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RMC No. 6-2024: Publishing the full text of the Joint Administrative Order No. 001-2023 guidelines to implement Sections 305, 306, 307, and 308 of the National Internal Revenue Code of 1997, as amended by the Republic Act No. 11534, otherwise known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act for Cooperatives; and full text of Fiscal Incentives Review Board (FIRB) – Advisory No. 017-2023 regarding the availability of the updated templates for the Annual Tax Incentives Report and Annual Benefits Report of Cooperatives (FIRB Form No. 3003AS v2.1 dated 6 October 2023)

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Summary

RMC No. 6-2024 publishes the full text of DOF and DTI Joint Administrative Order (JAO) No. 001-2023 on guidelines for Sections 305 to 308 of the NIRC, as amended by RA No. 11534 (CREATE Act), for Cooperatives, and FIRB Advisory No. 017-2023.

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Key points

  1. Electronic filing. Registered cooperatives, taxable or not, file returns and pay taxes by the NIRC deadline using the BIR electronic system. Cooperatives without access to electronic facilities file with their revenue district offices.
  2. ATIR and ABR reports. Cooperatives availing of tax incentives submit an Annual Tax Incentives Report (ATIR) and Annual Benefits Report (ABR) to the CDA by May 15 of the immediately following year. Cooperatives using special or preferential treatment under treaties or similar agreements must also submit them and indicate that fact.
  3. Report contents. The reports cover cooperative profile data, cost data on tax incentives, and benefits data such as taxes actually paid, in the matrix formats in the JAO annexes. The list is not exhaustive.
  4. Penalties. Failure to comply with CDA filing requirements or to show proof of electronic filing draws a fine of ₱100,000.00 for the 1st offense and ₱500,000.00 for the 2nd offense. The 3rd offense brings revocation of the BIR-issued Certificate of Tax Exemption, and failure not due to the cooperative’s fault, such as force majeure, is not a ground for revocation.
  5. After revocation. Taxes become payable immediately with surcharge, interest and compromise penalty. The cooperative may reapply for a CTE after paying, effective only after the prohibition period lapses.
  6. FIRB Advisory No. 017-2023. Updated templates, FIRB Form No. 3003AS v2.1 dated 6 October 2023, are used beginning Taxable Year 2023. The Advisory supersedes FIRB Advisory No. 16-23 and withdraws FIRB Form No. 3003AS v2.0 dated 14 September 2023.

Who is affected

  • Registered cooperatives
  • Cooperative Development Authority (CDA)

Deadlines and effectivity

  • ATIR and ABR due May 15 of the immediately following year
  • BIR and BOC submit incentives data to DOF on or before August 15 of every year
  • Updated templates used beginning Taxable Year 2023

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.