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RMC No. 85-2020: Circularizes Republic Act No. 11321, entitled “An Act Instituting the Farmers and Fisherfolf Enterprise Development Program of the Department of Agriculture”

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Summary

RMC No. 85-2020 circularizes RA No. 11321, which institutes the Farmers and Fisherfolk Enterprise Development Program of the Department of Agriculture.

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Key points

  1. Donor’s tax. Gifts and donations of real and personal properties to accredited farmers and fisherfolk enterprises are exempt from Donor’s Tax.
  2. Real property tax. LGUs exempt structures, buildings and warehouses used to store farm inputs and outputs from real property tax. The assessed value must not exceed Three Million Pesos (₱ 3,000,000.00).
  3. Income tax. Income arising from the enterprise’s operations may be exempted from Income Tax. The farmer and fisherfolk cooperatives and enterprises must register as barangay micro-business enterprises under RA No. 9178 (BMBEs Act of 2002).
  4. Land Bank. The Land Bank of the Philippines provides preferential rates and a special window to accredited farmers and fisherfolk enterprises.

Who is affected

  • Accredited farmers and fisherfolk enterprises
  • Farmer and fisherfolk cooperatives

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.