Page:United States Statutes at Large Volume 68 Part 1.djvu/1126

 1094

68A Stat. 415.

68A Stat, 416.

PUBLIC LAW 761-SEPT. 1, 1954

[68 S T A T.

"(5) in the case of any taxable year beginning after December 31, 1974, the tax shall be equal to 6 percent of the amount of the self-employment income for such taxable year." (jj) Section 3101 of the Internal Revenue Code of 1954 is amended by striking out paragraph (4) and inserting in lieu thereof the following: " (4) with respect to wages received during the calendar years 1970 to 1974, both inclusive, the rate shall be 3l^ percent; " (5) with respect to wages received after December 31, 1974, the rate shall be 4 percent." (g) Section 3111 of the Internal Revenue Code of 1954 is amended by striking out paragraph (4) and inserting in lieu thereof the following: "(4) with respect to wages paid during the calendar years 1970 to 1974, both inclusive, the rate shall be 3i/2 percent; "(5) with respect to wages paid after December 31, 1974, the rate shall be 4 percent." FOREIGN SUBSIDIARIES OF DOMESTICORPORATION

68A Stat. 417.

SEC. 209. Sectjou 3121 of the Internal Revenue Code of 1954 is amended by adding at the end thereof the following new subsection: "(1) AGREEMENTS ENTERED INTO BY DOMESTICORPORATIONS W I T H RESPECT TO FOREIGN SUBSIDIARIES.— "(1) AGREEMENT WITH RESPECT TO CERTAIN EMPLOYEES OF FOREIGN SUBSIDIARIES.—The Secretary or his delegate shall, at the

42 USC 401-421. Post, p. 1096.

supra.

request of any domestic corporation, enter into an agreement (in such form and manner as may be prescribed by the Secretary or his delegate) with any such corporation which desires to have the iiisurance system established by title II of the Social Security Act extended to service performed outside the United States in the employ of any one or more of its foreign subsidiaries ^^g (Jefined in paragraph (8)) by all employees who are citizens of the United States, except that the agreement shall not be applicable to any service performed by, or remuneration paid to, an employee if such service or remuneration would be excluded from the term 'employment' or 'wages', as defined in this section, had the service been performed in the United States. Such agreement may be amended at any time so as to be made applicable, in the same manner and under the same conditions, with respect to any other foreign subsidiary of such domestic corporation. Such agreement shall be applicable with respect to citizens of the United States who, on or after the effective date of the agreement, are employees of and perform services outside the United States for any foreign subsidiary specified in the agreement. Such agreement shall provide— " (A) that the domestic corporation shall pay to the Secretary or his delegate, at such time or times as the Secretary or his delegate may by regulations prescribe, amounts equivalent to the sum of the taxes which would be imposed by sections 3101 and 3111 (including amounts equivalent to the interest, additions to the taxes, additional amounts, and penalties which would be applicable) with respect to the remuneration which would be wages if the services covered by the agreement constituted employment as defined in this section; and " (B) that the domestic corporation will comply with such regulations relating to payments and reports as the Secretary or his delegate may prescribe to carry out the purposes of this subsection.

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