2634 DOUBLE INCOME TAX-SHIPPING PROFITS-GERMANY. Accordingly, it is requested that the German Government be apprised that upon completion of the action proposed in the Note of the Foreign Office of September 3, 1924, the equivalent exemption provision of Section 213(b) (8) of both the Revenue Acts of 1921 and 1924 will be satisfied and that the income of a non-resident alien or foreign corporation from sources within the United States which consists exclusively of earnings of a ship or ships documented under the laws of Germany will be exempt from Federal Income tax and that such exemption will be applicable for the year 1921 and sub- sequent years. In this connection it should be pointed out that certain German shipping concerns have been ~ranted until December 15th to complete their 1923 tax returns and It is desirable that this information be communicated to the German Government as expedi- tiously as possible. This Department would appreciate prompt advice of the action of the competent German authorities. . It is to be observed from the foregoing that the Treasury Depart- ment refers to the categorical statement of the German Foreign Office "That the German Government will abstain from a supple- mentary collection of taxes for the period since January 1, 1921, if the American Government grants reciprocity" and that this state- ment is a "binding official declaration of the German Government." It will also be observed that the Treasury Department states that in view of this categorical statement and a proposed amendment by the Commonwealth Minister of Finance to his Order of August 10, 1923, it considers that the German Government will meet the equiv- alent exemption provision of Section 213(b) (8) of the Revenue Act of 1924 upon the issuance of the necessary orders referred to in the Ministry's Note of September 3, 1924, under reference. The Treas- ury Department expresses the same opinion with respect to the yeaTS 1921,1922 and 1923 under the proviSIOn of Section 213(b) (8) of the Revenue Act of 1921. In b~n~ the foregoing to the attention of the Ministry, the Embassy IS mstructed to point out that upon the completion of the action proposed in the Ministry's Note of September 3, 1924, the equivalent exemption provision of Section 213(b) (8) of both of the Revenue Acts of 1921 and 1924 will be satisfied and that theincome of a nonresident alien or foreign corporation from sources within the United States which consists exclusively of earnings of a ship or ships documented under the laws of Germany will be exempt from Federal income tax and that such exemption will be applicable for the year 1921 and subsequent years. In view of the statement of the Treasury Department that certain German shipping concerns have been gI'anted until December 15th to comp'lete their 1923 tax returns, the Ministry will appreciate the desirability of advising the Embassy as soon as :possible with respect to the action taken by the German authorities m the matter of the proposed amendment by the Minister of Finance of his Order of August 10, 1923, 80 that the Treasury Department of the United States Government may, in turn, be definitely advised in the premises. To the BERLIN, November 29,1924. MINISTRY FOR FOREIGN AFFAIRS, Berlin.
