(a) Imposition of tax In the case of any nonresident alien individual or foreign corporation, there is hereby imposed for each taxable year a tax equal to 4 percent of such individual’s or corporation’s United States source gross transportation income for such taxable year.
(b) United States source gross transportation income
(1) In general Except as provided in paragraphs (2) and (3), the term “United States source gross transportation income” means any gross income which is transportation income (as defined in section 863(c)(3)) to the extent such income is treated as from sources in the United States under section 863(c)(2). To the extent provided in regulations, such term does not include any income of a kind to which an exemption under paragraph (1) or (2) of section 883(a) would not apply.
Amended 1988, 1989
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7811(i)(8)(B), substituted “paragraphs (2) and (3)” for “paragraph (2)”.
- 1988 Pub. L. 100-647 Pub. L. 100–647 substituted “under section 863(c)(2)” for “under section 863(c)” and inserted at end “To the extent provided in regulations, such term does not include any income of a kind to which an exemption under paragraph (1) or (2) of section 883(a) would not apply.”
Cited by 1
(2) Exception for certain income effectively connected with business in the United States The term “United States source gross transportation income” shall not include any income taxable under section 871(b) or 882.
Cited by 2
(3) Exception for certain income taxable in possessions The term “United States source gross transportation income” does not include any income taxable in a possession of the United States under the provisions of this title as made applicable in such possession.
Amended 1989
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7811(i)(8)(A), added par. (3). Former par. (3) redesignated (4).
Cited by 1
(4) Determination of effectively connected income For purposes of this chapter, United States source gross transportation income of any taxpayer shall not be treated as effectively connected with the conduct of a trade or business in the United States unless—
Amended 1989
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7811(i)(8)(A), (9), redesignated former par. (3) as (4) and substituted “United States source gross transportation income” for “transportation income” in introductory provisions and in subpar. (A).
(A) the taxpayer has a fixed place of business in the United States involved in the earning of United States source gross transportation income, and
(B) substantially all of the United States source gross transportation income (determined without regard to paragraph (2)) of the taxpayer is attributable to regularly scheduled transportation (or, in the case of income from the leasing of a vessel or aircraft, is attributable to a fixed place of business in the United States).
(c) Coordination with other provisions Any income taxable under this section shall not be taxable under section 871, 881, or 882.