RMC No. 45-2025: Circularizing Cooperative Development Authority, Department of Finance and Bureau of Internal Revenue Joint Administrative Order No. 001-2025 entitled “Rules to Implement the Penalty Provision under Section 308 of the NIRC of 1997, as amended by R.A. No. 11534, otherwise known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, as implemented by Department of Finance, Department of Trade and Industry Joint Administrative Order (DOF-DTI JAO) No. 001-2023, issued on 9 March 2023.”

Key points

1. Coverage. The JAO governs penalties for failure to submit mandated reports on tax incentives and benefits data required under Section 305. It covers taxable year 2023 and onwards for CDA-registered cooperatives with a valid Certificate of Tax Exemption availing of incentives, and for officials or employees of the CDA.
2. Basis. Section 308 of the NIRC and Rule IV (Penalties) of DOF-DTI JAO No. 001-2023, issued on 09 March 2023, set the penalties for non-compliance with filing and reportorial requirements.
3. Sections of the JAO. The sections are legal bases, scope, reportorial requirements, punishable acts, penalties, effect of revocation of CTE, procedures, payment of fines by installment, exempting circumstances, request for reconsideration, role of the CDA, submission of reports to the FIRB, grace periods, transitory provisions, repealing clause and effectivity.

Who is affected

• CDA-registered cooperatives with a valid Certificate of Tax Exemption
• Officials and employees of the CDA

Deadlines and effectivity

• Covers taxable year 2023 and onwards
• Issued April 30, 2025