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.
