CH. 1—NORMAL TAXES AND SURTAXES (2) YEAR
13
OF CREDIT.—The amount so withheld during
any
calendar year shall be allowed as a credit for the taxable year beginning in such calendar year. If more than one taxable year begins in a calendar year, such amount shall be allowed as a credit for the last taxable year so beginning, (b) CREDIT FOR SPECIAL R E F U N D S OF SOCIAL SECURITY T A X. —
(1) IN GENERAL.—The Secretary or his delegate may prescribe regulations providing for the crediting against the tax imposed by this subtitle of the amount determined by the taxpayer or the Secretary (or his delegate) to be allowable under section 6413(c) as a special refund of tax imposed on wages. The amount allowed as a credit under such regulations shall, for purposes of this subtitle, be considered an amount withheld a t source as tax under section 3402. (2) YEAR OF CREDIT.—Any amount to which paragraph
(1)
applies shall be allowed as a credit for the taxable year beginning in the calendar year during which the wages were received. If more than one taxable year begins in the calendar year, such amount shall be allowed as a credit for the last taxable year so beginning. SEC. 32. TAX WITHHELD AT SOURCE ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS AND ON TAX-FREE COVENANT BONDS.
There shall be allowed as credits chapter— (1) the amount of tax withheld chapter 3 (relating to withholding on foreign corporations), and (2) the amount of tax withheld chapter 3 (relating to interest on
against the tax imposed by this at source under subchapter A of of tax on nonresident aliens and a t source under subchapter B of tax-free covenant bonds).
SEC. 33. TAXES OF FOREIGN COUNTRIES AND POSSESSIONS OF THE UNITED STATES.
The amount of taxes imposed by foreign countries and possessions of the United States shall be allowed as a credit against the tax imposed by this chapter to the extent provided in section 901. SEC. 34. DIVIDENDS RECEIVED BY INDIVIDUALS. (a) GENERAL RULE.—Effective with respect to taxable years ending
after July 31, 1954, there shall be allowed to an individual, as a credit against the tax imposed by this subtitle for the taxable year, an amount equal to 4 percep.t of the dividends which are received after July 31, 1954, from domestic corporations and are included in gross income. (b) LIMITATION ON AMOUNT OF C R E D I T. — The credit allowed by
subsection (a) shall not exceed whichever of the following is the lesser: (1) the amount of the tax imposed by this chapter for the taxable year, reduced by the credit allowable under section 33 (relating to foreign tax credit); or (2) the following percent of the taxable income for the taxable year: (A) 2 percent, in the case of a taxable year ending before January 1, 1955. (B) 4 percent, in the case of a taxable year ending after December 31, 1954. § 34(b)(2)(B)
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