Prohibition against taxation of the revenues and assets of non-stock, non-profit educational institutions
All revenues and assets of non-stock, non-profit educational institutions used actually, directly, and exclusively for educational purposes shall be exempt from taxes and duties. Upon the dissolution or cessation of the corporate existence of such institutions, their assets shall be disposed of in the manner provided by law. [Section 4, Article XIV, Constitution]
This exemption from corporate income tax is embodied in Section 30 of the NIRC which includes a non-stock, non-profit educational institution.
Note however the last paragraph of Section 30 which states: “Notwithstanding the provisions in the preceding paragraphs, the income of whatever kind and character of the foregoing organizations from any of their property, 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.”