75TH CONG., 3D SESS.- CH. 289-MAY 28, 1938 (d) SPECIAL CLASSES OF CORPORATIONS. -In the case of the following corporations the tax shall be an amount equal to 161/2 per centum of the special class net income, regardless of the amount thereof: (1) Banks, as defined in section 104. (2) Corporations organized under the China Trade Act, 1922. (3) Corporations which, by reason of deriving a large portion of their gross income from sources within a possession of the United States, are entitled to the benefits of section 251. (e) FOREIGN CORPORATIONS.- (1) 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, the tax shall be an amount equal to 19 per centum of the special class net income, regardless of the amount thereof. (2) In the case of a foreign corporation not engaged in trade or business within the United States and not having an office or place of business therein, the tax shall be as provided in section 231 (a). (f) INSURANCE COMPANIES. -In the case of insurance companies, the tax shall be as provided in Supplement G. (g) MUTUAL INVESTMENT COMPANIES. -In the case of mutual investment companies, as defined in Supplement Q, the tax shall be as provided in such Supplement. (h) EXEMPT CORPORATIONS.-For corporations exempt from taxa- tion under this title, see section 101. (i) TAX ON PERSONAL HOLDING COMPANIEs.-For surtax on per- sonal holding companies, see Title IA. (j) IMPROPER ACCUMULATION OF SURPLus. - For surtax on cor- porations which accumulate surplus to avoid surtax on shareholders, see section 102. SEC. 15. CORPORATE TAXES EFFECTIVE FOR TWO TAXABLE YEARS. The taxes imposed by section 13, section 14 (except subsection (e) (2)), Supplement G, or Supplement Q, of this Act, or by section 13, section 14, or Supplement G of the Revenue Act of 1936, shall not apply to any taxable year beginning after December 31, 1939. Part II-Computation of Net Income SEC. 21 . NET INCOME. "Net income" means the gross income computed under section 22 less the deductions allowed by section 23. For definition of "adjusted net income", see section 13 (a); for definition of "special class net income", see section 14 (a). SEC. 22 . GROSS INCOME. (a) GENERAL DEFINITION.- "Gross income" includes gains, profits, and income derived from salaries, wages, or compensation for per- sonal service, of whatever kind and in whatever form paid, or from professions, vocations, trades, businesses, commerce, or sales, or deal- ings in property, whether real or personal, growing out of the ownership or use of or interest in such property; also from interest, rent dividends, securities, or the transaction of any business carried on for gain or profit, or gains or profits and income derived from any source whatever. In the case of Presidents of the United States and judges of courts of the United States taking office after June 6, 1932, the compensation received as such shall be included in gross income; and all Acts fixing the compensation of such Presidents and judges are hereby amended accordingly. Special classes of corporations. Banks. Post, p. 484. China Trade Act corporations. Deriving income from United States possession. Post, p. 532 . Foreign corpora- tions. Engaged in busi- ness, etc., within United States. Not so engaged, etc. Post, p. 530 . Insurance compa- nies. Post, p. 522 . Mutual investment companies. Post, p. 552 . Exempt corpora- tions. Post, p. 480. Personal holding companies. Post, p. 557. Improper accumula- tion of surplus. Post, p. 483 . Corporate taxes ef- fective for two taxable years. Ante, pp. 455, 456; post, pp. 522, 552. 49 Stat. 1655, 1710. 26 U. S. C., Supp. III, § 13, 13a, 201 -207. Computation of net Income. Net income. Definitions. Post, p . 460; ante, pp. 455-456. Gross income. General definition. Compensation of Presidents, United States judges. 52 STAT.] 457
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