shall be exempt from the tax im- shall be exempt from the tax imposed by this subchapter: posed by this subchapter: Sec. 727. (a) Corporations exempt under section 101 from the tax imposed by Chapter 1. Sec. 727. (b) Foreign personalholding companies, as defined in section 331. Sec. 727. (c) Mutual Regulated investment companies, as defined in section 361 without the application of Section 361 (b) (4). · Taxable Years Sec. 727. (a) Corporations exempt under section 101 from the tax imposed by Chapter 1. Sec. 727. (b) Foreign personalholding companies, as defined in section 331. Sec. 727. (c) Mutual investment companies, as defined in section 361. See. 727. (d) Investment Sec. 727. (d) Investment companies which under the Investment panies which under the Investment Company Act of 1940 are registered Company Act of 1940 are registered as diversified companies at all times as diversified companies at all times during the taxable year. For the purposes of this subsection, if a company is so registered before July 1, 1941, it shall be considered as so registered at all times prior to the date of such registration. Sec. 727. (e) Personal-holding companies, as defined in section 501. during the taxable year. For the purposes of this subsection, if a company is so registered before July 1, 1941, it shall be considered as so registered at all times prior to the date of such registration. Sec. 727. (e) Personal-holding companies, as defined in section 501. Sec. 727. (f) Foreign corporaSec. 727. (f) Foreign corporations not engaged in trade or busi- tions not engaged in trade or business within the United States and ness within the United States and not having an office or place of not having an office or place of business therein. business therein. Sec. 727. (g) Domestic corporations satisfying the following conditions: Sec. 727. (g) Domestic corporations satisfying the following conditions: Sec. 727. (g) (1) If 95 per Sec. 727. (g) (1) If 95 per Sec. 727. (g) (1) If 95 per centum or more of the gross income centum or more of the gross income centum or more of the gross income of such domestic corporation for of such domestic corporation for of such domestic corporation for the three-year period immediately the three-year period immediately the three-year period immediately preceding the close of the taxable preceding the close of the taxable preceding the close of the taxable year (or for such part of such year (or for such part of such year (or for such part of such period during which the corpora- period during which the corpora- period during which the corporation was in existence) was derived tion was in existence) was derived tion was in existence) was derived from sources other than sources from sources other than sources from sources other than sources within the United States; and Sec. 727. (g) (2) If 50 per centum or more of its gross income for such period or such part thereof was derived from the active conduct of a trade or business. within the United States; and Sec. 727. (g) (2) If 50 per centum or more of its gross income for such period or such part thereof was derived from the active conduct of a trade or business. within the United States; and Sec. 727. (g) (2) If 50 per centum or more of its gross income for such period or such part thereof was derived from the active conduct of a trade or business. Sec. 727. (h) Any corporation Sec. 727. (h) Any corporation Sec. 727. (h) Any corporation subject to the provisions of Title subject to the provisions of Title subject to the provisions of Title IV of the Civil Aeronautics Act of IV of the Civil Aeronautics Act of IV of the Civil Aeronautics Act of 1938, in the gross income of which 1938, in the gross income of which 1938, in the gross income of which for any taxable year beginning for any taxable year beginning for any taxable year beginning after December 31, 1939, there is after December 31, 1939, there is after December 31, 1939, there is includible compensation received includible compensation received includible compensation received from the United States for the from the United States for the from the United States for the Sec. 727. (g) (1) If 95 per centum or more of the gross income of such domestic corporation for the three-year period immediately preceding the close of the taxable year (or for such part of such period during which the corporation was in existence) was derived from sources other than sources within the United States; and Sec. 727. (g) (2) If 50 per centum or more of its gross income for such period or such part thereof was derived from the active conduct of a trade or business. Sec. 727. (h) Any corporation subject to the provisions of Title IV of the Civil Aeronautics Act of 1938, in the gross income of which for any taxable year beginning after December 31, 1939, there is includible compensation