Page:United States Statutes at Large Volume 47 Part 1.djvu/256

 232 72d CONGRESS. SESS. I. CII. 209 . JUNE 6, 1932 . INCOME TAX (h) AFFILIATION .- A corporation entitled to the benefits of this Affiliation. section shall not be deemed to be affiliated with any other corpora- Applicability to cor- y por atio ns. tion within the meaning of section 141. Ante, p. 213. cit izen s of Posses- SEC. 252. CITIZENS OF POSSESSIONS OF UNITED STATES. stops of United States. Taxation of non- (a) Any individual who is a citizen of any possession of the resident of United United States (but not otherwise a citizen of the United States) States if citizen of pos- ses sion. 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 com- puted and paid in the -same manner and subject to the same conditions as in the case of other persons who are taxable only as to income derived from such sources. Virgin islands. (b) Nothing in this section shall be construed to alter or amend Payment of taxes in, not affected 0 the provisions of the Act entitled "An Act making appropriations Vol.42,p.123. for the naval service for the fiscal year ending June 30, 1922, and for other purposes," approved July 12, 1921, relating to the imposi- tion of income taxes in the Virgin Islands of the United States. China Trade Act Corporations. Credits against net income. Computation and proportion of. Ante, p. 177. Ante, p . 20& Proviso. Limitation. Ante, p. 177. Spec ial divi dend s. Conditions. Credit subject to spe- cial dividend to resi- dents of China, etc. Additional to all other payments. Proportionate distri- bution to stock owned. Defi niti on of stock owne rshi p. Supplement K-China Trade Act Corporations SEC. 261. CREDIT AGAINST NET INCOME. (a) ALLOWANCE OF CREDIT .- Fo r the purpose on ly of the tax imposed by section 13 there shall be allowed, in the case of a corpora- tion organized under the China Trade Act, 1922, in addition to the credit 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 of 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 : Pro- vided, 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 filing the return, the corporation has distributed 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 individual citi- zens of the United States or China, and owned shares 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 (3) That such distribution has been made to or for the benefit of such persons in proportion to the par value of the shares of stock of the corporation owned by each ; except that if the cor- poration has-more than one class of stock, the certificates shall contain a statement that the articles of incorporation provide a method for the apportionment of su ch special dividend among such persons, and that the amount certified has been distributed in accordance with the method so provided. (c) OWNERSHIP OF STOCK.-For the purposes of this section shares of stock of a corporation shall be considered to be owned by the