Treasury Regulations · 26 CFR
§ 31.3306(c)(12)-1. Services in employ of wholly owned instrumentality of foreign government.
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. § 3306(c)(12)
Cite as 26 CFR § 31.3306(c)(12)-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Source
- T.D. 6516, 25 FR 13032, Dec. 20, 1960; 25 FR 14021, Dec. 31, 1960, unless otherwise noted.
- Issued under
- 26 U.S.C. § 3306(c)(12)
- Length
- 140 words · about 1 min to read
¶(a) Services performed by an employee in the employ of certain instrumentalities of a foreign government are excepted from employment. The exception includes all services performed in the employ of an instrumentality of the government of a foreign country, if—
¶(1) The instrumentality is wholly owned by the foreign government;
¶(2) The services are of a character similar to those performed in foreign countries by employees of the United States Government or of an instrumentality thereof; and
¶(3) The Secretary of State certifies to the Secretary of the Treasury that the foreign government, with respect to whose instrumentality exemption is claimed, grants an equivalent exemption with respect to services performed in the foreign country by employees of the United States Government and of instrumentalities thereof.
¶(b) For purposes of this exception, the citizenship or residence of the employee is immaterial.
Where it sits in 26 CFR
- Subchapter C Employment taxes and collection of income tax at source
- Part 31 Employment taxes and collection of income tax at source
- Subpart D Federal Unemployment Tax Act (Chapter 23, Internal Revenue Code of 1954)
Nearby sections
- § 31.3306(c)(10)-1 Services in the employ of certain organizations exempt from income tax.
- § 31.3306(c)(10)-2 Services of student in employ of school, college, or university.
- § 31.3306(c)(10)-3 Services before 1962 in employ of certain employees' beneficiary associations.
- § 31.3306(c)(11)-1 Services in employ of foreign government.
- § 31.3306(c)(12)-1 Services in employ of wholly owned instrumentality of foreign government.
- § 31.3306(c)(13)-1 Services of student nurse or hospital intern.
- § 31.3306(c)(14)-1 Services of insurance agent or solicitor.
- § 31.3306(c)(15)-1 Services in delivery or distribution of newspapers, shopping news, or magazines.
- § 31.3306(c)(16)-1 Services in employ of international organization.