received from the United States for the Taxable Years Beginning in 1943 Taxable Years Beginning in 1942 Taxable Years Beginning in 1941 transportation of mail by aircraft transportation of mail by aircraft transportation of mail by aircraft if, after excluding from its gross if, after excluding from its gross income such compensation, its ad- income such compensation, its adjusted excess profits net income justed excess profits net income for such year is zero or less. for such year is zero or less. if, after excluding from its gross income such compensation, its adjusted excess profits net income for such year is zero or less. Sec. 727, I. R. C., supra, amended by Sec. 223 (a) and (c) and by Sec. 212 (b), R. A. of 1942, to read as above. For Sec. 727, I. R. C., before See note following Sec. 728, Sec. 728. Meaning of terms used. The terms used in this subchapter shall have the same meaning as when used in Chapter 1. Secs. 723 to 728, inclusive, Sec. 729. (a) General rule.-All provisions of law (including penalties) applicable in respect of the taxes imposed by Chapter 1, shall, insofar as not inconsistent with this subchapter, be applicable in respect of the tax imposed by this subchapter. Sec. 729. (b) Returns. Bee. 799. (b) (1) Computation of excess profits credits. Sec. 727, I. R. C., supra, amended by Sec. 223 (a), R. A. of 1942, by addition of first italicized language. Sec. 727 (c) and (d), I. R. C., amended by Sec. 223 (c), R. A. of 1942, by omission of language in stricken through type and addition of language in italics. Sec. 727 (f), I. R. C., amended by Sec. 212 (b), R. A. of 1942, by omission of language in stricken through type. Sec. 201 of said R. A. of See note following Sec. 728, Sec. 728. Meaning of terms used. The terms used in this subchapter shall have the same meaning as when used in Chapter 1. Secs. 723 to 728, inclusive, Sec. 729. (a) General rule.-All Sec. 729. (a) General rule.-All provisions of law (including pen- provisions of law (including penalties) applicable in respect of the alties) applicable in respect of the taxes imposed by Chapter 1, shall, taxes imposed by Chapter 1, shall, insofar as not inconsistent with insofar as not inconsistent with this subchapter, be applicable in this subchapter, be applicable in respect of the tax imposed by this respect of the tax imposed by this subchapter. subchapter. Sec. 729. (b) Returns.— See. 789, (b) (1) Computation of excess profits credits. In the case of a taxpayer which under section 712 or section 741 is en titled to have the excess profits eredit computed under section 713 or section 714, whichever results in the lesser tax under this subchap ter, the return under this subebap ter for any taxable year shall contain computations of two tenta tive taxes, one with the credit computed under section 713 and one with the credit computed under section 714; and the return shall contain all information which the Commissioner, by regulations pre scribed by him with the approval of the Secretary, may prescribe as necessary for such computations, Sec. 729. (b) Returns.— See. 720 (b) (1) Computation of excess profits credits. In the case of a taxpayer which under section 712 or section 741 is titled to have the execce profite credit computed under section 713 or section 714, whichever results in the lessor tax under this subchapter, the return under this subchap tor for any taxable year shall contain computations of two tenta tive taxee, one with the credit computed under section 713 and one with the credit computed under section 714; and the return chall sontain all information which the Commissioner, Commissioner, by regulations pre ecribed by him with the approval of the Secretary, may prescribe as necessary for such computations. Sec. 729. Laws applicable. Sec. 729. (a) General rule.—All provisions of law (including penalties) applicable in respect of the taxes imposed by Chapter 1, shall, insofar as not inconsistent with this subchapter, be applicable in respect of the tax imposed by this subchapter. Sec. 729. (b) Returns. See. 729. (b) (1) Computation of excess profits eredits. In the eace of a taxpayer which under section 712 or section 741 io on titled to have the excess profite credit computed under section 713 or section 714, whichever results in the leover tax under this subchap ter, the return under this subchap ter for any taxable year shall contain computations of two tenta tive taxes, one with the credit computed under section 713 and one with the credit computed under Section 714; and the return ohall contain all information which the Commissioner, by regulations pro scribed by him with the approval of the Secretary, may prescribe as nececcary for such computations. Taxable Years Sec. 729. (b) (2) No return required. Notwithstanding subsection (a), no return under section 52 (a) shall be required to be