52 STAT.] 75TH CONG., 3D SESS.-CH. 289-MAY 28, 1938 (g) ALLOWANCE OF DEDUCTIONS AND CREDITS. -C itizens of the United States and domestic corporations entitled to the benefits of this section shall receive the benefit of the deductions and credits allowed to them in this title only by filing or causing to be filed with the collector a true and accurate return of their total income received from all sources in the United States, in the manner pre- scribed in this title; including therein all the information which the Commissioner may deem necessary for the calculation of such deductions and credits. (h) CREDITS AGAINST TAx. -Persons entitled to the benefits of this section shall not be allowed the credits against the tax for taxes of foreign countries and possessions of the United States allowed by section 131. (i) AFFILIATION.- A corporation entitled to the benefits of this section shall not be deemed to be affiliated with any other corporation within the meaning of section 141. SEC. 252. CITIZENS OF POSSESSIONS OF UNITED STATES. (a) Any individual who is a citizen of any possession of the United States (but not otherwise a citizen of the United States) and who is not a resident of the United States, shall be subject to taxation under this title only as to income derived from sources within the United States, and in such case the tax shall be computed and paid in the same manner and subject to the same conditions as in the case of other persons who are taxable only as to income derived from such sources. (b) Nothing in this section shall be construed to alter or amend the provisions of the Act entitled "An Act making appropriations for the naval service for the fiscal year ending June 30, 1922, and for other purposes", approved July 12,1921, relating to the imposition of income taxes in the Virgin Islands of the United States. Supplement K-China Trade Act Corporations SEC. 261. TAXATION IN GENERAL A corporation organized under the China Trade Act, 1922, shall be taxable as provided in section 14 (d). For inclusion in computa- tion of tax of amount specified in shareholder's consent, see section 28. SEC. 262. CREDIT AGAINST NET INCOME. (a) ALLOWANCE OF CREDIT.- For the purpose only of the taxes imposed by sections 14 and 602 of this Act and section 106 of the Revenue Act of 1935 there shall be allowed, in the case of a corpora- tion organized under the China Trade Act, 1922, in addition to the credits against net income otherwise allowed such corporation, a credit against the net income of an amount equal to the proportion of the net income derived from sources within China (determined in a similar manner to that provided in section 119) which the par value of the shares of stock of the corporation owned on the last day of the taxable year by (1) persons resident in China, the United States, or possessions of the United States, and (2) individual citizens of the United States or China wherever resident, bears to the par value of the whole number of shares of stock of the corpora- tion outstanding on such date: Provided, That in no case shall the diminution, by reason of such credit, of the tax imposed by such section 14 (computed without regard to this section) exceed the amount of the special dividend certified under subsection (b) of this 533 Allowance of deduc- tions and credits. Credits against tax. Ante, p. 506. Affiliation. Ante, p. 508. Citizens of posses- sions of United States. Taxation. Virgin Islands. Imposition of in- come taxes. 42 Stat. 123. China Trade Act corporations. Taxation in general. 42 Stat. 849. Ante, pp. 457, 470. Credit against net income. Allowance. Ante, p . 456; post, p. 5B7. 49 Stat. 1019. Ante, p. 504. Proviso. Limitation. Ante, p. 456.
�
