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.
United States source gross transportation income
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.
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.
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.
Determination of effectively connected income
Coordination with other provisions
Any income taxable under this section shall not be taxable under section 871, 881, or 882.
Pub. L. 99–514, title XII, § 1212(b)(1)100 Stat. 2537Pub. L. 100–647, title I, § 1012(e)(6)102 Stat. 3500Pub. L. 101–239, title VII, § 7811(i)(8)(A)103 Stat. 2410(Added , , ; amended , , ; , (B), (9), , , 2411.)
Editorial Notes
Amendments
Pub. L. 101–239, § 7811(i)(8)(B)1989—Subsec. (b)(1). , substituted “paragraphs (2) and (3)” for “paragraph (2)”.
Pub. L. 101–239, § 7811(i)(8)(A)Subsec. (b)(3). , added par. (3). Former par. (3) redesignated (4).
Pub. L. 101–239, § 7811(i)(8)(A)Subsec. (b)(4). , (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).
Pub. L. 100–6471988—Subsec. (b)(1). 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.”
Statutory Notes and Related Subsidiaries
Effective Date of 1989 Amendment
Pub. L. 101–239Pub. L. 100–647section 7817 of Pub. L. 101–239section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, , to which such amendment relates, see , set out as a note under .
Effective Date of 1988 Amendment
Pub. L. 100–647Pub. L. 99–514section 1019(a) of Pub. L. 100–647section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under .
Effective Date
section 1212(f) of Pub. L. 99–514section 863 of this titleSection applicable to taxable years beginning after , see , set out as an Effective Date of 1986 Amendment note under .
Pub. L. 99–514Applicability of Certain Amendments by in Relation to Treaty Obligations of United States
section 1212(b)(1) of Pub. L. 99–514Pub. L. 100–647Pub. L. 99–514Pub. L. 100–647section 861 of this titleFor nonapplication of amendment by (enacting this section) to the extent application of such amendment would be contrary to any treaty obligation of the United States in effect on , with provision that for such purposes any amendment by title I of be treated as if it had been included in the provision of to which such amendment relates, see section 1012(aa)(3), (4) of , set out as a note under .