Page:United States Statutes at Large Volume 36 Part 1.djvu/137

 SIXTY-FIRST CONGRESS. Sess. I. Ch. 6. 1909. 113 any foreign country, upon the amount of net income over and above five thousand dollars received by it from business transacted and capital invested within the United States and its Territories, Alaska, and the District of Columbia during such year, exclusive of amounts so received by it as dividends upon stock of other corporations, joint stock companies or associations, or insurance companies, subject to the tax hereby imposed: Provided, however, That nothing in this §{,‘;'§·’,fim,0¤S €x_ section contained sliiall apply to labor, agricultural or horticultural cepwd. organizations, or to fraterna beneficiary societies, orders, or associatrons oplerating under the lodge system, and providing for the pay- ment of 'fe, sic, accident, and other benefits to the members of such societies, orders, or associations, and dependents of such members, nor to domestic building and loan associations, organized and operated exclusively for the mutual benefit of their members, nor to any corporation or association organized and operated exclusively for religious, charitable, or educational purposes, no part of the net income of which inures to the benefit of any private stockholder or individual. _ Second. Such net income shall be ascertained by deductin from ¤e{’fIf§,j;$_j°¤°i°¤ °* the gross amount of the income of such corporation, joint stoci com- ' pany or association, or insurance company, received within the year ggg;_*${j>;;g me om all sources, (first) all the ordinary and necessary expenses crc. pe °” actually paid within the year out of income in the maintenance and operation of its business and properties, including all charges uch as rentals or franchise payments, required to be made as a condition to the continued use or possession of property; (second) all losses ,,,{.*f’“°“»"°"°°‘°"°“· actually sustained within the year and not compensated by insurance or otherwise, including a reasonable allowance for depreciation of property, if any and m the case of insurance comlpanres the sums other t an dividends, paid within the year on [po cy and annuity contracts and the net addition, if any, re uired y law to be made, within the year to reserve funds; (third) interest actually paid ,d{§‘§,‘§f°°‘ °" “"'°"" within the year on its bonded or other indebtedness to an amount of such bonded and other indebtedness not exceeding the paid-up capital stock of such corporation, gpint stock company or association, or insurance company, outstan `ng at the close of the year, and in the case of a ban, banking] association or trust company, all interest actually paid by it wit 'n the year on deposits; (fourth) all sums T¤¤* aid bg it within the year for taxes imposed under the authorigy of the Unite States or of any State or Territory thereof, or impose by the overnment of any forei country as a condition to carrying on gusiness therein; (fifth) aillamounts received by it within the year as .m]Zi",i,°l,`§&?P0 {QE? dividends upon stock of o er corporations, joint stock companies or associations, or insurance companies, subject to the tax hereby hm imposed: Provided, That in the case of a corporation, Joint stoc rorergu oorpost company or association, or msurance company, organize under the "°”" lawsof a foreign country, such net income s all be ascertained by deducting from the gross amount of its income received within the gear from business transacted and calpital invested within the United tates and any of its Territories, Alas a, and the District of Columbia, (first) all the ordinary and necessary expenses actually paid within the g,Q°f,i§’§§{,‘§`.if;,,,,,,,.,$_ year out of earnings in the maintenance and operation of its business °'°· and pgoperty within the United States and its erritories, Alaska, and the istrict of Columbia, including all charges such as rentals or franchise payments required to be made as a condition to the con- d tinued use or possession of property; (second) all losses actually sus- ugf2Z$°’ °°’°°i°` tained within the year in business conducted by it within the United States or its Territories, Alaska, or the District of Columbia not compensated b insurance or otherwise includirag a reasonable allowance for dbpreciation of property, if anv, an in the case of msurance companies the sums other than dividends, paid within the