Page:United States Statutes at Large Volume 76.djvu/1063

 76 STAT. ]

PUBLIC LAW 87-834-OCT. 16, 1962

1015

" (A) 80 percent or more of the gross income of which for the taxable year consists o f ^ " (i) gross income derived from, or in connection with, the using (or hiring or leasing for use) in foreign commerce of aircraft or vessels registered under the laws of a less developed country, or from, or in connection with, the performance of services directly related to use of such aircraft or vessels, or from the sale or exchange of such aircraft or vessels, and "(ii) dividends and interest received from foreign corporations which are less developed country corporations within the meaning of this paragraph and 10 percent or %,.^-i more of the total combined voting power of all classes of stock of which are owned by the foreign corporation, and gain from the sale or exchange of stock or obligations of foreign corporations which are such less developed country corporations, and " (B) 80 percent or more of the assets of which on each day of the taxable year consists of (i) assets used, or held for use, for or in connection with the production of income described in subparagraph (A), and (ii) property described in section 956(b)(2). Post, P. loie. "(3) LESS DEVELOPED COUNTRY DEFINED.—For purposes of this subpart, the term 'less developed country' means (in respect of any foreign corporation) any foreign country (other than an area within the Sino-Soviet bloc) or any possession of the United States with respect to which, on the first day of the taxable year, there is in effect an Executive order by the President of the United States designating such country or possession as an economically less developed country for purposes of this subpart. For purposes of the preceding sentence, an overseas territory, department, province, or possession may be treated as a separate country. No designation shall be made under this paragraph with respect to— Australia Liechtenstein Austria Luxembourg Belgium Monaco ifi Canada Netherlands Denmark New Zealand j.r. France Norway Germany (Federal Republic) Union of South Africa Hong Kong San Marino Italy Sweden Japan Switzerland United Kingdom After the President has designated any foreign country or any possession of the United States as an economically less developed country for purposes of this subpart, he shall not terminate such designation (either by issuing an Executive order for that purpose or by issuing an Executive order under the first sentence of this paragraph which has the effect of terminating such designation) unless, at least 30 days prior to such termination, he has notified the Senate and the House of Representatives of his intention to terminate such designation, "SEC. 956. INVESTMENT OF EARNINGS IN UNITED STATES PROPERTY. " (a) GENERAL RULES.—For purposes of this subpart— " (1) AMOUNT OF INVESTMENT.—The amount of earnings of a

controlled foreign corporation invested in United States property at the close of any taxable year is the aggregate amount of such property held, directly or indirectly, by the controlled foreign

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