Internal Revenue Code (Title 26 U.S.C.)

26 U.S.C. § 638

Continental shelf areas

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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—

# (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.

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Nearby sections (25 sections)
  1. 611 · Allowance of deduction for depletion
  2. 612 · Basis for cost depletion
  3. 613 · Percentage depletion
  4. 613A · Limitations on percentage depletion in case of oil and gas wells
  5. 614 · Definition of property
  6. 615 · [§615. Repealed. Pub. L. 94–455, title XIX, §1901(a)(88), Oct. 4,…
  7. 616 · Development expenditures
  8. 617 · Deduction and recapture of certain mining exploration expenditures
  9. 621 · [§621. Repealed. Pub. L. 101–508, title XI, §11801(a)(28), Nov.…
  10. 631 · Gain or loss in the case of timber, coal, or domestic iron ore
  11. 632 · [§632. Repealed. Pub. L. 94–455, title XIX, §1901(a)(90), Oct. 4,…
  12. 636 · Income tax treatment of mineral production payments
  13. 638 · Continental shelf areas
  14. 641 · Imposition of tax
  15. 642 · Special rules for credits and deductions
  16. 643 · Definitions applicable to subparts A, B, C, and D
  17. 644 · Taxable year of trusts
  18. 645 · Certain revocable trusts treated as part of estate
  19. 646 · Tax treatment of electing Alaska Native Settlement Trusts
  20. 651 · Deduction for trusts distributing current income only
  21. 652 · Inclusion of amounts in gross income of beneficiaries of trusts…
  22. 661 · Deduction for estates and trusts accumulating income or…
  23. 662 · Inclusion of amounts in gross income of beneficiaries of estates…
  24. 663 · Special rules applicable to sections 661 and 662
  25. 664 · Charitable remainder trusts
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