53 STAT.] 76TH CONG. , 1 ST SESS.-CH. 247-JUNE 29, 1939 SEC. 202 . TAX ON BANKS AND TRUST COMPANIES. Section 104 (b) of the Internal Revenue Code (relating to the tax on banks) is amended to read as follows: " (b) RATE OF TAX.- - Banks shall be subject to tax under section 13 or section 14 (b)." SEC. 203. TAX ON LIFE INSURANCE COMPANIES. Section 201 (b) of the Internal Revenue Code (relating to the tax on life insurance companies) is amended to read as follows: "(b) IMPOSITION OF TAX.- " (1) IN GENERAL.- In lieu of the tax imposed by sections 13 and 14, there shall be levied, collected, and paid for each taxable year upon the normal-tax net income of every life insurance com- pany a tax at the rates provided in section 13 or section 14 (b). "(2) NORMAL-TAX NET INCOME OF FOREIGN LIFE INSURANCE COM- PANIEs.- In the case of a foreign life insurance company, the normal-tax net income shall be an amount which bears the same ratio to the normal-tax net income, computed without regard to this paragraph, as the reserve funds required by law and held by it at the end of the taxable year upon business transacted within the United States bear to the reserve funds held by it at the end of the taxable year upon all business transacted. "(3) No UNITED STATES INSURANCE BUSINESS. -Foreign life insurance companies not carrying on an insurance business within the United States and holding no reserve funds upon business transacted within the United States, shall not be taxable under this section but shall be taxable as other foreign corporations." SEC. 204. TAX ON INSURANCE COMPANIES OTHER THAN LIFE OR MUTUAL. Section 204 (a) of the Internal Revenue Code (relating to the tax on insurance companies other than life or mutual) is amended to read as follows: "(a) IMPosrITIN OF TAX.- "(1) IN GENERAL. -In lieu of the tax imposed by sections 13 and 14, there shall be levied, collected, and paid for each taxable year upon the normal-tax net income of every insurance company (other than a life or mutual insurance company) a tax at the rates provided in section 13 or section 14 (b). "(2) NORMAL-TAX NET INCOME OF FOREIGN CoMPANIES.- In the case of a foreign insurance company (other than a life or mutual insurance company), the normal-tax net income shall be the net income from sources within the United States minus the sum of- "(A) INTEREST ON OBLIGATIONS OF THE UNITED STATES AND rrs INSTRUMENTALITIES. - The credit provided in section 26 (a). "(B) DIVIDENDS RECEIVED. -The credit provided in section 26 (b). "(3) No UNITED STATES INSURANCE BUSINESS.-Foreign insur- ance companies not carrying on an insurance business within the United States shall not be taxable under this section but shall be taxable as other foreign corporations." SEC. 205. TAX ON MUTUAL INSURANCE COMPANIES OTHER THAN LIFE. Section 207 (a) of the Internal Revenue Code (relating to the tax on mutual insurance companies other than life) is amended to read as follows: "(a) IMPOSITION OF TAX.- "(1) IN GENERAL. - There shall be levied, collected, and paid for each taxable year upon the normal-tax net income of every 865 Banks and trust companies. Ante, p. 36. I.R.C.§104(b). Rate of tax. Ante, pp. 863, 864. I. R. C. §§13,14 (b). Life insurance com- panies. Ante, p. 71. I.R.C. 201(b). Imposition of tax. In general. Ante, pp. 863, 864. I.R.C.i§13,14. Normal-tax net in- come of foreign com- panies. No United States business. Insurance compa- nies other than life or mutual. Ante, p. 72. I. Rt.C. § 204 (a). Imposition of tax. In general. Ante, pp. 863, s64. I. R. 6. §i13, 14. Normal-tax net in- come of foreign com- panies. Interest on obliga- tions of United States and its instrumentali- ties. Ante, p. 18. I. R. C. 26(a). Dividends received. Ante, p. 19. I. R.C. §26(b). No United States insurance business. Mutual companies other than life. Ante, p. 74. I. R. C. §207 (a). Imposition of tax. In general.
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