POLICIES ISSUED BY FOREIGN INSURERS.

SEC. 804. POLICIES ISSUED BY FOREIGN INSURERS. (a) Payment of Tax by Return.— (1) Section 4374 (relating to affixing of stamps) is amended by adding at the end thereof the following new sentence: “Notwithstanding the preceding sentence, the Secretary or his delegate may, by regulations, provide that the tax imposed by section 4371 shall be paid on the basis of a return.” (2) The heading for section 4374 is amended to read as follows: “SEC. 4374. PAYMENT OF TAX.” (3) The table of sections for subchapter D of chapter 34 is amended by striking out the item relating to section 4374 and inserting in lieu thereof the following: “Sec. 4374. Payment of tax.” (b) Tax Imposed on Premiums Paid.— Section 4371 (relating to tax on policies issued by foreign insurers) is amended by adding at the end thereof the following new sentence: “If the tax imposed by this section is paid on the basis of a return under regulations prescribed under section 4374, the tax under paragraphs (1), (2), and (3) shall be computed on the premium paid in lieu of the premium charged.” (c) Effective Dates.—The amendments made by subsection (a) shall take effect on July 1, 1965. The amendments made by subsection (b) shall apply with respect to policies, bonds, and contracts with respect to which the tax imposed by section 4371 of the Code is required to be paid on the basis of a return.