Note: Sections 253, 254 and 255 were amended by P.L. 99-239 of January 14, 1986. Following is the original text of these Compact sections:

Section 253

(a) income taxes imposed by the Government of the United States upon fixed or determinable annual income; and

Note: This previous section 253(a) is not applicable under P.L. 99-239, section 402 (a).

Section 255

Where not otherwise manifestly inconsistent with the intent of this Compact, provisions in the United States Internal Revenue Code that are applicable to possessions of the United States as of January 1, 1980 shall be treated as applying to the Marshall Islands and the Federated States of Micronesia. If such provisions of the Internal Revenue Code are amended, modified or repealed after that date, such provisions shall continue in effect as to the Marshall Islands and the Federated States of Micronesia for a period of two years during which time the Government of the United States and the Governments of the Marshall Islands and the Federated States of Micronesia shall negotiate an agreement which shall provide benefits substantively equivalent to those which obtained under such provisions.

Note: Previous section 255 was amended by P.L. 99-239, section 404.

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