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TITLE 26-INTERNAL REVENUE CODE sources within the United States, as deter- mined under the provisions of this part, for the 3-year period ending with the close of the taxable year of such individual or such corporation preceding the payment of such interest, or for such part of such period as may be applicable, (C) interest received from a foreign corpo- ration (other than interest paid or credited by a domestic branch of a foreign corpora- tion, if such branch is engaged in the com- mercial banking business), when it is shown to the satisfaction of the Secretary that less than 50 percent of the gross income from all sources of such foreign corporation for the 3-year period ending with the close of its taxable year preceding the payment of such interest (or for such part of such period as the corporation has been in exis- tence) was effectively connected with the conduct of a trade or business within the United States, (D) in the case of interest received from a foreign corporation (other than interest paid or credited by a domestic branch of a foreign corporation, if such branch is en- gaged in the commercial banking business), 50 percent or more of the gross income of which from all sources for the 3-year period ending with the close of its taxable year preceding the payment of such interest (or for such part of such period as the corpora- tion has been in existence) was effectively connected with the conduct of a trade or business within the United States, an amount of such interest which bears the same ratio to such interest as the gross income of such foreign corporation for such period which was not effectively connected with the conduct of a trade or busines3 within the United States bears to its gross income from all sources, (E) income derived by a foreign central bank of issue from bankers' acceptances, and (F) interest on deposits with a foreign branch of a domestic corporation or a do- mestic partnership, if such branch is en- gaged in the commercial banking business. (G) interest on a debt obligation which was part of an issue with respect to which an election has been made under subsection (c) of section 4912 (as in effect before July 1, 1974) and which, when issued (or treated as issued under subsection (c)(2) of such section), had a maturity not exceeding 15 years and, when issued, was purchased by one or more underwriters with a view to dis- tribution through resale, but only with re- spect to interest attributable to periods after the date of such election, and (H) interest on a debt obligation which was part of an issue which- (I) was part of an issue outstanding on April 1, 1971, (ii) was guaranteed by a United States person, (iii) was treated under chapter 41 as a debt obligation of a foreign obligor, (iv) as of June 30, 1974, had a maturity of not more than 15 years, and (v) when issued, was purchased by one or more underwriters for the purpose of distribution through resale. (2) Dividends The amount received as dividends- (A) from a domestic corporation other than a corporation which has an election in effect under section 936, and other than a corporation less than 20 percent of whose gross income is shown to the satisfaction of the Secretary to have been derived from sources within the United States, as deter- mined under the provisions of this part, for the 3-year period ending with the close of the taxable year of such corporation pre- ceding the declaration of such dividends (or for such part of such period as the corpora- tion has been in existence), or (B) from a foreign corporation unless less than 50 percent of the gross income from all sources of such foreign corporation for the 3-year period ending with the close of its taxable year preceding the declaration of such dividends (or for such part of such period as the corporation has been in exis- tence) was effectively connected with the conduct of a trade or business within the United States; but only in an amount which bears the same ratio to such dividends as the gross income of the corporation for such period which was effectively connected with the conduct of a trade or business within the United States bears to its gross income from all sources; but dividends (other than dividends for which a deduction is allowable under section 245(b)) from a foreign corporation shall, for purposes of subpart A of part III (relating to foreign tax credit), be treated as income from sources without the United States to the extent (and only to the extent) exceeding the amount which is 100/85ths of the amount of the deduction allowable under section 245 in respect of such dividends, or (C) from a foreign corporation to the extent that such amount is required by sec- tion 243(d) (relating to certain dividends from foreign corporations) to be treated as dividends from a domestic corporation which is subject to taxation under this chapter, and to such extent subparagraph (B) shell not apply to such amount. (D) from a DISC or former DISC (as de- fined in section 992(a)) except to the extent attributable (as determined under regula- tions prescribed by the Secretary) to quali- fied export receipts described in section 993(a)(1) (other than interest and gains de- scribed in section 995(b)(1)). (3) Personal services Compensation for labor or personal services performed in the United States; except that compensation for labor or services performed in the United States shall not be deemed to be income from sources within the United States if- (A) the labor or services are performed by a nonresident alien individual temporarily present in the United States for a period or periods not exceeding a total of 90 days during the taxable year, § 861 Page 555