{"identifier":"/us/usc/t26/s887","title":26,"num":"\u00a7\u202f887.","heading":"Imposition of tax on gross transportation income of nonresident aliens and foreign corporations","text":"\u00a7\u202f887.\nImposition of tax on gross transportation income of nonresident aliens and foreign corporations\n(a)\nImposition of tax\nIn 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\u2019s or corporation\u2019s United States source gross transportation income for such taxable year.\n(b)\nUnited States source gross transportation income\n(1)\nIn general\nExcept as provided in paragraphs (2) and (3), the term \u201cUnited States source gross transportation income\u201d 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.\n(2)\nException for certain income effectively connected with business in the United States\nThe term \u201cUnited States source gross transportation income\u201d shall not include any income taxable under section 871(b) or 882.\n(3)\nException for certain income taxable in possessions\nThe term \u201cUnited States source gross transportation income\u201d 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.\n(4)\nDetermination of effectively connected income\nFor purposes of this chapter, United States source gross transportation income of any taxpayer shall not be treated as effectively connected with the conduct of a trade or business in the United States unless\u2014\n(A) the taxpayer has a fixed place of business in the United States involved in the earning of United States source gross transportation income, and\n(B) substantially all of the United States source gross transportation income (determined without regard to paragraph (2)) of the taxpayer is attributable to regularly scheduled transportation (or, in the case of income from the leasing of a vessel or aircraft, is attributable to a fixed place of business in the United States).\n(c)\nCoordination with other provisions\nAny income taxable under this section shall not be taxable under section 871, 881, or 882.","url":"https://projectusc.org/usc/t26/s887.html","content":[{"t":"sec","id":"/us/usc/t26/s887","children":[{"t":"num","text":"\u00a7\u202f887."},{"t":"heading","text":"Imposition of tax on gross transportation income of nonresident aliens and foreign corporations"},{"t":"subsec","id":"/us/usc/t26/s887/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Imposition of tax"},{"t":"content","children":[{"t":"p","text":"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\u2019s or corporation\u2019s United States source gross transportation income for such taxable year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s887/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"United States source gross transportation income"},{"t":"para","id":"/us/usc/t26/s887/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Except as provided in paragraphs (2) and (3), the term \u201cUnited States source gross transportation income\u201d 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s887/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Exception for certain income effectively connected with business in the United States"},{"t":"content","children":[{"t":"p","text":"The term \u201cUnited States source gross transportation income\u201d shall not include any income taxable under section 871(b) or 882.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s887/b/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Exception for certain income taxable in possessions"},{"t":"content","children":[{"t":"p","text":"The term \u201cUnited States source gross transportation income\u201d 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s887/b/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Determination of effectively connected income"},{"t":"chapeau","text":"For purposes of this chapter, United States source gross transportation income of any taxpayer shall not be treated as effectively connected with the conduct of a trade or business in the United States unless\u2014"},{"t":"subpara","id":"/us/usc/t26/s887/b/4/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the taxpayer has a fixed place of business in the United States involved in the earning of United States source gross transportation income, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s887/b/4/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" substantially all of the United States source gross transportation income (determined without regard to paragraph (2)) of the taxpayer is attributable to regularly scheduled transportation (or, in the case of income from the leasing of a vessel or aircraft, is attributable to a fixed place of business in the United States).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s887/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Coordination with other provisions"},{"t":"content","children":[{"t":"p","text":"Any income taxable under this section shall not be taxable under section 871, 881, or 882.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}