PUBLIC LAWS-CH. 652 -DEC. 29, 1945 Internal Revenue Code, amendments. 53 Stat. 48 . 26U.S. C. §116(). 53 Stat. 50 . 26 U. S. C., Supp. IV, §116 (h) (1). "Employment." 53 Stat. 178, 1385, 1386. 26U.S.C. §1426 (b). 53 Stat. 187,1395. 26 U. S.C. 1607 (c). be admitted (when imported in connection with the arrival of the owner) free of customs duties and free of internal-revenue taxes imposed upon or by reason of importation. SEC. 4 . The Internal Revenue Code is hereby amended as follows: (a) Effective with respect to taxable years beginning after Decem- ber 31, 1943, section 116 (c), relating to the exclusion from gross income of income of foreign governments, is amended to read as follows: " (c) INCOME OF FOREIGN GOVERNMENTS AND OF INTERNATIONAL ORGANIZATIONS. -The income of foreign governments or international organizations received from investments in the United States in stocks, bonds, or other domestic securities, owned by such foreign govern- ments or by international organizations, or from interest on deposits in banks in the United States of moneys belonging to such foreign governments or international organizations, or from any other source within the United States." (b) Effective with respect to taxable years beginning after Decem- ber 31, 1943, section 116 (h) (1), relating to the exclusion from gross income of amounts paid employees of foreign governments, is amended to read as follows: "(1) RILE FOR EXCLUSION. -Wages, fees, or salary of any employee of a foreign government or of an international organi- zation or of the Commonwealth of the Philippines (including a consular or other officer, or a nondiplomatic representative), received as compensation for official services to such government, international organization, or such Commonwealth- "(A) If such employee is not a citizen of the United States, or is a citizen of the Commonwealth of the Philippines (whether or not a citizen of the United States); and "(B) If, in the case of an employee of a foreign government or of the Commonwealth of the Philippines, the services are of a character similar to those performed by employees of the Govern- ment of the United States in foreign countries or in the Common- wealth of the Philippines, as the case may be; and "(C) If, in the case of an employee of a foreign government or the Commonwealth of the Philippines, the foreign government or the Commonwealth grants an equivalent exemption to employees of the Government of the United States performing sinilar services in such foreign country or such Commonwealth, as the case may be." (c) Effective January 1, 1946, section 1426 (b), defining the term "employment" for the purposes of the Federal Insurance Contribu- tions Act, is amended (1) by striking out the word "or" at the end of paragraph (14), (2) by striking out the period at the end of para- graph (15) and inserting in lieu thereof a semicolon and the word "or", and (3) by inserting at the end of the subsection the following new paragraph: "(16) Service performed in the employ of an international organization." (d) Effective January 1, 1946, section 1607 (c), defining the term "employment" for the purposes of the Federal Unemployment Tax Act, is amended (1) by striking out the word "or" at the end of paragraph (14), (2) by striking out the period at the end of para- graph (15) and inserting in lieu thereof a semicolon and the word "or", and (3) by inserting at the end of the subsection the following new paragraph: "(16) Service performed in the employ of an international organization." 670 [59 STAT.
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