RMO No. 76-2010: Prescribes the policies and guidelines in the issuance of Certificate of Tax Exemption of Cooperatives and the monitoring thereof

Key points

1. New CDA registration first. Cooperatives registered with and confirmed by the Cooperative Development Authority (CDA) under RA Nos. 6938 and 6939 are deemed registered under the Cooperative Code (RA No. 9520), and CDA issues a new Certificate of Registration. Only after getting it can a cooperative apply to the BIR for a Certificate of Tax Exemption.
2. Application at the RDO. The cooperative updates its BIR registration with the RDO covering its principal place of business. The RDO releases the Updated Certificate of Registration with the Certificate of Tax Exemption within ten (10) working days from submission of complete documents, and does not accept applications or renewals lacking the required documents.
3. Validity and renewal. The Certificate of Tax Exemption is valid for five (5) years from date of issue or effectivity, unless sooner revoked or cancelled. Cooperatives file BIR Form No. 1945 at least two (2) months before expiration, and the renewal is good for another five (5) years unless sooner revoked for cause.
4. Yearly monitoring. Cooperatives submit specified information or documents to the RDO each year together with the Annual Information Return (BIR Form 1702), due on or before the 15th day of the fourth month following the close of the calendar year. Failure to comply is ground for cancellation or revocation of the Certificate.
5. Pending applications. Applications under RA No. 9520 filed with the Law Division before the Order go to the concerned RDO within ten (10) days from effectivity of the Order. The exemptions and incentives under Articles 60 and 61 of RA No. 9520 are specified in the Order.

Who is affected

• Cooperatives registered with the Cooperative Development Authority
• Revenue District Offices

Deadlines and effectivity

• Certificate issued within ten (10) working days from complete documents
• Certificate validity: five (5) years
• Renewal filing (BIR Form No. 1945): at least two (2) months before expiration
• BIR Form 1702: due on or before the 15th day of the fourth month after calendar year end