Tax Exempt Corporations

Under Section 30 of NIRC:

Sec.         30.          Exemption from Tax on Corporation. – The following organizations shall not be taxed in respect to income received by them as such:

(A)       Labor, agricultural or horticultural organizations not organized principally for                profits.                        

(B)       Mutual savings bank not having a capital stock represented by shares, and                     cooperative bank without capital stock, organized and operated for mutual purposes     and without profit;

(C)       Cemetery company owned and operated exclusively for the benefit of its members;

(D)          Non-stock corporation or association organized and operated exclusively for religious, charitable, scientific, athletic, or cultural purposes, or rehabilitation of veterans, no part of its net income or asset shall belong or inure to the benefit of any member, organizer, officer or any specific person;

(F)      Business league, chamber of commerce, or board of trade, not organized for profit     and no part of the net income of which inures to the benefit of any private stockholder or individual;

(G)      Civic league or organization not organized for profit but operated exclusively for         the promotion of social welfare;

           (H)       A non-stock nonprofit educational institution;

(I)       Government educational institution;

(J)       Farmers or other mutual typhoon or fire insurance company, mutual ditch or irrigation company, mutual or cooperative telephone company, or like organizations of a purely local character, the income of which consists solely of assessments, dues, and fees collected from members for the sole purpose of meeting its expenses; and

(K)     Farmers, fruit growers, or like association organized and operated as a sales agent for the  purpose of marketing the products of its members and turning back them the proceeds of sales, less the necessary selling on the basis of the quantity of produced finished by them.

Note:     Notwithstanding the provisions in the preceding paragraphs;

(a)   the income of whatever kind and character of the foregoing               organizations;

(b)   from any of their properties, real or personal or;

(c)   from any of their activities conducted for profit;

(d)   regardless of the disposition made of such income;

(e)   shall be subject to corporation tax.