938
PUBLIC LAW 86-778-SEPT. 13, 1960
[74 S T A T.
(ii) by striking out "section 210(n)" each place it appears and inserting in lieu thereof "section 210(m) ". 42 USC 405,409. (E) Section 2 0 5 (p)(l) of such Act is amended by striking out "subsection (m)(1) " and inserting in lieu thereof "subsection (1)(1)". (F) Section 209(j) of such Act is amended by striking out "section 210(k)(3)(C) " and inserting in lieu thereof "section 210(j)(3)(C) ". (G) Section 218(c)(6)(C) of such Act is amended by striking out "section 210(1)" and inserting in lieu thereof "section 210(k) ". 42 USC 411. (3) Section 211(a)(6) of such Act is amended to read as follows: "(6) A resident of the Commonwealth of Puerto Kico shall compute his net earnings from self-employment in the same manner as a citizen of the United States but without regard to the 26 USC 933. provisions of section 933 of the Internal Revenue Code of 1954;". 26 USC 1402. (k)(l) Section 1402(a) of the Internal Revenue Code of 1954 (relating to definition of net earnings from self-employment) is amended by striking out the period at the end of paragraph (8) and inserting in lieu thereof "; and", and by inserting after paragraph (8) the following new paragraph: "(9) the term 'possession of the United States' as used in sections 931 (relating to income from sources within possessions 26use 931,932. of the United States) and 932 (relating to citizens of possessions of the United States) shall be deemed not to include the Virgin Islands, Guam, or American Samoa." (2) Clauses (v) and (vi) in the last sentence of such section 1402(a) are each amended by striking out "paragraphs (1) through (7) " and inserting in lieu thereof "paragraphs (1) through (?) and paragraph (9)". (1) The last sentence of section 1402(b) of such Code (relating to definition of self-employment income) is amended by striking out "the Virgin Islands or a resident of Puerto Rico" and inserting in lieu thereof "the Commonwealth of Puerto Rico, the Virgin Islands, Guam, or American Samoa". 26 USC 1403. (m) Section 1403(b)(2) of such Code (relating to cross references) is amended by inserting ", Guam, American Samoa," after "Virgin Islands". 26 USC 3121. (n) Section 3121(b)(7) of such Code (relating to definition of employment) is amended to read as follows: "(7) service performed in the employ of a State, or any political subdivision thereof, or any instrumentality of any one or more of the foregoing which is wholly owned thereby, except that this paragraph shall not apply in the case of— " (A) service which, under subsection (j), constitutes covered transportation service, or " (B) service in the employ of the Government of Guam or the Government of American Samoa or any political subdivision thereof, or of any instrumentality oi any one or more of the foregoing which is wholly owned thereby, performed by an officer or employee thereof (including a member of the legislature of any such Government or political subdivision), and, for purposes of this title with respect to the taxes imposed by this chapter— " (i) any person whose service as such an officer or employee is not covered by a retirement system established by a law of the United States shall not, with respect to such service, be regarded as an employee of the United States or any agency or instrumentality thereof, and "(ii) the remuneration for service described in clause (i) (including fees paid to a public official) shall be deemed to have been paid by the Government of Guam
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