[Code of Federal Regulations]
[Title 26, Volume 18, Parts 500 to 599]
[Revised as of April 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR509.113]

[Page 45]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY 
                               (Continued)
 
PART 509--SWITZERLAND--Table of Contents
 
                       Subpart--General Income Tax
 
Sec. 509.113  Government wages, salaries, and pensions.

    (a) General. Under Article XI of the convention any wage, salary, or 
similar compensation, or any pension, paid by Switzerland or any agency 
or instrumentality thereof, or by any political subdivisions or other 
public authorities of Switzerland, to any alien individual (whether or 
not a resident of the United States) or to any individual who occupies 
the dual status of a citizen of the United States and a citizen of 
Switzerland shall not be included in gross income and shall be exempt 
from United States tax, even though at some time during the taxable year 
such individual has engaged in trade or business in the United States 
through a permanent establishment situated therein.
    (b) Definition. As used in this section, the term ``pensions'' means 
periodic payments made in consideration for services rendered or by way 
of compensation for injuries received. Under Article XV(2) of the 
convention the exclusion from gross income, and exemption from United 
States tax, provided by this section shall not be denied despite the 
provisions of Article XV. See Sec. 509.118.
    (c) Cross reference. For the taxation generally of compensation of 
alien employees of foreign governments and the consequences of executing 
and filing the waiver provided for in section 247(b) of the Immigration 
and Nationality Act, see section 893 of the Internal Revenue Code of 
1954 and the regulations thereunder.