26-U.S.C.-895
§895 – Income Derived By A Foreign Central Bank of Issue From Obligations of The United States Or From Bank Deposits
Pathway
Title 26 > Subtitle A > Chapter 1 > Subchapter N > Part II > Subpart D > Section 895
Details
- Reference: Section 895
- Legend: §895 – Income Derived By A Foreign Central Bank of Issue From Obligations of The United States Or From Bank Deposits
- USCode Year: 2013
Provision Content
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.)
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.
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.
U.S. Encyclopedia of Law Coverage
26-U.S.C.-875 in the Legal Encyclopedia: Income Taxes
In this entry about 26-U.S.C.-875, find legal reference material, bibliographies and premiere content related to income taxes in the American Encyclopedia of Law, presenting a comprehensive view of the United States income taxes-specific issues, written by authorities in the field.
26-U.S.C.-872 in the Legal Encyclopedia: Tax Liability
In this entry about 26-U.S.C.-872, find legal reference material, bibliographies and premiere content related to tax liability in the American Encyclopedia of Law, presenting a comprehensive view of the United States tax liability-specific issues, written by authorities in the field.
26-U.S.C.-871 in the Legal Encyclopedia: Taxation
In this entry about 26-U.S.C.-871, find legal reference material, bibliographies and premiere content related to taxation in the American Encyclopedia of Law, presenting a comprehensive view of the United States taxation-specific issues, written by authorities in the field.
26-U.S.C.-873 in the Legal Encyclopedia: Liability
In this entry about 26-U.S.C.-873, find legal reference material, bibliographies and premiere content related to liability in the American Encyclopedia of Law, presenting a comprehensive view of the United States liability-specific issues, written by authorities in the field.
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