Page:United States Statutes at Large Volume 49 Part 1.djvu/1064

 74T H CONGRESS. SESS. I. CH. 829. AU GUST 30, 1935 . 1019 SEC. 106. EXC ESS- PROF ITS TAX Excess-pro its tax. (a) There is hereby imposed upon the net income of every corpora- imposition. 77 0. tion for each income-tax taxable year ending after the close of the fir st year in respe ct of wh ich it i s taxabl e under section 105, an excess-profits tax equal to the sum of the following : 6 per centum of such portion of its net income for such income-tax Computation. taxable year as is in excess of 10 per centum and not in excess of 15 per centum of the adjusted declared value 12 per centum of such portion of its net income for such income- tax taxable year as is in excess of 15 per centum of the adjusted declared value. b The ad j usted declared value shall be determined as provided De termi natio n ofa d- justed declared value. in section 105 as o f the cl ose of t he prece ding inc ome-tax taxable Post, p .1733. year (or as of the date of organization if it had no preceding income- tax taxable year). If the income-tax taxable year in respect of which the tax under this section is imposed is a period of less than 12 months, such adjusted declared value shall be reduced to an amount which bears the same ratio thereto as the number of months in the period bears to 12 months. For the purposes of this section the net income shall be the same as the net income for income tax purposes for the year in respect of which the tax under this section is imposed, except that there shall be deducted the amount of income tax imposed for such year by section 13 of the Revenue Act of 1934, Vol.4s,p . I-!" - as amended . (c) All provisions of law (including penalties) applicable in icab leious of law ap- plicable. respect of the taxes imposed by Title I of the Revenue Act of 1934, vol.4S, p.683. as amended, shall, insofar as not inconsistent with this section, be applicable in respect of the tax imposed by this section, except that the prov isions of sec tion 131 of th at title shal l not be appl icable . (d) The excess-profits tax imposed by section 702 of the Revenue Vol.48,p.?0. Act of 1934 shall not apply to any taxpayer wi th respect to any income-tax taxable year ending after June 30, 1936. SEC. 107 . TAXABLE YEARS TO WHICH APPLICABLE Taxabl e yea rs to which applicable . The amendments made by sections 101, 102 (except subsections Ante, p.1014. (f), (g), and (i) thereof), 103, and 10 1 shall apply only in the case of taxable years beginning after December 31, 1935 . SEC. 108. CREDIT ALLOWED CHINA TRADE ACT CORPORATIONS Credit al low ed China Trade Act corpora. (a) Section 261 (a) of the Revenue Act of 1934 is amended to t'Vol. 48, p. 139. read as follows : (a) ALL OWA NCE OF CREDIT .-For the purpose on ly of the taxes Allowa nce of credit . imposed by section 13 of this Act and section 106 of the Revenue Ante, .2'p s 8 49; L. S. . :pct of 1935 there shall be allowed, in the case of a corporation C.,p.546. 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 provided in section 119) which the par value of the shares of stock of the cor- poration owned on the last day of the taxable year by (1) persons resid ent in C hina, th e United States, or poss essions of the U nited 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- L ;or i3o. Limitation. vided, That in no case shall the diminution, by reason of such credit, of the tax imposed by such section 13 (computed without regard to this section) exceed the amount of the special dividend certified