Page:United States Statutes at Large Volume 56 Part 1.djvu/836

 PUBLIC LAWS-CH. 619-OCT. 21, 1942 53 Stat. 76 . 26 U. S. C., Supp. I, § 211 (c). Post,p. 861. 63 Stat. 78 . 26U.S.C.§231 (a); Supp. I, § 231 (a). Post, p. 861. 53 Stat. 60, 61, 62. 26 U.S .C. 143(a); Supp. I, §i 143 (a), (b), 144. Post, pp. 80,861. 53 Stat. 61. 26 U. 8. C., Supp. I, 143 (b). Post, p. 861. Post, p. 860. Annuities, etc. 53 Stat. 10 . 26U.. C. 22(b) (2). Post, pp. 818, 866. (c) TAX WHERE GROSS INCOME OF MORE THAN $15,400. -Section 211 (c) (relating to tax on certain nonresident alien individuals) is amended by striking out "$23,000" wherever occurring therein and inserting in lieu thereof "$15,400"; and by striking out "271/2 per centum" and inserting in lieu thereof "30 per centum". In the appli- cation of the amendments made by this subsection, the rate shall be 271/2 per centum with respect to the period ending with the ninth day after the date of the enactment of this Act and shall be 30 per centum with respect to the period after such day. SEC. 107. TAX ON FOREIGN CORPORATIONS. Section 231 (a) (relating to tax on nonresident foreign corpora- tions) is amended by striking out "271/2 per centum" and inserting in lieu thereof "30 per centum". The amendments made by this section shall apply with respect to amounts received after the ninth day after the date of the enactment of this Act regardless of whether the taxable year of the recipient begins before January 1, 1942, or after December 31, 1941. SEC. 108. WITHHOLDING OF TAX AT SOURCE. (a) Sections 143 (a) and (b) and 144 are amended by striking out "27Y2 per centum" wherever occurring therein and inserting in lieu thereof "30 per centum". (b) LIMITATION ON RAT OF WITHHOLDING IN CERTAr CART SE. - Section 143 (b) is amended by inserting before the period at the end of the first sentence the following: ": Provided further, That the deduction and withholding in the case of interest on bonds, mort- gages, or deeds of trust or other similar obligations of a corporation, within the provisions of subsection (a) (1) of this section were it not for the fact that the maturity date of such obligations has been extended on or after January 1, 1934, and the liability assumed by the debtor exceeds 271/2 per centum of the interest, shall not exceed the rate of 271/p per centqm per annum" (c) Subsection (a) shall apply only with respect to the period beginning with the tenth day after the date of the enactment of this Act. SEC. 109. TREATY OBLIGATIONS. No amendment made by this title shall apply in any case where its application would be contrary to any treaty obligation of the United States. SEC. 110. TRANSFERS OF LIFE INSURANCE CONTRACTS, ETC. (a) PROCEEDS EXEMPT TO TRANSFEREE. -Section 22 (b) (2) (relat- ing to annuities, etc.) is amended by inserting a period and the following new sentence before the semicolon at the end thereof: "The preceding sentence shall not apply in the case of such a transfer if such contract or interest therein has a basis for determining gain or loss in the hands of a transferee determined in whole or in part by reference to such basis of such contract or interest therein in the hands of the transferor". (b) TAXABLE YEARS TO WHICH AmMENDMENT APPLICABLE.- The amendment made by this section shall be applicable with respect to taxable years beginning after December 31, 1940. 808 [56 STAT,

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