Page:United States Statutes at Large Volume 76.djvu/1068

 1020

Ante. p. 1006.

Infra.

PUBLIC LAW 87-834-OCT. 16, 1962

[76

STAT.

would have been included except for subsection (a)(2) of this section), "(2) then to earnings and profits attributable to amounts included in gross income under section 9 6 1 (a)(1)(A) (but reduced by amounts not included under section 9 5 1 (a)(1)(B) because of the exclusion in subsection (a)(2) of this section), and "(3) then to other earnings and profits. " (d) DISTRIBUTIONS EXCLUDED FROM GROSS INCOME N O T To B E TREATED AS DIVIDENDS.—Exccpt as provided in section 960(a)(3), any

distribution excluded from gross income under subsection (a) shall be treated, for purposes of this chapter, as a distribution which is not a dividend. "SEC. 960. SPECIAL RULES FOR FOREIGN TAX CREDIT. "(a)

Ante, p. 1000.

TAXES PAID BY A FOREIGN CORPORATION.— "(1) GENERAL RULE.—For purposes of subpart

A of this part, if there is included, under section 951(a), in the gross income of a domestic corporation any amount attributable to earnings and profits— " (A) of a foreign corporation at least 10 percent of the voting stock of which is owned by such domestic corporation, or " (B) of a foreign corporation at least 50 percent of the voting stock of which is owned by a foreign corporation at least 10 percent of the voting stock of which is in turn owned by such domestic corporation, then, under regulations prescribed by the Secretary or his delegate, such domestic corporation shall be deemed to have paid the same proportion of the total income, war profits, and excess profits taxes paid (or deemed paid) by such foreign corporation to a foreign country or possession of the United States for the taxable year on or with respect to the earnings and profits of such foreign corporation which the amount of earnings and profits of such foreign corporation so included in gross income of the domestic corporation bears to— " (C) if the foreign corporation at least 10 percent of the voting stock of which is owned by such domestic corporation referred to in subparagraph (A) or (B) is not a less developed country corporation (as defined in section 902(d)) for such taxable year, the entire amount of the earnings and profits of such foreign corporation for such taxable year, or " (D) if the foreign corporation at least 10 percent of the voting stock of which is owned by such domestic corporation referred to in subparagraph (A) or (B) is a less developed country corporation (as defined in section 902(d)) for such taxable year, the sum of the entire amount of the earnings and profits of such foreign corporation for such taxable year and the total income, war profits, and excess profits taxes paid by such foreign corporation to foreign countries or possessions of the United States for such taxable year. "(2)

Ante, p. 1019.

TAXES PREVIOUSLY DEEMED PAID BY DOMESTIC CORPORA-

TioN.-If a domestic corporation receives a distribution from a foreign corporation, any portion of which is excluded from gross iucome under section 959, the income, war profits, and excess profits taxes paid or deemed paid by such foreign corporation to any foreign country or to any possession of the United States in connection with the earnings and profits of such foreign corporation from which such distribution is made shall not be taken into account for purposes of section 902, to the extent such taxes

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