Taxable Years this chapter) would have accrued directly to or for the use of or would be applied for the benefit of such State or political subdivision, bears to the amount of the net income from the operation of such bridge for such taxable year. No such refund shall be made unless the entire amount of the refund is to be applied in part payment for the acquisition of such bridge. Sec. 116. (e) (2) If by the terms of such contract no part of the proceeds from the operation of the bridge or the taxable year would, irrespective of the tax imposed by this chapter, accrue directly to or for the use of or be applied for the benefit of such State or political subdivision, then the tax upon the net income from the operation of such bridge shall be levied, assessed, collected, and paid in the manner and at the rates prescribed in this chapter. Taxable Years Same as 1944. Taxable Years Beginning in 1946 and 1947 Same as 1944. Sec. 116. (f) Dividend from Sec. 116. (f) Dividend from Sec. 116. (f) Dividend from Sec. 116. (g) Shipowners' pro Sec. 116. (g) Shipowners' protection and indemnity associations. Same as 1944. Same as 1944. Sec. 116. (g) Shipowners' protection and indemnity associa-tection and indemnity associations.-The receipts of shipowners' tions. mutual protection and indemnity associations not organized for profit, and no part of the net earnings of which inures to the benefit of any private shareholder; but such corporations shall be subject as other persons to the tax upon their net income from interest, dividends, and rents. Sec. 116. (h) Compensation of Sec. 116. (h) Compensation of employees of foreign governments or of the Commonwealth of the Philippines.— Sec. 116. (h) (1) Rule for exclusion.-Wages, fees, or salary of any employee of a foreign government or of an international organ employees of foreign govern- Sec. 116. (h) (1) Rule for exclusion, Same as 1945. Taxable Years Sec. 116. (f) Dividend from “China Trade Act" corporation. Same as 1944. Sec. 116. (g) Shipowners' protection and indemnity associations. Same as 1944. Sec. 116. (h) Compensation of employees of foreign governments or of the Commonwealth of the Philippines. Taxable Years the tax imposed by this chapter) Sec. 116. (e) (2) If by the terms of such contract no part of the proceeds from the operation of the bridge for the taxable year would, irrespective of the tax imposed by this chapter, accrue directly to or for the use of or be applied for the benefit of such State or political subdivision, then the tax upon the net income from the operation of such bridge shall be levied, assessed, collected, and paid in the manner and at the rates prescribed in this chapter. Sec. 116. (f) Dividend from “China Trade Act" corporation. -In the case of a person, amounts distributed as dividends to or for his benefit by a corporation organized under the China Trade Act, 1922, 42 Stat. 849 (U. S. C., Title 15, c. 4), if at the time of such distribution, he is a resident of China, and the equitable right to the income of the shares of stock of the corporation is in good faith vested in him. as 1921 Section originated Sec. 213 (b) (12), R. A. of 1921. Sec. 116. (g) Shipowners' pro- Sec. 116. (g) Shipowners' protection and indemnity associa-tection and indemnity associations. The receipts of shipowners' tions. mutual protection and indemnity associations not organized for profit, and no part of the net earnings of which inures to the benefit of any private shareholder; but such corporations shall be subject as other persons to the tax upon their net income from interest, dividends, and rents. Sec. 116. (h) Compensation of employees of foreign governments or of the Commonwealth of the Philippines. Sec. 116. (h) (1) Rule for ex- Sec. 116. (h) (1) Rule for exclusion.-Wages, fees, or salary of clusion.-Wages, fees, or salary of an employee of a foreign govern- an employee of a foreign government or of an international organ- ment or of the Commonwealth of For any amendments prior to 1944, see Second Edition, p. 88, Taxable Years ization or of the Commonwealth of the Philippines (including a consular or other officer, or a nondiplomatic representative) received as compensation for official services to such government, international organization, or such Commonwealth (A) If such employee is not a citizen of the United States, or is a citizen of the Commonwealth of the Philippines (whether or not a citizen of the United States); and (B) If, in the case of an employee of a foreign government or of the Commonwealth of the Philippines, the services are of a character similar to those performed by