Page:United States Statutes at Large Volume 45 Part 1.djvu/898

 SEVENTIETH CONGRESS. SEss. I. CH. 852 . 1928 . 847 Supplement H-Nonresident Alien Individuals INCOME TAX Nonresident alien in- dividuals. SEC. 211. NORMAL TAX. Normal tax. (a) General rule.-In the case of a nonresident alien individual Ante, p. 795. who is no t a re sident of a contig uous c ountry, the n ormal tax sh all be 5 per centum of the amount of the net income in excess of the credits against net income allowed to such individual. (b) Aliens resident in contiguous countries .-In the case of an Residents in contig- n alien individual resident in a contiguous country, the normal tax uous countries. shall be an amount equal to the sum of the following : 11 .per centum of the amount by which the art of the net Co mpen satio n f or (1) /L 1> pers onal service s in income at tributabl e to wage s, salari es, profe ssional f ees, or o ther United States. amounts recei ved as compe nsatio n for persona l serv ices a ctuall y performed in the United States, exceeds the personal exemption and credit for dependents ; but the amount taxable at such 11/2 Maximum. per centum rate shall not exceed $4,000 ; (2) 3 per centum of the amount by which such part of the net ceedingAdditional, if ex- (2) eding family cred its income exceeds the sum of (A) the personal exemption and and $4,000. credit for dependents, plus (B) $4,000 ; but the amount taxable at such 3 per centum rate shall not exceed $4,000 ; and (3) 5 per centum of the amount of the net income in excess of If in excess thereof. the s um of (A) the amoun t tax ed u nder parag raphs (1) and (2) of this subsection plus (B) the total credits against net income allowed to such individual. In lieu of other tax. (c) In lieu of normal tax under section 11 .-The tax imposed Ante, p. 795. by this section shall be in lieu of the normal tax imposed by section 11. SEC. 212 . GROSS INCOME. Gross income. Inclu des only Uni ted (a) General rule .-In the case of a nonresident alien individual States sources. gross income includes only the gross income from sources within the United States. Earnin gs fr om fo r- (b) Ships under foreign flag .-The income of a nonresident alien eign ships, etc ., exempt individual which consists exclusively of earnings derived from from taxation . the operation of a ship or ships documented under the laws of a foreign country which grants an equivalent exemption to citizens of the United States and to corporations organized in the United States, shall not be included in gross income and shall be exempt from ta xation un der this title. SEC. 213 . DEDUCTIONS. De ductions. (a) General rule .-In the case of a nonresident alien individual nectd A llowe d with ly income the ded uction s shal l be a llowed only if and to the exten t that they sources. from States are connected with income from sources within the United States ; and the proper apportionment and allocation of the deductions with respect to sources of income within and without the United States shall be determined as provided in section 119, under rules and regulations prescribed by the Commissioner with the approval of the Sec retary. (b) Losses ; Los ses. (1) The deduction for losses not connected with the trade or Not c onne cted with trade or business. business if incurred in transactions entered into for profit, allowed by section 23(e) (2) shall be allowed whether or not conn ecte d wit h inc ome from sourc es wi thin the Unite d St ates, but only if the profit, if such transaction had resulted in a profit, would be taxable under this title. (2) The deduction for losses of property not connected with conectenetedy losses not d with busi- the trade or business if arising from certain casualties or theft, ness. allowed by section 23(e) (3), shall be allowed whether or not

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