Nature of Tax Exemption or transaction are exempted, (g) Mutual savings bank would be due to it and in this (b)
would be due to it and in this
(1) Exemption of taxation is a
mere personal privilege of the
grantee.
(2) It is generally revocable by
the government unless the
exemption is founded on a
contract which is protected
from impairment.
(3) It implies a waiver on the
part of the Government of its
right to collect what otherwise
would be due to it and in this
sense, is prejudicial thereto.
(4) It is not necessarily
discriminatory so long as the
exemption has a reasonable
foundation or rational basis.
Kinds of Tax Exemption
(1) As to manner of creation:
(a) Express or affirmative
exemption - when certain
persons, property or
transactions are, by express
provision, exempted from all or
certain taxes, either entirely or
in part.
(b) Implied exemption or
exemption by omission - this
occurs when a tax is levied on
certain classes of persons,
properties, or transactions
without mentioning the other
classes.
(2) As to scope or extent:
(a) Total exemption -
when certain persons, property,
or transactions are exempted,
expressly or impliedly, from all
taxes.
(b) Partial exemption -
when certain persons, property,
(b) Impersonal - those
expressly or impliedly, from
certain taxes, either entirely or
in part.
(3) As to object:
(a) Personal - those
granted directly in favor of
such persons as are within the
contemplation of the law
granting the exemption
(b) Impersonal - those
granted directly in favor of a
certain class of property.
Exemption provided for in the
constitution
(1) From property tax
(2) From taxes and duties
Exemptions provided for in the
Tax Code
(1) From income tax
(a) Labor, agricultural, or
horticultural organization not
organized principally for profit;
(b) Cemetery
company-owned and operated
exclusively for the benefit of its
members;
(c) Non-stock corporation
or association organized and
operated exclusively for religious,
charitable, scientific, athletic, or
cultural purposes;
(d) Business league,
chamber of commerce or board
of trade not organized for profit;
(e) Civic league or
organization not organized for
profit;
(f) Non-stock and
non-profit educational institution,
and government educational
institution;
legacy by the fiduciary heir or
not having a capital stock
(h) General professional
partnership.
(2) From estate tax
(a) The merger of the
usufruct in the owner of the
naked title;
(b) Transmission or
delivery of the inheritance or
legacy by the fiduciary heir or
legatee to the fideicommissary;
(c) Transmission from the
first heir;
(d) All bequests to social
welfare, cultural and charitable
subject to certain condition.
(3) From donor’s tax
(a) Gifts made on account
of marriage by parents to each of
their legitimate;
(b) Gifts made to or for the
use of the national government
or any entity created by any of its
agencies;
(c) Gifts in favor of
educational and/or charitable,
religious, cultural or social
welfare corporations.
Nature of Tax Exemption
(1) Exemption of taxation is a
mere personal privilege of the
grantee.
(2) It is generally revocable by
the government unless the
exemption is founded on a
contract which is protected
from impairment.
(3) It implies a waiver on the
part of the Government of its
right to collect what otherwise
sense, is prejudicial thereto.
(4) It is not necessarily
discriminatory so long as the
exemption has a reasonable
foundation or rational basis.
Kinds of Tax Exemption
(1) As to manner of creation:
(a) Express or affirmative
exemption - when certain
persons, property or
transactions are, by express
provision, exempted from all or
certain taxes, either entirely or
in part.
(b) Implied exemption or
exemption by omission - this
occurs when a tax is levied on
certain classes of persons,
properties, or transactions
without mentioning the other
classes.
(2) As to scope or extent:
(a) Total exemption -
when certain persons, property,
or transactions are exempted,
expressly or impliedly, from all
taxes.
(b) Partial exemption -
when certain persons, property,
or transaction are exempted,
expressly or impliedly, from
certain taxes, either entirely or
in part.
(3) As to object:
(a) Personal - those
granted directly in favor of
such persons as are within the
contemplation of the law
granting the exemption
granted directly in favor of a
certain class of property.
