RMC No. 12-2010: Circularizes the full text of Joint Rules and Regulations Implementing Articles 60, 61 and 144 of Republic Act No. 9520, otherwise known as the “Philippine Cooperative Code of 2008” in relation to RA No. 8424 or the National Internal Revenue Code, as amended

Summary

RMC No. 12-2010 circularizes the Joint Rules and Regulations implementing Articles 60, 61 and 144 of RA No. 9520, the Philippine Cooperative Code of 2008, in relation to the NIRC. The DOF, BIR and Cooperative Development Authority signed them on February 5, 2010.

Key points

1. Tax treatment of cooperatives. The Rules cover tax exemptions of registered Cooperatives that transact only with members. They also cover taxability or exemption of those that transact with members and non-members, and taxability of unrelated income.
2. Other taxes and members. The Rules specify the taxability of Cooperatives to other internal revenue taxes and the taxability of members or shareholders of Cooperatives.
3. Certificate of Tax Exemption or Ruling. The Rules list the documents to attach to the letter-application, the validity of the Certificate or Ruling, and the application for its renewal.
4. Audit and settlement. The Rules also cover examination of the Cooperatives’ books of accounts and accounting records, and compromise settlement of unpaid tax liabilities.

Who is affected

• Duly registered Cooperatives
• Members and shareholders of Cooperatives

Deadlines and effectivity

• Joint Rules signed February 5, 2010

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.