The Department of Finance has directed all internal revenue officers to stop issuing tax assessments against cooperatives in response to their complaints.
In a memorandum circular, the finance department said the Bureau of Internal Revenue (BIR) should halt the issuance of these tax assessment based on the old cooperative law.
Under Article 60 of the new Cooperative Code, duly registered cooperatives that do not transact any business with nonmembers or the general public would not be subject to any taxes and fees imposed under the internal revenue and other tax laws.
Article 61 also provides that cooperatives transacting business with both members and non-members shall not be subjected to tax on their transactions with members. In relation to this, the transactions of members with the cooperative shall not be subject to any taxes and fees, including but not limited to final taxes on members’ deposits and documentary tax.
Cooperatives with accumulated reserves and divided net savings of more than P10 million are exempted from income tax, value-added tax, all other taxes unless otherwise provided and donations to charitable, research and educational institutions and reinvestment to socioeconomic projects within the area of operation of the cooperative may be tax deductible.
Finance Secretary Margarito Teves said that after the BIR and Cooperative Development Authority (CDA) joint issuance was completed, revenue officers could then issue assessments, but these “must be based on the new cooperative code, the IRR [implementing rules and regulations] and the BIR-CDA joint issuance on the tax-related provision of the law.”
The BIR and the CDA have completed the draft IRR and the draft joint issuance on the tax-related provisions of Republic Act 9520 or the Cooperative Code of 2008 in September.
According to Teves, the IRR and the BIR-CDA joint issuance has to be immediately subjected to formal consultations with all stakeholders, before its submission to the Joint Congressional Oversight Committee on Cooperatives. –Lailany P. Gomez, Manila Times
July 2025
Nutrition Month
“Give us much more than P50 increase
for proper nutrition!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.
Accept National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideosturesVideos
July
3 July – International Day of Cooperatives
3 July – International Plastic Bag Free Day
5 July – World Youth Skills Day
7 July – Global Forgiveness Day
11 July – World Population Day
17 July – World Day for International Justice
28 July – World Nature Conservation Day
30 July – World Day against Trafficking in Persons
Monthly Observances:
Schools Safety Month
Nutrition Month
National Disaster Consciousness Month
Weekly Observances:
Week 2: Cultural Communities Week
Micro, Small, and Medium Enterprise
Development Week
Week 3: National Science and
Technology Week
National Disability Prevention and
Rehabilitation Week
July 1-7:
National Culture Consciousness Week
July 13-19:
Philippines Business Week
Week ending last Saturday of July:
Arbor Week
Daily Observances:
First Saturday of July:
International Cooperative Day
in the Philippines
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