Page:United States Statutes at Large Volume 56 Part 1.djvu/900

 PUBLIC LAWS-CH. 619-OCT. 21, 1942 Dividends, paid or declared. 53 Stat. 72. 26U. S.C.§204. 53 Stat. 18 . 26U.S.. § 26. Ante, pp. 806, 807, 825, 828 -830 . 53Stat. 7. 26U. .C.. 13(a). Ante, p. 805. Post, p. 955. 53 Stat. 33 . 26U. S.C. §101(11). 53 Stat. 74 . 26 U. s.. . 2I7. 63 Stat. 7, 8. 26U.8.C.§13; 8upp. I, §§13, 14 (b). Ante, p. 805. Ante, p. 806 53 Stat. 10. 26 U. ... 22 (b) (4), .81 A*6, p. 81L and (2) by striking out the period at the end thereof and insert- ing a semicolon and the following new paragraph: "(11) Dividends and similar distributions paid or declared to policyholders in their capacity as such. The term 'paid or declared' shall be construed according to the method of account- ing regularly employed in keeping the books of the insurance company."; (d) Section 204 is amended by adding at the end thereof the fol- lowing new subsection: "(f) CREDITS UNDER SECTION 26.- For the purposes of this section, in computing normal tax net income and corporation surtax net income, the credits provided in section 26 shall be allowed in the manner and to the extent provided in sections 13 (a) and 15 (a)." (e) CRoss REFERENCE. -For stamp tax on policies written by foreign insurers, see section 502 of this Act. SEC. 165. MUTUAL INSURANCE COMPANIES OTHER THAN LIFE OR MARINE. (a) ExEMPT CoMPANIES. -Section 101 (11) is amended to read as follows: "(11) Mutual insurance companies or associations other than life or marine (including interinsurers and reciprocal under- writers) if the gross amount received during the taxable year from interest, dividends, rents, and premiums (including deposits and assessments) does not exceed $75,000;". (b) TAXABLE CoMPANIEs. - Section 207 (relating to taxation of mutual insurance companies other than life) is amended to read as follows: "SEC. 207. MUTUAL INSURANCE COMPANIES OTHER THAN LIFE OR MARINE. "(a) IMPOSITION OF TAx.- There shall be levied, collected, and paid for each taxable year upon the income of every mutual insurance company (other than a life or a marine insurance company and other than an interinsurer or reciprocal underwriter) a tax computed under paragraph (1) or paragraph (2) whichever is the greater and upon the income of every mutual insurance company (other than a life or a marine insurance company) which is an interinsurer or reciprocal underwriter, a tax computed under paragraph (3): "(1) If the corporation surtax net income is over $3,000 a tax computed as follows: "(A) Normal Tax. - A normal tax on the normal-tax net income, computed at the rates provided in section 13 or sec- tion 14 (b), or 30 per centum of the amount by which the normal-tax net income exceeds $3,000, whichever is the lesser; plus "(B) Surtax.-A surtax on the corporation surtax net income, computed at the rates provided in section 15 (b), or 20 per centum of the amount by which the corporation surtax net income exceeds $3,000, whichever is the lesser. "(2) If for the taxable year the gross amount of income from interest, dividends, rents, and net premiums, minus dividends to policy holders, minus the interest which under section 22 (b) (4) is excluded from gross income, exceeds $75,000, a tax equal to the excess of- "(A) 1 per centum of the amounts so computed, or 2 per centum of the excess of the amount so computed over $75,000, whichever is the lesser, over [56 STAT.

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