Further Ruling of Interest to Citizens Resident in the Far East The following telegram has been received by the American Consulate from the Department of State at May 22—With reference t" your telegram dated May 9, according to 4 statement by the Treasury Depart ment curned income as defined in the Revenue Act of 1926 under Section 209 which is received from sources without the United States by American citizens who are bond fide non residents of the United States for over six months of a taxable year, is exempt from income tax and a return is not required unless the net income, exclusive of finch exempt income, is in the case of a single person $1,500 or more, or in the cate of a married person $8,500 or more, or, in either ease, the gross income is' $5,000 or more, Memorandum following is a ruling by the Commissioner of Internal Revenue, Washington, D. C.
Section 213 (b) (14) of the Ro-venue Act of 1926 provides that there shall be excluded from grons income: in the ease of an individus citizen of the United States, a bond Fesident at the United States for ix" months during. the taxable received. from sources united" Stales if auch fconstiture earned. income.
Reetion 2 us "suck: me from gross income und The term "earned incom part of the compensation derived, by anal" services Which "represents a distribut Soeningy Vor, progky, rath If an individual citizen is a bond fide non-resident of the United States for more than six month during the taxable year he will be exempt from tax upon his income from sources without the United: States which constitute earned me come under Section 209. For the purpose of determining whether conipensation is from sources within or without the United States, the place where the serviced are pot-formed and not where the compen sation la paid is the controlling Income which is exempt from tax under Section 213 (b) (14). is not to be considered in det mining whether the taxpayer's gross income or net is sufficient to require a return. If the riving. with his wife he will be quired to file a return if hie not income (exclusive of under Section 213 (b) (14) is $1,500 or over or his gros income (ex clusive of such income) is $5,000 or over. If he is a married man living with his wife, a return should be filed if their aggregate net income (exclusive of income exempt under Section 218 (b) (14) is $5,500 oF over or their aggregate gro: (exclusive of such income) is $5,000 oF over. were the motor eycte division, thole riot guns, light automatic weapons being mounted in front of the operator who sat in the side coe. Behind them came the regular Police, all ranks which could be ox-cused from duty. Next in order came the Sikhs on foot, with rifles over the shoulder, while bringing up the rear were the Chinese constables. Last but not the. least were the Reserves, who, though Iaat in order, made just as good an ion pression as did those who preceded,
Text read from the printed page and cleaned; old type leaves the occasional error.