Section 5October 21, 1997, Sec./Art. 5

Tax exemption. – An Association shall be exempt from payment of tax in respect to income it receives, including interest on its deposits with any bank: Provided, however, That income derived from any of its properties, real or personal, or any activity conducted for profit, regardless of the disposition thereof, is subject to the corresponding internal revenue taxes imposed under the National Internal Revenue Code.

Interest earnings on deposits of members with Associations as well as the shares of its members from the net income of the Associations shall be exempt from income tax.