Act of 1924. Act of 1921. Act of 1918. ITEMS NOT DEDUCTIBLE BY CORPORATIONS. SEC. 235. In computing net income no deduction shall in any ITEMS NOT DEDUCTIBLE BY COR PORATIONS. SEC. 235. That in computing ITEMS NOT DEDUCTIBLE. SEC. 235. That in computing net income no deduction shall in net income no deduction shall in Act of 1917. Act of 1916. Act of 1913. amount of such indebtedness not of the year, or, if no capital tal stock outstanding at the close in excess of the proportion of the stock, the entire amount of the of the year, or if no capital sum of (a) the entire amount capital employed in the busi- stock, the capital employed in the of the paid-up capital stock out-ness at the close of the year, business at the close of the year standing at the close of the year, and (b) one-half of its interest- which the gross amount of its or, if no capital stock, the entire bearing indebtedness then out- income for the year from busiamount of the capital employed standing which the gross ness transacted and capital inin the business at the close of the amount of its income for the vested within the United States year, and (b) one-half of its in- year from business transacted bears to the gross amount of its terest-bearing indebtedness then and capital invested within the income derived from all sources outstanding, which the gross United States bears to the gross within and without the United amount of its income for the year amount of its income derived States: Provided, That in the from business transacted and from all sources within and case of bonds or other indebtedcapital invested within the without the United States: Pro- ness which have been issued with United States bears to the gross vided, That in the case of bonds a guaranty that the interest payamount of its income derived or other indebtedness which able thereon shall be free from from all sources within and with- have been issued with a guar- taxation, no deduction for the out the United States: Provided, anty that the interest payable payment of the tax herein imThat in the case of bonds or thereon shall be free from taxa-posed shall be allowed; other indebtedness which have tion, no deduction for the paybeen issued with a guaranty that ment of the tax herein imposed the interest payable thereon shall or any other tax paid pursuant be free from taxation, no deduc- to such guaranty shall be altion for the payment of the tax lowed; and in case of a bank, herein imposed or any other tax banking association, loan paid pursuant to such guaranty trust company, or branch thereshall be allowed; and in case of of, interest paid within the year a bank, banking association, loan on deposits by or on moneys reor trust company, or branch ceived for investment from thereof, interest paid within the either citizens or residents of the year on deposits by or on moneys United States and secured by received for investment from interest-bearing certificates of either citizens or residents of the indebtedness issued by such United States and secured by bank, banking association, loan interest-bearing certificates of or trust company, or branch indebtedness issued by such thereof; bank, banking association, loan or trust company, or branch thereof; or SEC. 12. (b) "Fourth. Taxes SEC. 12. (b) Fourth. Taxes G. (b) [6] [g] (fourth) all paid within the year imposed by paid within the year imposed sums paid by it within the year the authority of the United by the authority of the United for taxes imposed under the auStates (except income and ex- States, or its Territories, or pos-thority of the United States or cess profits taxes) or of its Ter- sessions, or under the authority of any State or Territory thereritories, or possessions, or by the of any State, county, school dis- of or the District of Columbia. authority of any State, county, trict, or municipality, or other school district, or municipality, taxing subdivision of any State, or other taxing subdivision of paid within the United States, any State, paid within the not including those assessed United States, not including against local benefits; those assessed against local benefits." SEC. 12. (a) Second. [5] Provided, That no deduction shall SEC. 12. (a) Second. [5] Provided, That no deduction shall Act of 1924. case be allowed in respect of any of the items specified in section 215.276 any case be allowed in respect any case be allowed in respect CREDITS ALLOWED CORPORATIONS. CREDITS ALLOWED CORPORATIONS. SEC. 236. For the purpose only of the tax imposed by section 230,277 there shall be allowed the following credits: (a) The amount received as interest upon obligations of the United States which is included in gross income under section 233; and SEC. 236. (b) In the case of a domestic corporation the net income of which is $25,000 or less, a specific credit of $2,000; but if the net income is more than $25,000 the tax imposed by section 230 shall not exceed the tax which would be payable if the $2,000 credit were allowed, plus the amount of the net income in excess of $25,000. 276 Sec. 215, p. 112. 