Exemption provided for in the
constitution
(1) From property tax
(2) From taxes and duties
Exemptions provided for in the
Tax Code
(1) From income tax
(a) Labor, agricultural, or
horticultural organization not
organized principally for profit;
(b) Cemetery
company-owned and operated
exclusively for the benefit of its
members;
(c) Non-stock corporation
or association organized and
operated exclusively for religious,
charitable, scientific, athletic, or
cultural purposes;
(d) Business league,
chamber of commerce or board
of trade not organized for profit;
(e) Civic league or
organization not organized for
profit;
(f) Non-stock and
non-profit educational institution,
and government educational
institution;
(g) Mutual savings bank
not having a capital stock
(h) General professional
partnership.
(2) From estate tax
(a) The merger of the
usufruct in the owner of the
naked title;
(b) Transmission or
delivery of the inheritance or
legatee to the fideicommissary;
(c) Transmission from the
first heir;
(d) All bequests to social
welfare, cultural and charitable
subject to certain condition.
(3) From donor’s tax
(a) Gifts made on account
of marriage by parents to each of
their legitimate;
(b) Gifts made to or for the
use of the national government
or any entity created by any of its
agencies;
(c) Gifts in favor of
educational and/or charitable,
religious, cultural or social
welfare corporations.
Nature of Tax Exemption
(1) Exemption of taxation is a
mere personal privilege of the
grantee.
(2) It is generally revocable by
the government unless the
exemption is founded on a
contract which is protected
from impairment.
(3) It implies a waiver on the
part of the Government of its
right to collect what otherwise
would be due to it and in this
sense, is prejudicial thereto.
(4) It is not necessarily
discriminatory so long as the
exemption has a reasonable
foundation or rational basis.
Kinds of Tax Exemption
(1) As to manner of creation:
 (a) Express or affirmative
exemption - when certain
persons, property or
transactions are, by express
provision, exempted from all or
certain taxes, either entirely or
in part.
(b) Implied exemption or
exemption by omission - this
occurs when a tax
(c) is levied on certain
classes of persons, properties,
or transactions without
mentioning the other classes.
(2) As to scope or extent:
(a) Total exemption -
when certain persons, property,
or transactions are exempted,
expressly or impliedly, from all
taxes.
(b) Partial exemption -
when certain persons, property,
or transaction are exempted,
expressly or impliedly, from
certain taxes, either entirely or
in part.
(3) As to object:
(a) Personal - those
granted directly in favor of
such persons as are within the
contemplation of the law
granting the exemption
(b) Impersonal - those
granted directly in favor of a
certain class of property.
Exemption provided for in the
constitution
(1) From property tax
(2) From taxes and duties
Exemptions provided for in the
Tax Code
(1)From income tax
(a) Labor, agricultural, or (b) Gifts made to or for the
horticultural organization not use of the national government
organized principally for profit; or any entity created by any of its
agencies;
(b) Cemetery
company-owned and operated (c) Gifts in favor of
exclusively for the benefit of its educational and/or charitable,
members; religious, cultural or social
welfare corporations.
(c) Non-stock corporation
or association organized and
operated exclusively for religious,
charitable, scientific, athletic, or
cultural purposes;
(d) Business league,
chamber of commerce or board
of trade not organized for profit;
(e) Civic league or
organization not organized for
profit;
(f) Non-stock and
non-profit educational institution,
and government educational
institution;
(g) Mutual savings bank
not having a capital stock
(h) General professional
partnership.
(2) From estate tax
(a) The merger of the
usufruct in the owner of the
naked title;
(b) Transmission or
delivery of the inheritance or
legacy by the fiduciary heir or
legatee to the fideicommissary;
(c) Transmission from the
first heir;
(d) All bequests to social
welfare, cultural and charitable
subject to certain condition.
(3) From donor’s tax
(a) Gifts made on account
of marriage by parents to each of
their legitimate;