Rev. Rul. 76-536, 1976-2 CB 224, IRC Sec(s). 901 Headnote: Rev. Rul. 76-536, 1976-2 CB 224 -- IRC Sec. 901 Reference(s): Code Sec. 901; Reg ยง 1.901-1 Foreign tax credit; Irish Wealth Tax. Tax imposed by the Irish Wealth Tax Act of 1975 is not an income tax for which credit is allowable under section 901 of the Code. Full Text: Advice has been requested whether tax imposed by the Irish Wealth Tax Act of 1975 (Act) is an income tax for which credit is allowable under section 901 of the Internal Revenue Code of 1954. The taxpayer is a United States citizen residing in Ireland. The taxpayer is, pursuant to the Act, subject to tax on worldwide wealth. The Act imposes a flat rate of tax on the net market value of taxable wealth less allowable exclusions. Taxable wealth, as defined by the Act, is basically the net value of all the property to which the taxpayer is beneficially entitled in possession. The net market value of taxable wealth is arrived at by reducing the market value by the debts and encumbrances attributable to such property. Section 901(a) of the Code provides, in part, that if the taxpayer chooses to have the benefits of subpart A of chapter 1, the tax imposed by chapter 1 shall, subject to the applicable limitations of section 904, be credited with the amounts provided in the applicable paragraph of section 901(b). Section 901(b) of the Code provides, in part, that, subject to the applicable limitations of section 904, in the case of a citizen of the United States, the amount of any income tax paid or accrued during the taxable year to any foreign country shall be allowed as a credit under section 901(a). Whether a foreign tax can be considered an income tax for purposes of section 901 of the Code is based on whether such tax is considered an income tax under United States standards thereof. Biddle v. Commissioner, 302 U.S. 573 (1938), 1938-1 C.B. 309. The Act levies a tax on the taxpayer's holdings of property, as opposed to his income. Accordingly, the amount of tax paid to the Government of Ireland pursuant to the Act is not an income tax within the United States concept thereof, and is not a creditable tax for purposes of section 901 of the Code.