The National Directory of Certified Public Accountants

Ask A CPA - Armed Forces Tax Information

Which Countries Have Been Identified As Combat Zones And Hazardous Duty Areas Qualifying For The Combat Pay Exclusion ?

A combat zone is identified by the President of the U.S. in an Executive Order. Combat pay earned in a combat zone is not subject to tax. Combat zones are designated by an Executive Order from the President as areas in which the U.S. Armed Forces are engaging or have engaged in combat. There are currently three such combat zones (including the airspace above each): Afghanistan: By Executive Order No. 13239, Afghanistan (and airspace above) is designated a combat zone beginning September 19, 2001. The Kosovo area: By Executive Order No. 13119 and Public Law 106-21, the following locations (including air space) were designated as a combat zone and a qualified hazardous duty area beginning March 24, 1999. Federal Republic of Yugoslavia (Serbia/Montenegro) Albania, The Adriatic Sea ,The Ionian Sea - north of the 39th parallel (including all of the airspace in connection with the Kosovo operation.) Persian Gulf area: By Executive Order No. 12744, the following locations (and airspace) were designated as a combat zone beginning January 17, 1991. The Persian Gulf, The Red Sea, The Gulf of Oman, The part of the Arabian Sea that is north of 10 degrees north latitude and west of 68 degrees east longitude, The Gulf of Aden, The total land areas of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab Emirates, In addition, the Department of Defense has certified these locations for combat zone tax benefits due to their direct support of military operations, beginning on the listed dates: In support of Operation Enduring Freedom (Afghanistan combat zone): Pakistan, Tajikistan and Jordan - Sept. 19, 2001, Incirlik Air Base, Turkey - Sept. 21, 2001 through Dec. 31, 2005, Kyrgyzstan and Uzbekistan - Oct. 1, 2001, Philippines (only troops with orders referencing Operation Enduring Freedom) - Jan. 9, 2002, Yemen - Apr. 10, 2002, Djibouti - July 1, 2002, Israel - Jan. 1 through July 31, 2003, Somalia - Jan. 1, 2004 In support of Operation Iraqi Freedom (Arabian Peninsula Areas combat zone): Turkey - Jan. 1, 2003 through Dec. 31, 2005, the Mediterranean Sea east of 30? East longitude - Mar. 19 through July 31, 2003, Jordan - Mar. 19, 2003, Egypt - Mar. 19 through Apr. 20, 2003

If you need professional help with "Armed Forces Tax Information" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.