Page:United States Statutes at Large Volume 68A.djvu/323

 CH. 1—NORMAL TAXES AND SURTAXES

283

(4) FOREIGN TAX CREDIT.—Foreign corporations shall not be allowed the credits against the tax for taxes of foreign countries and possessions of the United States allowed by section 901. (d) R E T U R N S OF T A X BY AGENT.—If any foreign corporation has no office or place of business in the United States b u t has an agent in the United States, the return required under section 6012 shall be made by the agent. . SEC. 883. EXCLUSIONS FROM GROSS INCOME. The following items shall not be included in gross income of a foreign corporation, and shall be exempt from taxation under this subtitle: (1) S H I P S UNDER FOREIGN FLAG.—Earnings derived from the operation of a ship or ships documented under the laws of a foreign country which grants an equivalent exemption to citizens of the United States and to corporations organized in the United States. (2) AIRCRAFT OF FOREIGN REGISTRY.—Earnings derived from the operation of aircraft registered under the laws of a foreign country which grants an equivalent exemption to citizens of the United States and to corporations organized in the United States. SEC. 884. CROSS REFERENCES. (1) For withholding at source of tax on income of foreign corpora^fy tions, see section 1442. ^,j,, (2) For rules applicable in determining whether any foreign corporaP tion is engaged in trade or business within the United States, see ''' section 871(c). -* (3) For special provisions relating to foreign insurance companies, u., see subchapter L (sec. 801 and following). (4) For special provisions relating to unrelated business income of foreign educational, charitable, and certain other exempt organizations, see section 512(a). II-...

Subpart C—Miscellaneous Provisions 85' -^^' &!•• ge

Sec. 891. Doubling of rates of tax on citizens and corporations of certain foreign countries. Sec. 892, Income of foreign governments and of international organizations. Sec. 893. Compensation of employees of foreign governments or international organizations. Sec. 894. Income exempt under treaty.

SEC. 891. DOUBLING OF RATES OF TAX ON CITIZENS AND CORPORATIONS OF CERTAIN FOREIGN COUNTRIES. Whenever the President finds that, under the laws of any foreign country, citizens or corporations of the United States are being subjected to discriminatory or extraterritorial taxes, the President shall so proclaim and the rates of tax imposed by sections 1,3, 11, 802, 821, 831, 852, 871, and 881 shall, for the taxable year during which such proclamation is made and for each taxable year thereafter, be doubled in the case of each citizen and corporation of such foreign country; but the tax at such doubled rate shall be considered as imposed by such sections as the case may be. In no case shall this section operate to increase the taxes imposed by such sections (computed without regard to this section) to an amount in excess of 80 percent of the taxable income of the taxpayer (computed without regard to the deductions allowable under section 151 and under part § 891

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