Internal Revenue Code · 26 U.S.C.
§ 895. Income derived by a foreign central bank of issue from obligations of the United States or from bank deposits
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 895
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- May 4, 1961 by Pub. L. 87–29
- Last amended
- November 13, 1966 by Pub. L. 89–809
- Amendments
- 1 dated changes in the source credit
- Length
- 153 words · about 1 min to read
- Cross-references
- cites 0; cited by 0 Code sections and 3 other regulations
- Regulations
- 1 issued under this section
Income derived by a foreign central bank of issue from obligations of the United States or of any agency or instrumentality thereof (including beneficial interests, participations, and other instruments issued under section 302(c) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717)) which are owned by such foreign central bank of issue, or derived from interest on deposits with persons carrying on the banking business, shall not be included in gross income and shall be exempt from taxation under this subtitle unless such obligations or deposits are held for, or used in connection with, the conduct of commercial banking functions or other commercial activities. For purposes of the preceding sentence the Bank for International Settlements shall be treated as a foreign central bank of issue.
(Added Pub. L. 87–29, § 1(a), May 4, 1961, 75 Stat. 64; amended Pub. L. 89–809, title I, § 102(a)(4)(A), Nov. 13, 1966, 80 Stat. 1543.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 895
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
Cited in 3 regulations not issued under it
- § 1.163-5 Denial of interest deduction on certain obligations issued after December 31, 1982, unless issued in registered form.
- § 1.1441-1 Requirement for the deduction and withholding of tax on payments to foreign persons.
- § 1.1441-8 Exemption from withholding for payments to foreign governments, international organizations, foreign central banks of issue, and the Bank for International Settlements.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 89–809
- Added by Pub. L. 87–29
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter N Tax Based on Income From Sources Within or Without the United States
- Part II NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
- Subpart D Miscellaneous Provisions
Nearby sections
- § 891 Doubling of rates of tax on citizens and corporations of certain foreign countries
- § 892 Income of foreign governments and of international organizations
- § 893 Compensation of employees of foreign governments or international organizations
- § 894 Income affected by treaty
- § 895 Income derived by a foreign central bank of issue from obligations of the United States or from bank deposits
- § 896 Adjustment of tax on nationals, residents, and corporations of certain foreign countries
- § 897 Disposition of investment in United States real property
- § 898 Taxable year of certain foreign corporations
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1966—Pub. L. 89–809 exempted income derived from obligations of agencies or instrumentalities of the United States and income derived from interest on deposits with persons carrying on the banking business, inserted “(including beneficial interests, participations, and other instruments issued under section 302(c) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717)),” and inserted sentence requiring the Bank for International Settlements to be treated as a foreign central bank of issue.
Statutory Notes and Related Subsidiaries
Effective Date of 1966 Amendment
Amendment by Pub. L. 89–809 applicable with respect to taxable years beginning after Dec. 31, 1966, except that in applying section 864(c)(4)(B)(iii) of this title with respect to a binding contract entered into on or before Feb. 24, 1966, activities in the United States on or before such date in negotiating or carrying out such contract shall not be taken into account, see section 102(e)(1) of Pub. L. 89–809, set out as a note under section 861 of this title.
Effective Date
Pub. L. 87–29, § 1(c), May 4, 1961, 75 Stat. 64, provided that: “The amendments made by subsections (a) and (b) [enacting this section and amending analysis preceding section 891 of this title] shall be effective with respect to income received in taxable years beginning after December 31, 1960.”