Title II — TAX ON INCOME
accident, or other benefits exclusively to the members of such society,
order, or association, or nonstock corporation or their dependents;
(D)
Cemetery company owned and operated exclusively for the benefit of its
members;
(E)
Nonstock corporation or association organized and operated exclusively
for religious, charitable, scientific, athletic, or cultural purposes, or for the
rehabilitation of veterans, no part of its net income or asset shall belong
to 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 nonstock and 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
organization 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 to them the proceeds of sales, less the necessary selling
expenses on the basis of the quantity of produce finished by them.
Notwithstanding the provisions in the preceding paragraphs, the income of
whatever kind and character of the foregoing organizations from any of their
properties, real or personal, or from any of their activities conducted for profit
regardless of the disposition made of such income, shall be subject to tax
imposed under this Code.
CHAPTER V. COMPUTATION OF TAXABLE INCOME
SEC. 31. Taxable Income Defined. — The term ‘taxable income’ means the
pertinent items of gross income specified in this Code, less deductions, if any,
authorized for such types of income by this Code or other special laws.18
18
As amended by Section 8 of the TRAIN Law. Personal and additional exemptions were
removed.
38
Isla Lipana & Co., the Philippine member firm of the PwC network
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