PUBLIC LAWS-CH. 757-OCT. 8 , 1940 [CHAPTER 757] October 8, 1940 [H. R .104131 [Public, No. 801] Second Revenue Act of 1940. Corporationsin gen- eral. 53 Stat. 7 , 863. 26 U. S. C., Supp. V, J13(b). Ante, p. 517. 53 Stat. 8, 78,71, 98. 26 U. S. C., Supp. V, §I 14, 231 (a), 201- 208, 361 -362 . Foreign corpora- tions. 63 Stat. 8, 864. 26 U. S. C., Supp. V, 14(e), § 14 (note). Ante, p. 518 . Mutual investment companies. 53 Stat. 99, 866. 26 U. S. C., Supp. V, 1382(b). Ante, p. 518. Defense tax. 63 Stat.9. 26 U. S. C., Supp. V,§15. Ante. p . 520. Supra. Taxable years to which applicable. AN ACT To provide revenue, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Second Revenue Act of 1940". TITLE I-CORPORATION INCOME TAX SEC. 101. CORPORATION INCOME TAX. (a) TAX ON CORPORATIONS IN GENERAL. - Section 13 (b) of the Internal Revenue Code, as amended by section 3 of the Revenue Act of 1940, is amended to read as follows: "(b) IMPOSITION OF TAx. - There shall be levied, collected, and paid for each taxable year upon the normal-tax net income of every corporation the normal-tax net income of which is more than $25,000 (except a corporation subject to the tax imposed by section 14, sec- tion 231 (a), Supplement G, or Supplement Q) whichever of the following taxes is the lesser: "(1) GENERAL RULr--A tax of 221 per centum of the normal- tax net income; or "(2) ALTERNATIVE TAX (CORPORATIONS WITH NORMAL-TAX NET INCOME SLIGHTLY MORE THAN $25,000).- -A tax of $3,775, plus 35 per centum of the amount of the normal-tax net income in excess of $25,000." (b) TAX ON FOREIGN CORPORATIONS. -Section 14 (c) (1) of the Internal Revenue Code, as amended by section 3 of the Revenue Act of 1940, is amended to read as follows: "(c) FOREIGN CORPORATIONS. - - "(1) In the case of a foreign corporation engaged in trade or business within the United States or having an office or place of business therein, the tax shall be an amount equal to 22A per centum of the normal-tax net income, regardless of the amount thereof." (c) TAX ON MUTUAL INVESTMENT COMPANIES. -Section 362 (b) of the Internal Revenue Code, as amended by section 3 of the Revenue Act of 1940, is amended to read as follows: "(b) IMPOsrrITION OF TAX.- There shall be levied, collected, and paid for each taxable year upon the Supplement Q net income of every mutual investment company a tax equal to 2216 per centum of the amount thereof." (d) DEFENSE TAX FOR FIvE YEARS. -T he first sentence of section 15 of the Internal Revenue Code, added to such Code by section 201 of the Revenue Act of 1940, is amended to read as follows: "In the case of any taxpayer, the amount of tax under this chapter for any tax- able year beginning after December 31, 1939, and before January 1, 1945, shall be the tax computed without regard to this section, increased by 10 per centum; except that in the case of a corporation the increase shall be limited to 10 per centum of the tax computed without regard to the amendments made by section 101 (a), (b), and (c) of the Second Revenue Act of 1940." (e) TAXABLE YEARS TO WHICH APPLICABLE. -Amendments made by this section shall be applicable only with respect to taxable years beginning after December 31, 1939. [54 SrAlr.
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