RMC No. 138-2019: Publishes the full text of the Department of Agriculture’s Administrative Circular No. 08, Series of 2019 re: The Implementing Rules and Regulations of RA No. 11321 entitled “An Act Instituting the Farmers and Fisherfolk Enterprise Development Program of the Department of Agriculture” (The Sagip Saka Act)

Key points

1. Donor’s tax exemption. Gifts and donations of real and personal property are exempt from Donor’s Tax if the donor gives to the beneficiaries in Section 5 of the IRR. The property must be directly related to implementing the Program under Sections 3 and 4 of the Act.
2. Real property tax. LGUs exempt structures, buildings and warehouses used to store farm inputs and outputs from real property tax, if the assessed value does not exceed Three Million Pesos (₱3,000,000.00). The DA and DILG are to issue a Joint Memorandum Circular within sixty (60) days from effectivity of the IRR.
3. Income tax exemption. Exemption from Income Tax may be provided for income from the enterprise’s operations. Farmer and fisherfolk cooperatives and enterprises must register as barangay micro-business enterprises under RA No. 9178.
4. Criteria for the exemption. The accredited entity must be an intended beneficiary under Section 5 of the IRR. Its total assets, including those from loans but excluding the land under its office, plant and equipment, must not exceed Three Million Pesos (₱3,000,000.00), subject to revision by the appropriate agency or council.
5. BIR guidelines. The BIR, with the DA, DTI and other agencies, issues guidelines within sixty (60) days from effectivity of the IRR. They cover procedural and documentary requirements for the Income Tax and Donor’s Tax exemptions.

Who is affected

• Farmer and fisherfolk cooperatives and enterprises
• Donors to registered farmers and fisherfolk enterprises
• LGUs

Deadlines and effectivity

• DA and DILG Joint Memorandum Circular: within sixty (60) days from effectivity of the IRR
• BIR guidelines: within sixty (60) days from effectivity of the IRR