employees of the Government of the United States in foreign countries or in the Commonwealth of the Philippines, as the case may be; and Same as 1944. Sec. 116. (h) (2) Certificate by Sec. 116. (h) (2) Certificate by Secretary of State. The Secre- Secretary of State. tary of State shall certify to the Secretary of the Treasury the names of the foreign countries which grant an equivalent exemption to the employees of the Government of the United States performing services in such foreign countries, and the character of the services performed by employees of the Government of the United States in foreign countries. If the Commonwealth of the Philippines grants an equivalent exemption to the employees of the United States performing services in such Com Sec. 116. (h) (2) Certificate by Secretary of State. Same as 1944. the Philippines (including a con- ization or of the Commonwealth of (A) If such employee is not a citizen of the United States, or is a citizen of the Commonwealth of the Philippines (whether or not a citizen of the United States); and (B) If, in the case of an employee of a foreign government or of the Commonwealth of the Philippines, the services are of a character similar to those performed by employees of the Government of the United States in foreign countries or in the Commonwealth of the Philippines, as the case may be; and (C) If, in the case of an employee of a foreign government or the Commonwealth of the Philip pines, the foreign government, or the Commonwealth of the Philip pines, whose employee is claiming exemption grants an equivalent exemption to employees of the Government of the United States performing similar services in such foreign country or such Commonwealth, as the case may be. Sec. 116 (h) (1), I. R. C., supra, amended by Sec. 4, Act of Dec. 29, 1945 (59 Stat. ..), by omitting language in strickenthrough type and adding language in italics. (A) If such employee is not a citizen of the United States, or is a citizen of the Commonwealth of the Philippines (whether or not a citizen of the United States); and (B) If the services are of a character similar to those performed by employees of the Government of the United States in foreign countries or in the Commonwealth of the Philippines, as the case may be; and (C) If the foreign government, or the Commonwealth of the Philippines, whose employee is claiming exemption grants an equivalent exemption to employees of the Government of the United States performing similar services in such foreign country or such Commonwealth, as the case may be. Retroactivity See amendment of Sec. 116 (h) (1) in 1945 column which is retroactively applicable to taxable years beginning after Dec. 31, 1943. Sec. 116. (h) (2) Certificate by Secretary of State. Same as 1944. Sec. 116. (h) (2) Certificate by Secretary of State.-The Secretary of State shall certify to the Secretary of the Treasury the names of the foreign countries which grant an equivalent exemption to the employees of the Government. of the United States performing services in such foreign countries, and the character of the services performed by employees of the Government of the United States in foreign countries. If the Commonwealth of the Philippines grants an equivalent exemption to the employees of the United States performing services in such Com Sec. 116. (h) (2) Certificate by Secretary of State. Section originated 1936 as Eighth Edition, p. 196, Taxable Years Beginning in 1949 monwealth the Secretary of State shall certify such fact to the Secretary of the Treasury and the character of the services performed by employees of the Government of the United States in such Commonwealth. Sec. 116. (i) Treasury bills. For exemption from taxation of gain derived from the sale or other disposition of Treasury Bills, issued after June 17, 1930, under the second Liberty bond act, as amended, see Act of June 17, 1930, c. 512, 46 Stat. 775 (U. S. C., Title 31, § 754). Sec. 116. (3) In the case of a clerk or employee in the Foreign Service of the United States, amounts received as cost-of-living allowances under authority of section 3, as amended, of the Act of February 23, 1931; and in the case of an ambassador, minister, diplomatic, consular, or Foreign Service officer, amounts received as post allowances under the authority of section 12, as amended and renumbered, of the Act of May 24, 1924; and in the case of other civilian officers or employees of the Government of the United States stationed outside continental United States, amounts received as costof-living allowances in accordance with regulations approved by the President. |