77TH CONG. , 2D SESS.-CH. 619-OCT. 21 , 1942 (e) TECHNICAL AMENDMENTS MADE NECESSARY BY CHANGE IN BASE FOR CORPORATE TAX. - (1) CREDIT FOR DIVIDENDS RECEIVED. - The first sentence of sec- tion 26 (b) is amended to read as follows: "85 per centum of the amount received as dividends from a domestic corporation which is subject to taxation under this chapter, but not in excess of 85 per centum of the adjusted net income reduced by the credit for income subject to the tax imposed by Subchapter E of Chapter 2 provided in subsection (e)." (2) COMPUTATION OF SECTION 102 NET INCOME.-Section 102 (d) (1) (relating to the definition of section 102 net income) is amended by inserting at the end thereof the following new subparagraph: "(D) Income Subject to Excess-Profits Tax. -T he credit for income subject to the tax imposed by Subchapter E of Chapter 2 provided in section 26 (e)." (3) COMPUTATION OF NET OPERATING LOSS DEDUICTION.-Section 122 (relating to net operating loss) is amended as follows: (A) Subsection (a) is amended to read as follows: "(a) DEFINITION OF NET OPERATING Loss. -As used in this section, the term 'net operating loss' means the excess of the deductions allowed by this chapter over the gross income, with the exceptions, additions, and limitations provided in subsection (d)." (B) Subsection (c) is amended by striking out the paren- thesis at the end thereof and inserting in lieu thereof the following: "and without the credit provided in section 26 (e))". (C) Subsection (d) is amended by striking out "exceptions and limitations" and inserting in lieu thereof "exceptions additions, and limitations" and by inserting at the end thereof the following new paragraph: "(6) There shall be aflowed as a deduction the amount of tax imposed by Subchapter E of Chapter 2 paid or accrued within the taxable year, subject to the following rules- "(A) No reduction in such tax shall be made by reason of the credit for income, war-profits, or excess-profits taxes paid to any foreign country or possession of the United States; "(B) Such tax shall be computed without regard to the adjustments provided in section 734; and "(C) Such tax, in the case of a consolidated return for excess-profits tax purposes, shall be allocated to the mem- bers of the affiliated group under regulations prescribed by the Commissioner, with the approval of the Secretary." SEC. 106. TAX ON NONRESIDENT ALIEN INDIVIDUALS. (a) TAX IN GENERAL. -Section 211 (a) (1) (A) (relating to tax on nonresident alien individuals not engaged in trade or business within the United States) is amended by striking out "27Y per centum" and inserting in lieu thereof "30 per centum". The amend- ments made by this subsection shall apply with respect to amounts received after the ninth day after the date of the enactment of this Act regardless of whether the taxable year of the recipient begins before January 1, 1942, or after December 31, 1941. (b) AGGREGATE RECEIPTS MORE THAN $15,400. -Section 211 (a) (2) is amended to read as follows: "(2) AGGREGATE MORE THAN $15,400.- The tax imposed by paragraph (1) shall not apply to any individual if the aggregate amount received during the taxable year from the sources therein specified is more than $15,400." 53 Stat. 19. 26 U.S. C. 26(b). Ante, p. 806. 53 Stat. 35. 26 U. S.C. 102 (d) (1);Supp. I, 1102 (d) Post, p. 836. Ante, p. 806 . 53 Stat. 867 . 26 U.S. C. 122. Post, pp. 844, 847, 848. Infra. Pob, p. 848. Ante, p. 806 . Polt, p. 844. 54 Stat. 975. 26U.S. C. §(710- 752; Supp. I, 4i 710- 743. Poat, p. 899. nbat,p. 921. 53 Stat. 75. 26 U. S. C., Supp. I, 1211 (a) (1) (A). Poet, p. 861 . 53 Stat. 75. 26U. S . C., Supp. I, 211 (a) (2). 56 STAT.] 807
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