Page:United States Statutes at Large Volume 48 Part 1.djvu/765

 73d C ONGRESS. SESS. II. CH. 277 . MAY 10. 1934. United States, whether derived from sources within or without the United States. (c) DEFINITION .-As used in this section the term " possession of the United States " does not include the Virgin Islands of the United States. (d) DEDucTIoNs .- (1) C itizens o f the Uni ted State s entitl ed to the benefits of this section shall have the same deductions as are allowed by Supple- ment H in the case of a nonresident alien individual. (2) Domest ic cor porati ons en titled to the benef its of this sec- tion shall have the same deductions as are allowed by Supplement I in the case of a foreign corporation. (e) CREDITS AGAINST NET INCOME .-A citizen of the United States entitled to the benefits of this section shall he allowed a personal exemption of only $1,000 and shall not be allowed the credit for dependents provided in section 25(b) (2). (f) ALLOWANCE OF DEDUCTIONS AND CREDITS .-Citizens of the United States and d omesti c corp oratio ns enti tled t o the benefi ts of this section shall receive the benefit of the deductions and credits allowed to th em in this t itle o nly by filing or ca using to be filed with the collector a true and accurate return of their total income received from all sources in the United States, in the manner pre- scribed in this title ; including therein all the information which the Commissioner may deem necessary for the calculation of such deducti ons an d cred its. (g) CREDITS AGAINST TAx. -Persons entitled to the benefits of this sect ion shall not be a llowed th e credits against the tax f or taxes of foreign countries and possessions of the United States allowed by section 131. (h) AFFILIATION .-A corporation entitled to the benefits of this section shall not be deemed to be affiliated with any other corpora- tion within the meaning of section 141. SEC. 252. CITIZENS OF POSSESSIONS OF UNITED STATES. (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 taxat ion u nder this titl e onl y as to i ncome deri ved from sourc es within the United States, and in such case the tax shall be com- puted and paid in t he sa me ma nner and subje ct to the same cond i- 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 provisions of the Act entitled "An Act making appropriations for the naval servi ce for the f iscal year en ding J une 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. Supplement K-China Trade Act Corporations SEC. 261. CRED IT 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 corpo- ration 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 provide d in s ection 119) which the pa r value of th e shar es of stock of the corporation owned on the last day of the taxable year by 739 INCOME TAX. POSSESSIONS OF UNITED STATES- Contd. Status of Virgin Is- lands. Deductions. Citize ns allowed same benefits as non- residents. Ante, p. 735. Domestic corpora- tions . Ante, p. 737 Cred its ag ain st net income. Personal exemption. Ante, p. 69.1. -Allowance of deduc- tions and credits. Filing return of toted income. Credits against tax. No allowance for, of foreign countries. Ante, p. 718. Affiliation. Ap plicab ility t o cor- porations. Ante, p. 720. Citizens of Posses- sions of United States. Taxation of. Virgin Islands. Payment of taxes in not affected. Vol. 42, p. 123. CHINA TRADE ACT C ORPO RA- TIO NS. Credit against net income. Compu tatio n and proportion. Ante, p. 693- Ante, p. 716.