Tax Exemption of Any Corporation or Association Duly Organized in Accordance with the Provisions of Act No. 3425

June 24, 1960 BIR RULING NO. 265-60 Pilar Sugar Planters' Ass'n., Inc. Pilar Sugar Central Pres. Roxas, Capiz Attention : Atty . Alberto A . Villarruz Gentlemen : With reference to your query dated June 22, 1960, I have the honor to inform you that any corporation or association duly organized in accordance with the provisions of Act No. 3425, otherwise known as "The Cooperative Marketing Law", shall not be subject to the payment of the merchant's sales tax, income tax, and all other percentage taxes (which include the 2% percentage tax imposed by Section 189 of the Tax Code) of whatever nature and description, pursuant to Section 48 of Act No. 3425, as amended by Republic Act No. 702. To be exempt from taxes, as above-mentioned, the corporation or association incorporated under the said law must be operated primarily for the mutual benefit of the members thereof, as producers , and should aim to promote, foster, and encourage the intelligent and orderly marketing of agricultural products between producers and consumers as direct as can be efficiently done, and to stabilize the marketing of agricultural products. Please be informed further that BIR Ruling No. 256, Series of 1959, is still enforced by this bureau. cdta Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue