Summary
RMC No. 18-2017 circularizes Memorandum No. 008-2017 on issuing Certificates of Tax Exemption to service cooperatives.
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Key points
- Not totally barred. Service cooperatives are not totally prohibited from the tax incentives under RA No. 9520. They must be duly registered with the Cooperative Development Authority (CDA) and hold Certificates of Good Standing showing they are bona fide cooperatives under RA No. 9520.
- Post audit verification. These cooperatives are subject to post audit verification to check whether they are used as a tax shield to avoid or evade taxes.
- Tax exemption certificates. Service cooperatives that fully comply with CDA guidelines may be given tax exemption certificates. They must also submit the documents required by the BIR under Revenue Memorandum Order No. 76-2010 dated September 27, 2010.
Who is affected
- Service cooperatives registered with the CDA
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.