Page:United States Statutes at Large Volume 52.djvu/568

 52 STAT.] 75TH CONG. , 3D SESS.-CH. 289 -MAY 28, 1938 (c) DEDUCTIONS.-In addition to the deductions allowed to corpo- rations by section 23 the following deductions to insurance companies shall also be allowed, unless otherwise allowed- (1) MUTUAL INSURANCE COMPANIES OTHER THAN LIFE INSUR- ANCE.-In the case of mutual insurance companies other than life insurance companies- (A) the net addition required by law to be made within the taxable year to reserve funds (including in the case of assessment insurance companies the actual deposit of sums with State or Territorial officers pursuant to law as addi- tions to guarantee or reserve funds); and (B) the sums other than dividends paid within the taxable year on policy and annuity contracts. (2) MUTUAL MARINE INSURANCE COMPANIES.--In the case of mutual marine insurance companies, in addition to the deductions allowed in paragraph (1) of this subsection, unless otherwise allowed, amounts repaid to policyholders on account of premiums previously paid by them, and interest paid upon such amounts between the ascertainment and the payment thereof; (3) MUTUAL INSURANCE COMPANIES OTHER THAN LIFE AND MARINE.- In the case of mutual insurance companies (including interinsurers and reciprocal underwriters, but not including mutual life or mutual marine insurance companies) requiring their members to make premium deposits to provide for losses and expenses, the amount of premium deposits returned to their policyholders and the amount of premium deposits retained for the payment of losses, expenses, and reinsurance reserves. Supplement H-Nonresident Alien Individuals SEC. 211. TAX ON NONRESIDENT ALIEN INDIVIDUALS. (a) No UNITED STATES BUSINESS OR OFFICE. - (1) GENERAL RULE. -There shall be levied, collected, and paid for each taxable year, in lieu of the tax imposed by sections 11 and 12, upon the amount received, by every nonresident alien individual not engaged in trade or business within the United States and not having an office or place of business therein, from sources within the United States as interest (except interest on deposits with persons carrying on the banking business), dividends, rents, salaries, wages, premiums, annuities, compensa- tions, remunerations, emoluments, or other fixed or determinable annual or periodical gains, profits, and income, a tax of 10 per centum of such amount, except that such rate shall be reduced, in the case of a resident of a contiguous country, to such rate (not less than 5 per centum) as may be provided by treaty with such country. For inclusion in computation of tax of amount specified in shareholder's consent, see section 28. (2) AGGREGATE MORE THAN $21,600.- The tax imposed by paragraph (1) shall not apply to any individual if the aggregate amount received during the taxable year from the sources therein specified is more than $21,600. (3) RESIDENTS OF CONTIGUOUS COUNTRIES.-Despite the pro- visions of paragraph (2), the provisions of paragraph (1) shall apply to a resident of a contiguous country so long as there is in effect a treaty with such country (ratified prior to August 26, 1937) under which the rate of tax under section 211 (a) of the Revenue Act of 1936, prior to its amendment by section 501 (a) of the Revenue Act of 1937, was reduced. 527 Deductions. Ante, p. 460. Mutual, other than life insurance com- panies. Mutual marine in- surance companies. Mutual, other than life and marine. Nonresident alien individuals. Tax on. No United States business or office. General rule. Ante, pp. 452-453. Residents of contig- uous countries. Ante, p. 470. Aggregate more than $21,600. Residents of contig- uous countries. 4 Stat. 1714; 50Stat. 830.

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