Taxes Due from T. J. Wolff Employees Savings & Loan Association

June 11, 1958 BIR RULING NO. 324-58 Mr. J. G. Madarang Attorney-At-Law Room 311-C Regina Bldg. Escolta, Manila S i r : In reply to your letter dated June 4, 1958, requesting information as to the taxes that may be due from your client, the T. J. Wolff Employees Savings & Loan Association, Inc., I have the honor to inform you that a mutual savings bank is exempt from income tax if it has no capital stock represented by shares; if its earnings, less only the expenses of operation, are distributed wholly among the depositors; and if, it does not serve the public in general but only its members. It is, however, subject to the corporate basic and additional residence taxes prescribed in Section 2 of Commonwealth Act No. 465, otherwise known as the Residence Tax Law, as amended by Republic Act No. 1503. Although the corporation is exempt from income tax, it is also required to keep a journal and a ledger in accordance with the provisions of the Bookkeeping Regulations. The said books should be presented to the Commissioner of Internal Revenue for approval and registration. cdti Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue