Title 26 — Internal Revenue Code
Part V · Chapter 1 — Normal Taxes and Surtaxes
§ 638. Continental shelf areas
Statutory text
For purposes of applying the provisions of this chapter (including sections 861(a)(3) and 862(a)(3) in the case of the performance of personal services) with respect to mines, oil and gas wells, and other natural deposits—
the term “United States” when used in a geographical sense includes the seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the United States and over which the United States has exclusive rights, in accordance with international law, with respect to the exploration and exploitation of natural resources; and
the terms “foreign country” and “possession of the United States” when used in a geographical sense include the seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the foreign country or such possession and over which the foreign country (or the United States in case of such possession) has exclusive rights, in accordance with international law, with respect to the exploration and exploitation of natural resources, but this paragraph shall apply in the case of a foreign country only if it exercises, directly or indirectly, taxing jurisdiction with respect to such exploration or exploitation.
No foreign country shall, by reason of the application of this section, be treated as a country contiguous to the United States.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Tax Reform Act of 1969
Pub. L. 91–172 title V § 505(a) · 83 Stat. 487
Enacted · 26 U.S.C. § 638
(Added Pub. L. 91–172, title V, § 505(a), Dec. 30, 1969, 83 Stat. 634.)
Source evidence
Code source credit
(Added Pub. L. 91–172, title V, § 505(a), Dec. 30, 1969, 83 Stat. 634.)Enacted provision · exact public law section
(a) In General.— Subchapter I of chapter 1 (relating to natural 68A Stat. 207; Ante, p. 630. 26 USC 611–636. resources) is amended by adding after part IV (added by section 503 of this Act) the following new part: “PART V— CONTINENTAL SHELF AREAS “Sec. 638. Continental shelf areas. “SEC. 638. CONTINENTAL SHELF AREAS. “For purposes of applying the provisions of this chapter (including 68A Stat. 276; 80 Stat. 1543. 26 USC 861, 862. sections 861(a)(3) and 862(a)(3) in the case of the performance of personal services) with respect to mines, oil and gas wells, and other natural deposits— “(1) the term ‘United States’ when used in a geographical sense includes the seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the United States and over which the United States has exclusive rights, in accordance with international law, with respect to the exploration and exploitation of natural resources; and “(2) the terms ‘foreign country’ and ‘possession of the United States’ when used in a geographical sense include the seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the foreign country or such possession and over which the foreign country (or the United States in case of such possession) has exclusive rights, in accordance with international law, with respect to the exploration and exploitation of natural resources, but this paragraph shall apply in the case of a foreign country only if it exercises, directly or indirectly, taxing jurisdiction with respect to such exploration or exploitation. No foreign country shall, by reason of the application of this section, be treated as a country contiguous to the United States.”
1 of 1 references resolved to an enrolled provision
Credits
(Added Pub. L. 91–172, title V, § 505(a), , 83 Stat. 634.)