73d C ONGRESS . SESS . II. CH. 277 . MAY 10. 1934. United States, whether derived from sources within or without the United States . (c) DEFINITION .-As used in this section the term " possession of the United States " does not include the Virgin Islands of the United States . (d) DEDucTIoNs .- (1) C itizens o f the Uni ted State s entitl ed to the benefits of this section shall have the same deductions as are allowed by Supple- ment H in the case of a nonresident alien individual . (2) Domest ic cor porati ons en titled to the benef its of this sec- tion shall have the same deductions as are allowed by Supplement I in the case of a foreign corporation . (e) CREDITS AGAINST NET INCOME .-A citizen of the United States entitled to the benefits of this section shall he allowed a personal exemption of only $1,000 and shall not be allowed the credit for dependents provided in section 25(b) (2) . (f) ALLOWANCE OF DEDUCTIONS AND CREDITS .-Citizens of the United States and d omesti c corp oratio ns enti tled t o the benefi ts of this section shall receive the benefit of the deductions and credits allowed to th em in this t itle o nly by filing or ca using to be filed with the collector a true and accurate return of their total income received from all sources in the United States, in the manner pre- scribed in this title ; including therein all the information which the Commissioner may deem necessary for the calculation of such deducti ons an d cred its . (g) CREDITS AGAINST TAx . -Persons entitled to the benefits of this sect ion shall not be a llowed th e credits against the tax f or taxes of foreign countries and possessions of the United States allowed by section 131 . (h) AFFILIATION .-A corporation entitled to the benefits of this section shall not be deemed to be affiliated with any other corpora- tion within the meaning of section 141 . SEC. 252 . CITIZENS OF POSSESSIONS OF UNITED STATES. (a) Any individual who is a citizen of any possession of the United States (but not otherwise a citizen of the United States) and who is not a resident of the United States, shall be subject to taxat ion u nder this titl e onl y as to i ncome deri ved from sourc es within the United States, and in such case the tax shall be com- puted and paid in t he sa me ma nner and subje ct to the same cond i- tions as in the case of other persons who are taxable only as to income derived from such sources . (b) Nothing in this section shall be construed to alter or amend the provisions of the Act entitled "An Act making appropriations for the naval servi ce for the f iscal year en ding J une 30 , 1922 . and for other purposes," approved July 12, 1921, relating to the imposi- tion of income taxes in the Virgin Islands of the United States . Supplement K-China Trade Act Corporations SEC. 261 . CRED IT AGAINST NET INCOME. (a) ALLOWANCE OF CREDIT .-For the purpose only of the tax imposed by section 13 there shall be allowed, in the case of a corpo- ration organized under the China Trade Act, 1922, in addition to the credit provided in section 26, a credit against the net income of an amount equal to the proportion of the net income derived from sources within China (determined in a similar manner to that provide d in s ection 119) which the pa r value of th e shar es of stock of the corporation owned on the last day of the taxable year by 739 INCOME TAX . POSSESSIONS OF UNITED STATES- Contd . Status of Virgin Is- lands . Deductions . Citize ns allowed same benefits as non- residents . Ante, p . 735. Domestic corpora- tions . Ante, p . 737 Cred its ag ain st net income. Personal exemption . Ante, p. 69.1 . -Allowance of deduc- tions and credits . Filing return of toted income. Credits against tax . No allowance for, of foreign countries . Ante, p . 718. Affiliation. Ap plicab ility t o cor- porations . Ante, p. 720. Citizens of Posses- sions of United States . Taxation of. Virgin Islands. Payment of taxes in not affected . Vol. 42, p. 123. CHINA TRADE ACT C ORPO RA- TIO NS. Credit against net income. Compu tatio n and proportion . Ante, p . 693- Ante, p . 716.
