80 CODIFICATION OF INTERNAL REVENUE LAWS (2) If, in the case of such corporation, 50 per centum or more of its gross income (computed without the benefit of this section) for such period or such part thereof was derived from the active conduct of a trade or business within a possession of the United States; or (3) If, in case of such citizen, 50 per centum or more of his gross income (computed without the benefit of this section) for such period or such part thereof was derived from the active con- duct of a trade or business within a possession of the United States either on his own account or as an employee or agent of another. (b) AM3oUNTS RECEIVED IN UNITED STATES.-Notwithstanding the provisions of subsection (a) there shall be included in gross income all amounts received by such citizens or corporations within the United States, whether derived from sources within or without the United States. (c) TAX IN CASE OF CORPORATIONS. - (1) SECTION IMPOSING TAX. - A domestic corporation entitled to the benefits of this section shall be taxable as provided in section 14 (d). (2) CROss REFERENCE.- For inclusion in computation of tax of amount specified in share- holder's consent, see section 28. (d) DEFINITION.- As used in this section the term "possession of the United States" does not include the Virgin Islands of the United States. (e) DEDUCrTINS. - (1) Citizens of the United States entitled 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 engaged in trade or business within the United States or having an office or place of business therein. (2) Domestic corporations entitled to the benefits of this section shall have the same deductions as are allowed by Supplement I in the case of a foreign corporation engaged in trade or business within the United States or having an office or place of business therein. (f) CREDITS AGAINST NET INCOME. -A citizen of the United States entitled to the benefits of this section shall be allowed a personal exemption of only $1,000 and shall not be allowed the credit for dependents provided in section 25 (b) (2). (g) ALLOWANCE OF DEDUcrIONS AND CREDrrS. - Citizens of the United States and domestic corporations entitled to the benefits of this section shall receive the benefit of the deductions and credits allowed to them in this chapter only by filing or causing 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 chapter; including therein all the information which the Commissioner may deem necessary for the calculation of such deductions and credits. (h) CREDrrs AGAINST TAx.-Persons entitled to the benefits of this section shall not be allowed the credits against the tax for taxes of foreign countries and possessions of the United States allowed by section 131. (i) AFFILIATION.- A corporation entitled to the benefits of this section shall not be deemed to be affiliated with any other corporation 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 taxation under this chapter only as to income derived from sources within the United
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