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TITLE 26-INTERNAL REVENUE CODE EFFECTIVE DATE OF 1966 AMENDMENT Section 107(b) of Pub. L. 89-809 provided that: "The amendment made by this section [amending subsec. (d) of this section] shall apply with respect to taxable years beginning after December 31, 1966." CROSS REFERENCES Consolidated returns, definition of "includible corpo- ration" as not meaning corporation entitled to the benefits of this section, see section 1504 of this title. Income from sources within the United States, see section 861 of this title. Standard deduction, citizen entitled to benefits of this section ineligible, see section 142 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 43, 48, 142, 153, 901, 957, 1302, 1402, 1504, 6091 of this title; title 42 sec- tion 411; title 48 section 14211. § 932. Citizens of possessions of the United States (a) General rule Any individual who is a citizen of any posses- sion of the United States (but not otherwise a citizen of the United States) and who is not a resident of the United States shall be subject to taxation under this subtitle in the same manner and subject to the same conditions as in the case of a nonresident alien individual. This section shall have no application in the case of a citizen of Puerto Rico or Guam. (b) Virgin Islands Nothing in this section shall be construed to alter or amend the Act entitled "An Act making appropriations for the naval service for the fiscal year ending June 30, 1922, and for other purposes", approved July 12, 1921 (48 U.S.C. 1397), relating to the imposition of income taxes in the Virgin Islands of the United States. (c) Guam For provisions relating to the Individual income tax In the case of Guam, see section 935 and 7654; see also sec- tions 30 and 31 of the Act of August 1, 1950 (48 U.S.C., sees. 1421h and 1421i). (Aug. 16, 1954, ch. 736, 68A Stat. 292; Nov. 13, 1966, Pub. L. 89-809, title I, § 103(m), 80 Stat. 1554; Oct. 31, 1972, Pub. L. 92-606, § 1(f)(2), (3), 86 Stat. 1497.) AMENDMENTS 1972-Subsec. (a). Pub. L. 92-606, § l(f)(2), substitut- ed "Puerto Rico or Guam" for "Puerto Rico". Subsec. (c). Pub. L. 92-606, § l(f)(3), added reference to sections 935 and 7654 of this title. 1966-Subsec. (a). Pub. L. 89-809 substituted "in the same manner and subject to the same conditions as in the case of a nonresident alien individual" for "only as to income derived from sources within the United States, and in such case the tax shall be computed and paid in the same manner and subject to the same con- ditions as in the case of other persons who are taxable only as to income derived from such sources" follow- ing "this subtitle". EFFECTIVE DATE OF 1972 AMENDMENT Amendment by Pub. L. 92-606 applicable with re- spect to taxable years beginning after Dec. 31, 1972, see section 2 of Pub. L. 92-606, set out in part as an Ef- fective Date of 1972 Amendment note under section 935 of this title. EFFECTIVE DATE OF 1966 AMENDMENT mendment by Pub. L. 89-809 applicable with re- spect to taxable years beginning after Dec. 31, 1966, see section 103(n)(1) of Pub. L. 89-809, set out as an Effective Date of 1966 Amendment note under section 871 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 48, 1402 of this title; title 42 section 411. § 933. Income from sources within Puerto Rico The following items shall not be included in gross income and shall be exempt from tax- ation under this subtitle: (1) Resident of Puerto Rico for entire taxable year In the case of an individual who is a bona fide resident of Puerto Rico during the entire taxable year, income derived from sources within Puerto Rico (except amounts received for services performed as an employee of the United States or any agency thereof); but such individual shall not be allowed as a de- duction from his gross income any deductions (other than the deduction under section 151, relating to personal exemptions) properly al- locable to or chargeable against amounts ex- cluded from gross income under this para- graph. (2) Taxable year of change of residence from Puerto Rico In the case of an individual citizen of the United States who has been a bona fide resi- dent of Puerto Rico for a period of at least 2 years before the date on which he changes his residence from Puerto Rico, income de- rived from sources therein (except amounts received for services performed as an employ- ee of the United States or any agency there- of) which is attributable to that part of such period of Puerto Rican residence before such date; but such individual shall not be allowed as a deduction from his gross income any de- ductions (other than the deduction for per- sonal exemptions under section 151) properly allocable to or chargeable against amounts excluded from gross income under this para- graph. (Aug. 16, 1954, ch. 736, 68A Stat. 293.) CROSS REFERENCES Self-employment income, resident of Puerto Rico to compute his net earnings without regard to this sec- tion, see section 1402 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 48, 957, 1402, 6091, 7655 of this title; title 42 section 411. § 934. Limitation on reduction in income tax liability incurred to the Virgin Islands (a) General rule Tax liability incurred to the Virgin Islands pursuant to this subtitle, as made applicable in the Virgin Islands by the Act entitled "An Act making appropriations for the naval service for the fiscal year ending June 30, 1922, and for other purposes", approved July 12, 1921 (48 U.S.C. 1397), or pursuant to section 28(a) of the Revised Organic Act of the Virgin Islands, ap- proved July 22, 1954 (48 U.S.C. 1642), shall not be reduced or remitted in any way, directly or indirectly, whether by grant, subsidy, or other similar payment, by any law enacted in the § 932 Page 596