Page:United States Statutes at Large Volume 49 Part 1.djvu/953

 9. 08 74TH CONGRESS. SESS. I. CH. 767. AUGUST 27, 1935 . [CHAPTER 767 .] Aug ust 27, 1935. AN ACT [H. R. 7998 .1 To exempt from taxation official compensation of certain foreign representatives [Public, No. 374.] and to provide for the deductibility from income of certain dividends on preferred stock owned by the United States or instrumentalities thereof. Be it enacted by the Senate and House of Representatives o f the United States of America in Congress assembled, Th at se c ti o n 1 16 of the Revenue Act of 1934 relating t o exclusions from gross income is amended by adding at the end thereof a new subsection reading as fol lows "(h) COMP ENSA TION OF EMPL OYEE S OF FORe IGN GOVE RNME NTS . - Wages, fees, or salary of an employee of a foreign government (includ- ing a consular or other officer, or a nondiplomatic representative) received as compensation for official services to such government- " 1) If such employee is not a citizen of the United States ; and " 2) If the services are of a character similar to those performed by employees of the Government of the United States in foreign countries ; and "(3) If the foreign government whose employee is claiming exemption grants an equivalent exemption to employees of the Gov- ernment of the United States performing similar services in such foreign country. " The Secretary of State shall certify to the Secretary of the Treasury the names of the for eign countries which grant an equivalent exemp- tion to the employees of the Government of the United States per- forming services in such foreign countries, and the character of the services performed by employees of the Government of the United States in foreign countries ." SEC. 2. The provisions of sectio n 1 shall be retroac tively app lied in computing income under the provisions of the Revenue Act of 1934 and prior revenue Acts, or any of such Acts as amended, subject to the statutory period of limitations properly applicable to such Acts. SeC. 3 . Title I of the Revenue Act of 1934, relating to income tax, is amended by adding after section 120 a new' section reading as follows " SEC . 121 . DEDUCTION OF DIVIDENDS PAID ON CERTAIN PREFERRED STOCK OF CERTAIN CORPORAtiONS . -In compu ting the n et in come, for an y tax able year begin ning after Dece mber 31, 1934, of any national banking association, or of any bank or trust company organized under the laws of any State, Territory, possession of the United States, or the Canal Zone, or of any other banking corporation engaged in the business of industrial banking and under the supervisi on of a State banking department or of the Comptroller of the Curren cy, or of any incorporated domestic insurance company, there shall be allowed as a deduction from gross income, in addition to deductions otherwise provided for in this title, any dividend (not including any distribu- tion in liquidation) paid, within such taxable year, to the United States or to any instrumentality thereof exempt from F ederal income taxes, on the preferred stock of the corporation owned by the United States or such instrumentality ." Approved, August 27, 1935 . Revenue Act of 1934, amendment . Vol. 48, p. 712 . Exc lusi ons fro m gr oss income. Comp ensati on of em- plo yees of foreig n gov- ernments . Conditions. Certification of names of foreign gov- ernments which grant equ ivalent exemption . Retroactive applica- tion . Vol . 48, p. 718. Deduction of divi- dends paid on certain pref erre d s tock of cer- tain co rporati ons.