Summary
RMC No. 158-2022 clarifies the effect and penalties when a cooperative does not submit the TINs of its members within six (6) months from issuance of its Certificate of Tax Exemption (CTE), under Item A3 of RMC No. 124-2020.
Key points
- Six-month grace. The BIR allowed issuance of the CTE despite incomplete member TINs, if the cooperative submits them within six (6) months from original issuance.
- Penalties. First offense: ₱1,000 per member without TIN, with a yearly aggregate of not more than ₱25,000 under Section 250 of the NIRC. Second offense: suspension of the CTE until the TINs are submitted. Third offense: revocation and no renewal application for 3 years from revocation.
- Justifiable reasons. No penalty applies if the missing TINs belong to inactive members already delisted under CDA MC No. 2022-14, with the List of Active Members with TIN and Inactive Members submitted. No penalty applies either if the failure was due to force majeure, and submission must be done once it ceases.
- Continuing submissions. Cooperatives still submit TINs of active members to their RDO after the grace period unless a justifiable reason applies. The list is submitted a year after the original CTE and yearly thereafter, and renewal applicants must complete the TINs of active members.
Who is affected
- Cooperatives issued a Certificate of Tax Exemption
- Cooperatives applying for CTE renewal
Deadlines and effectivity
- TIN submission: within six (6) months from CTE issuance
- List of members: a year after original CTE issuance and yearly thereafter
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.