Page:United States Statutes at Large Volume 89.djvu/119

 PUBLIC LAW 94-12—MAR. 29, 1975 (5)

R E P E A L OF SECTION 955.—Section 955 ( r e l a t i n g to with-

89 STAT. 59 26 USC 955.

d r a w a l of previously excluded subpart F income from qualified investment) is hereby repealed. (6)

L E S S DEVELOPED COUNTRY CORPORATION DEFINED.—Subsec-

tion (d) of section 902 is amended to read as follows: "(d)

26 USC 902.

L E S S DEVELOPED COUNTRY CORPORATION D E F I N E D. — For p u r -

poses of this section, the term 'less developed country corporation' means— " (1) a foreign corporation which, for its taxable year, is a less developed country corporation within the meaning of paragraph (3) or (4), and " (2) a foreign corporation which owns 10 percent or more of the total combined voting power of all classes of stock entitled to vote of a foreign corporation which is a less developed country corporation within the meaning of paragraph (3), and— " (A) 80 percent or more of the gross income of which for its taxable year meets the requirement of paragraph (3)(A), and " (B) 80 percent or more in value of the assets of which on each day of such year consists of property described in paragraph (3)(B). A foreign corporation which is a less developed country corporation for its first taxable year beginning after December 31, 1962, shall, for purposes of this section, be treated as having been a less developed country corporation for each of its taxable years beginning before January 1, 1963. " (3) The term 'less developed country corporation' means a foreign corporation which during the taxable year is engaged in the active conduct of one or more trades or businesses and— " (A) 80 percent or more of the gross income of which for the taxable year is derived from sources within less developed countries; and " (B) 80 percent or more in value of the assets of which on each day of the taxable year consists of— " (i) property used in such trades or businesses and located in less developed countries, " ( i i) money, and deposits with persons carrying on the banking business, " (iii) stock, and obligations which, at the time of their acquisition, have a m a t u r i t y of one year or more, of any other less develoj^ed country corporation, " ( i v) an obligation of a less developed country, " (v) an investment which is required because of restrictions imposed by a less developed country, and " ( v i) property describal in section 956(b)(2). 26 USC 956. For purposes of subparagraph (A), the determination as to whether income is derived from sources within less developed countries shall be made under regulations prescribed by the Secretary or his delegate. " (4) The term 'less developed country corporation' also means a foreign corporation— " (A) 80 percent or more of the gross income of which for the taxable year consists of— " (i) gross income derived from, or in connection with, the using ( o r h i r i n g 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

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