Section 11
SEC. 11. (a) There shall not be taxed under this Law any income received by any— First. Labor, agricultural, or horticultural organization. Second. 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. Third. Fraternal beneficiary society, order or association, operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating, under the lodge system, and providing for the payment of life, sick, accident, or other benefits to the members of such society, order, or association or their dependents. Fourth. Loan and building association organized under the Corporation Law. Fifth. Cemetery company owned and operated exclusively for the benefit of its members. Sixth. Corporation or association organized and operated exclusively for religious, charitable, scientific, or educational purposes, no part of the net' income of which inures to the benefit of any private stockholder or individual: Provided, however, That the income of whatever kind and character from any of its properties, real or personal, except income expressly exempted by this Law, shall be liable to the tax imposed under this chapter. Seventh. Business league, chamber of commerce, or board of trade, not organized for the profit and no part of the net income of which inures to the benefit of any private stockholder or individual. Eighth. Civic league or organization not organized for profit but operated exclusively for the promotion of social welfare. Ninth. Club organized and operated exclusively for pleasure, recreation, and other nonprolitable purposes, no part of the net income of which inures to the benefit of any private stockholder or member. Tenth. 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. Eleventh. 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 furnished by them. Twelfth. Corporation or association organized for the exclusive purpose of holding title to property, collecting income therefrom, and turning over the entire amount thereof, less expenses, to an organization which itself is exempt from the tax imposed by this law; or Thirteenth. Joint-stock land bank as to income derived -from bonds or debentures of other joint-stock land bank or any land bank belonging to such joint-stock land bank. (b) There shall not be taxed under this Law any income -derived from any public utility or from the exercise of any essential governmental function accruing to the government of the Philippine Islands or of any political subdivision of the Philippine Islands: Provided, That whenever any -province, city or any political subdivision of a province has, prior to the passage of this Law, entered in good faith into a contract with any person or corporation, the object and purpose of which is to acquire, construct, operate, or maintain a public utility, no tax shall be levied under the provisions of this Law upon the income derived from the operation of such public utility, so far as the payment thereof will impose a loss or burden upon such province, city or a political subdivision of a province; but this provision is not intended to confer upon such person or corporation any financial gain or exemption or to relieve such person or corporation from the payment of a tax as provided for in this Law upon the part or portion of the said income to which such person or corporation shall be entitled under such contract. DEDUCTIONS.