Page:United States Statutes at Large Volume 45 Part 1.djvu/902

 SEVENTIETH CONGRESS. Suss. I. CH. 852. 1928. allowed to them in this title only by filing or causing to be filed with the co llector a true and accurate return o f their t otal inco me receiv ed from all sources in the United States, in the manner prescribed in this title ; including therein all the information which the Commis- sioner may deem necessary for the calculation of such deductions and c redits. (g) Credits against tax .-Persons entitled to the benefits of this section shall not be allowed the credits against the tax for taxes of foreign countries and possessions of the United States allowed by section 131. (h) Affiliation .-A corporation entitled to the benefits of this secti on shall not be de emed to b e affili ated with any othe r corpora tion within the meaning of section 141 or 142. SEC. 252 . CITIZENS OF POSSESSIONS OF UNITED STA TES. (a) Any individual who is a citizen of any possession of the United States (but not otherwise a citizen of the United States) and who is not a resident of the United States, shall be subject to taxation under this title only as to income derived from sources within the United States, and in such case the tax shall be computed and paid in th e same manne r and subjec t to th e same condi tions as in the case of other persons who are taxable only as to income derived from such sources. (b) Nothing in this section shall be construed to alter or amend the prov isio ns of the Act entit led " An A ct ma king appro pria tions for the naval service for the fiscal year ending June 30, 1922, and for other purpo ses," approv ed Jul y 12, 1921, r elatin g to t he imp osi- tion of income taxes in the Virgin Islands of the United States. Supplement K-China Trade Act Corporations SEC. 261 . CREDIT AGAINST NET INCOME. (a) Allowance of credit .-For the purpose only of the tax imposed by section 13 there shall be allowed, in the case of a cor- poration organized under the China Trade Act, 1922, in addition to the credits provided in section 26, a credit against the net income of an amount equal to the proportion of the net income derived from sources within China (determined in a similar manner to that pro- vided in section 119) which the par value of the shares of stock of the corporation owned on the last day of the taxable year by (1) persons resident in China, the United States or possessions of the United States, and (2) individual citizens o>t the United States or China wherever resident, bears to the par value of the whole number of shares of stock of the corporation outstanding on such date Provided, That in no case shall the' amount by which the tax imposed by section 13 is diminished by reason of such credit exceed the amount of the special dividend certified under subsection (b) of this section. (b) Special dividend .-Such credit shall not be allowed unless the Secretary of Commerce has certified to the Commissioner- (1) The amount which, during the year ending on the date fixed by law for f iling the return, the corpo ration ha s distrib uted as a special dividend to or for the benefit of such persons as on the last day of the taxable year were resident in China, the United States, or possessions of the United States, or were indi- vidual citiz ens of the U nited States or Chi na, an d owne d shar es of stock of the corporation ; (2) That such special dividend was in addition to all other amounts, payable or to be payable to such persons or for their benefit, by reason of their interest in the corporation ; and 851 INCO ME TAX Credits against tax. No allow ance for, of foreign g overnments. Ante,p. 829. Affiliation. Not applicable to cor- porations hereof. Ante, pp. 831, 832. Citizens of posses- sions of United States. Nonre sidents of United States taxable only on income from United States sources. Virgi n Islands. Payment of taxes in, not aff ected. Vol.42,p. 123. China Trade Act cor- porations. Credit against net in- come. Al lowa nce o nly for prop ortion of in come from China sources bears to shares of resi- dents in China. Ante, p. 803. Ante, p. 826. Precise. Li mita tion. Ante, p. 797. Condition. Credit subject to spe- cial dividend to resi- dents of China, etc. Additional to all other payments.

