There are no steadfast rules or Department of State regulations that state that an EFM of a diplomat operating a business for the exclusive use of other diplomats is exempt from local business start-up policies, including registration and paying local taxes. However, since both the owner/operator of the business and all clients or customers have diplomatic status, the logical extension would be that this exemption does exist. Still, be careful in making such an assumption. Check with the Management Officer to determine if in the past, businesses of this sort were accepted and/or ignored by the host government