277 Sec. 230, p. 176. SEC. 236. That for the purpose only of the tax imposed by section 230277 there shall be allowed the following credits: (a) The amount received as interest upon obligations of the United States and bonds issued by the War Finance Corporation, which is included in gross income under section 233.278 SEC. 236. (b) In the case of a domestic corporation the net income of which is $25,000 or less, a specific credit of $2,000; but if the net income is more than $25,000 the tax imposed by section 230 shall not exceed the tax which would be payable if the $2,000 credit were allowed, plus the amount of the net income in excess of $25,000; and SEC. 236. (c) The amount of any war-profits and excess-profits taxes imposed by Act of Congress for the same taxable year. The credit allowed by this subdivision shall be determined as follows: CREDITS ALLOWED. SEC. 236. That for the purpose only of the tax imposed by section 230277 there shall be allowed the following credits: (a) The amount received as interest upon obligations of the United States and bonds issued by the War Finance Corporation, which is included in gross income under section 233;278 SEC. 236. (c) In the case of a domestic corporation, $2,000. (1) In the case of a corporaSEC. 236. (b) The amount of tion which makes return for a any taxes imposed by Title III fiscal year beginning in 1920 for the same taxable year: Proand ending in 1921, in comput- vided, That in the case of a coring the income tax as provided poration which makes return for in subdivision (a) of section a fiscal year beginning in 1917 205,280 the portion of the war- and ending in 1918, in computprofits and excess-profits tax ing the tax as provided in subcomputed for the entire period division (a) of section 205,280 the under clause (1) of subdivision tax computed for the entire (a) of section 335 shall be credited against the net income computed for the entire period as provided in clause (1) of subdivision (a) of section 205, and period under Title II of the Revenue Act of 1917 shall be credited against the net income. computed for the entire period under Title I of the Revenue Act 278 Sec. 233, p. 190. 279 Title I, Part III, Act of 1916, as amended by be allowed for any amount paid be allowed for any amount paid Act of 1913. SEC. 1211. [3] "SEC. 29.279 That in assessing income tax the net income embraced in the return shall also be credited with the amount of any excess profits tax imposed by Act of Congress and assessed for the same calendar or fiscal year upon the taxpayer, and, in the case of a member of a partnership, with his proportionate share of such excess profits tax imposed upon. the partnership. Sec. 1211, Act of 1917. 280 Sec. 205 (a), p. 46. Act of 1924. Act of 1921. Act of 1918. the portion of the war-profits of 1916 as amended by the Rev- (2) In the case of a corpora- PAYMENT OF CORPORATION IN COME TAX AT SOURCE. PAYMENT OF CORPORATION IN COME TAX AT SOURCE. PAYMENT OF TAX AT SOURCE. SEC. 237. In the case of for- SEC. 237. That in the case of SEC. 237. That in the case of eign corporations subject to foreign corporations subject to foreign corporations subject to taxation under this title not en- taxation under this title not en- taxation under this title not gaged in trade or business with- gaged in trade or business with- engaged in trade or business in the United States and not in the United States and not within the United States and not having any office or place of having any office or place of having any office or place of busibusiness therein, there shall be business therein, there shall be ness therein, there shall be dededucted and withheld at the deducted and withheld at the ducted and withheld at the source in the same manner and source in the same manner and source in the same manner and upon the same items of income upon the same items of income upon the same items of income as is provided in section 221282 as is provided in section 221282 a as is provided in section 221282 a tax equal to 122 per centum tax equal to 10 per centum thereof (but during the calendar thereof, and such tax shall be year 1921 only 10 per centum), returned and paid in the same and such tax shall be returned manner and subject to the same and paid in the same manner conditions as provided in that and subject to the same condi- section: Provided, That in the tions as provided in that section: case of interest described in subProvided, That in the case of division (b) of that section the interest described in subdivision deduction and withholding shall (b) of that section the deduction be at the rate of 2 per centum. and withholding shall be at the a tax equal to 122 per centum thereof, and such tax shall be returned and paid in the same manner and subject to the same conditions as provided in that section: Provided, That in the case of interest described in subdivision (b) of that section the deduction and withholding shall be at the rate of 2 per centum. rate of 2 per centum. 281 Title I, Part II, Act of 1916, as amended by Sec. 1208, Act of 1917. |