filed by any taxpayer under this subchapter for any taxable year for which its excess profits net income, computed with the adjustments provided in section 711 (a) (2) and placed on an annual basis as provided in section 711 (a) (3), is not greater than $5,000, or in the case of a mutual insurance company (other than life or marine) which is an interinsurer or reciprocal underwriter, is not greater than $50,000. Taxable Years If the taxpayer states in such re Taxable Years If the taxpayer states in such re turn that it disclaims the use of one of such credits in the computation of the tax under this subchapter for the taxable year, the computation and information based on such credit may be omitted from the re turm Sec. 729. (b) (2) No return reSec. 729. (b) (2) No return required. Notwithstanding subsec- quired.-Notwithstanding subsection (a), no return under section 52 tion (a), no return under section 52 (a) shall be required to be filed by (a) shall be required to be filed by any taxpayer under this subchapter any taxpayer under this subchapter for any taxable year for which its for any taxable year for which its excess profits net income, computed excess profits net income, computed with the adjustments provided in with the adjustments provided in section 711 (a) (2) and placed on section 711 (a) (2) and placed on an annual basis as provided in secan annual basis as provided in section 711 (a) (3), is not greater tion 711 (a) (3), is not greater than $5,000, or in the case of a mu- than $5,000. tual insurance company (other than life or marine) which is an interinsurer or reciprocal underwriter, is not greater than $50,000. Sec. 729. (b) (3) Consolidated Sec. 729. (b) (3) Consolidated returns. For provisions relating returns.-For provisions relating to consolidated returns, see section to consolidated returns, see section 141. 141. Sec. 729. (c) Foreign taxes Sec. 729. (c) Foreign taxes Sec. 729. (c) Foreign taxes paid. In the application of sec- paid. In the application of sec- paid. In the application of section 131 for the purposes of this tion 131 for the purposes of this tion 131 for the purposes of this subchapter the tax paid or accrued subchapter the tax paid or accrued subchapter the tax paid or accrued to any country shall be deemed to to any country shall be deemed to to any country shall be deemed to be the amount of such tax reduced be the amount of such tax reduced be the amount of such tax reduced by the amount of the credit al- by the amount of the credit al- by the amount of the credit allowed with respect to such tax lowed with respect to such tax lowed with respect to such tax against the tax imposed by Chap- against the tax imposed by Chap- against the tax imposed by Chapter ter 1. ter 1. Sec. 729. (d) Limitations on amount of foreign tax credit.—The amount of the credit taken under this section shall be subject to each of the following limitations: Sec. 729. (d) (1) The amount of the credit in respect of the tax paid or accrued to any country shall not exceed the same proportion of the tax against which such credit is taken, which the taxpayer's excess profits net income from sources within such country bears to its entire excess profits net income for the same taxable year; and Sec. 729. (d) (2) The total amount of the credit shall not exceed the same proportion of the tax against which such credit is taken, which the taxpayer's excess profits net income from sources without Sec. 729. (d) Limitations on amount of foreign tax credit. The amount of the credit taken under this section shall be subject to each of the following limitations: 1. Sec. 729. (d) Limitations on amount of foreign tax credit. The amount of the credit taken under this section shall be subject to each of the following limitations: Sec. 729. (d) (1) The amount of Sec. 729. (d) (1) The amount of the credit in respect of the tax paid the credit in respect of the tax paid or accrued to any country shall not or accrued to any country shall not exceed the same proportion of the exceed the same proportion of the tax against which such credit is tax against which such credit is taken, which the taxpayer's excess taken, which the taxpayer's excess profits net income from sources profits net income from sources within such country bears to its within such country bears to its entire excess profits net income for entire excess profits net income for the same taxable year; and the same taxable year; and Sec. 729. (d) (2) The total Sec. 729. (d) (2) The total amount of the credit shall not ex-amount of the credit shall not exceed the same proportion of the tax ceed the same proportion of the tax against which such credit is taken, against which such credit is taken, which the taxpayer's excess profits which the taxpayer's excess profits net income from sources without net income from sources without |