(d)) notional principal contract (as the term is used in section 475(c)(2)); or
(B) Any evidence of an interest in options, forward or futures contracts, and any other similar contracts, the value of which, or any payment or other transfer with respect to which, is (directly or indirectly) determined by reference to one or more of the following:
(1) Commodity (as the term is used in section 864(b)(2)(B) and § 1.864-2(d));
(2) Currency;
(3) Share of stock;
(4) Partnership or beneficial ownership interest in a widely held or publicly traded partnership or trust;
(5) Note, bond, debenture, or other evidence of indebtedness; or
(6) Notional principal contract described in paragraph (a)(4)(i)(A) of this section.
(ii) Special rule. For purposes of paragraph (a)(4)(i) of this section, nonfunctional currency or gold is a financial instrument when physically held by a foreign central bank of issue (as defined in § 1.895-1(b)).
(5) Execution of financial or monetary policy. For further guidance, see § 1.892-3T(a)(5).
(6) Dividend equivalents. Income from investments in stocks includes the payment of a dividend equivalent described in section 871(m) and the regulations in this part under section 871(m).
(b) Illustrations. For further guidance, see § 1.892-3T(b).
(c) Applicability dates.
(1) Paragraph (a)(4) of this section applies to taxable years beginning on or after December 15, 2025. See § 1.892-3T(a)(4), as contained in 26 CFR in part 1 in effect on April 1, 2025, for the rules that apply to taxable years beginning before December 15, 2025. A taxpayer may choose to apply paragraph (a)(4) of this section to a taxable year beginning before December 15, 2025, if the period of limitations on assessment of the taxable year is open under section 6501 and the taxpayer and entities that are related (within the meaning of section 267(b) or section 707(b)) to the taxpayer apply this rule and §§ 1.892-4 and 1.892-5 in their entirety to the taxable year and all succeeding taxable years beginning before December 15, 2025.
(2) Paragraph (a)(6) of this section applies to payments made on or after December 5, 2013.

[T.D. 10042, 90 FR 57915, Dec. 15, 2025]

Terms defined here

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Other regulations under § 892

Cross-references

Computed from the citations in the text of 26 CFR.

Code sections it cites

Regulations it cites

Cited by 3 other regulations

Amendment history

From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.

  1. Issued by T.D. 10042 (90 FR 57915)

Where it sits in 26 CFR

  1. Subchapter A Income tax
  2. Part 1 Income taxes
  3. Miscellaneous provisions

Nearby sections