Page:United States Statutes at Large Volume 76.djvu/1071

 76 STAT.]

P U B U C LAW 8 7 - 8 3 4 - O C T. 16, 1962

1023

"SEC. %2. ELECTION BY INDIVIDUALS TO BE SUBJECT TO TAX AT CORPORATE RATES. " (a) GENERAL RULE.—Under regulations prescribed by the Secretary or his delegate, in the case of a United States shareholder who is an individual and who elects to have the provisions of this section apply for the taxable year— "(1) the tax imposed under this chapter on amounts which are included in his gross income under section 951(a) shall (in lieu Ante, p. looe. of the tax determined under section 1) be an amount equal to the tax which would be imposed under section 11 if such amounts were received by a domestic corporation, and "(2) for purposes of applying the provisions of section 960 Ante, p. 1020. (relating to foreign tax credit) such amounts shall be treated as if they were received by a domestic corporation. "(b) ELECTION.—An election to have the provisions of this section apply for any taxable year shall be made by a United States shareholder at such time and in such manner as the Secretary or his delegate shall prescribe by regulations. An election made for any taxable year may not be revoked except with the consent of the Secretary or his delegate. "(c) SURTAX EXEMPTION.—For purposes of applying subsection (a)(1), the surtax exemption provided by section 11(c) shall not esAstat. 11. exceed, in the case of any United States shareholder, an amount which ^^ ^^^ ^^• bears the same ratio to $25,000 as the amounts included in his gross income under section 951(a) for the taxable year bears to his pro rata share of the earnings and profits for the taxable year of all controlled foreign corporations with respect to which such United States shareholder includes any amount in gross income under section 951(a). "(d)

SPJ:CIAL RULE FOR ACTUAL DISTRIBUTIONSS,—The earnings and

profits of a foreign corporation attributable to amounts which were included in the gross income of a United States shareholder under section 951(a) and with respect to which an election under this section applied shall, when such earnings and profits are distributed, notwithstanding the provisions of section 959(a)(1), be included in gross income to the extent that such earnings and profits so distributed exceed the amount of tax paid under this chapter on the amounts to which such election applied. "SEC. 963. RECEIPT OF MINIMUM DISTRIBUTIONS BY DOMESTIC CORPORATIONS. " (a) GENERAL RULE. — I n the case of a United States shareholder which is a domestic corporation and which consents to all the regulations prescribed by the Secretary or his delegate under this section prior to the last day prescribed by law for filing its return of the tax imposed by this chapter for the taxable year, no amount shall be included in gross income under section 951(a)(1)(A)(i) for the taxable year with respect to the subpart F income of a controlled foreign corporation, if— "(1) in the case of a controlled foreign corporation described in subsection (c)(1), the United States shareholder receives a minimum distribution of the earnings and profits for the taxable year of such controlled foreign corporation; "(2) in the case of controlled foreign corporations described in subsection (c)(2), the United States shareholder receives a minimum distribution with respect to the-consolidated earnings and profits for the taxable year of all such controlled foreign corporations; or "(3) in the case of controlled foreign corporations described in subsection (c)(3), the United States shareholder receives a min-

Ante, p. 1019.

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