Page:United States Statutes at Large Volume 42 Part 1.djvu/301

SIXTYSEVENTH CONGRESS. Sess. I._ Ch. 136. 1921. 273 rived from a separate trade or business or a distinctl se arate WAR Mm “°”S branch of the trade or business) which if cbnstituting their sold) trade moms ML or business would bring it within the class of "personal service corporations," then (under regulations prescribed by the Commissioner with the approval of the ecretary) the tax upon the first part of such net income shall be separately computed (allowing in such computation only the same proportionate part of the credits authorized in section 312), and the tax upon the second part shall be the same percentage thereof as the tax so computed upon the first part is of p,,,,,i,,,_ such first part: Provided, That the tax upon such second part shall Mi"i‘““m*’”‘· in no case e less than 20 per centum thereof, unless the tax upon the entire net income, if computed without benefit of this section, would constitute less than 20 per centum of such entire net income, in which event the tax shall be determined upon the entire net income, without reference to this section, as other taxes are determined under this Ijmjtatious, title. The total tax computed under this section shall be subject to the limitations provided in section 302. Exempm mpm_ Sec. 304. (a) That the corporations enumerated in section 231 tions. shall, to the extent that they are exempt from income tax under A""’p'm° Title II, be exempt from taxation under this title. _ (b) Any corporation whose net income for the taxable ear is less Ex°mp°°° °m’°°°` than $3,000 shall be exempt from taxation under this title. I fr (c) In the case of any corporation engaged in the mining of old, mixiglligsmgii md the portion of the net income derived from the mining of gold shadl be exem t from the tax imposed by this title or any tax imposed by _ _ Title lll of the Revenue Act of 1917, and the tax on the remaining p0';g’,§¤_°“ ‘°‘“’“““‘g portion of the net income shall be the same proportion of a tax computed without the benefit of this subdivision which such remaining portion of the net income bears to the entirenet income. _ Sec. 305. That if a tax is computed under this title for a period of ii§ii°"{§’§°,’§i§‘,_‘{,'g_f°' 1** less than twelve months, the specific exemption of $3,000, wherever referred to in this title, shall be reduced to an amount which is the same proportion of $3,000 as the number of months in the period is of twelve months. PART III.—EXCESS-PROFITS Cimmr. omits. Sec. 312. That the excess-profits credit shall consist of a specific ,i$i"$$ci$,°§°l'}‘é{*i§’}} exemption of $3,000 plus an amount equal to 8 per centum of the °°‘· invested capital for the taxable year. _ _ N u A foreign cor oration or a corporation entitled to the benefits of ,m°,j}’§§‘,e,'i,,,°’;0°‘r‘;)¥_; section 262 shall) not be entitled to the specific exemption of $3,000. r¤¤¤¤s,¤¢c. PART IV.-—NET Income. N¤¢i¤<¤>¤¤¤~ Sec. 320. That for the purpose of this title the net income of a mQ1¤mbc§J=ij=g<g::v¤¤- corporation shall be ascertained and returned for the taxable year upon the same basis and in the same manner as provided for income tax purposes in Title II of this Act. PART V.—·INW’ESTED CAPITAL. mmmmpmi Sec. 325. (a) That as used in this title—— _ {‘°°”*“-‘¤f"°°"m’· The term " intangible property" means patents, cnlpyrights, secret m_;yI§§*8¤8*bl° vr¤1>- processes and formulae, good will, trade—marks, tra e-brands, franchises and other like ro ert ; H _ The? EBIT!]. "tangibl§ PIPOPGZTUU 11168118 stocks, bonds, notes, and cnyljgngnble propother evidences of indebtedness, bills and accounts receivable, leaseholds, and other property other than intangible property; 42150°-—-23-—¥18