Guidelines on the issuance of certificate of tax exemption of coops
Guidelines on the issuance of certificate of tax exemption of cooperatives
To expedite the processing and confirmation of tax
exemptions of cooperatives, the BIR has adopted the following guidelines and
procedures in the availment of tax incentives of cooperatives under Republic
Act (RA) No. 9520.
1. All cooperatives previously registered with and
confirmed by the Cooperative Development Authority (CDA) under RA 6938 and RA
6939 are deemed registered under RA 9520 (new Cooperative Code), and a new
certificate of registration will be issued by the CDA.
2. All cooperatives must first secure their new
certificate of exemption from the CDA before they could apply for Certificate
of Tax Exemption from the BIR. The
application should be filed and acted upon by the Revenue District Office and
Revenue Region having jurisdiction over the principal place of business of the
3. Cooperatives applying for tax exemption shall be
required to update their BIR registration with the RDO having jurisdiction over
their principal place of business. The
application for Registration Update of the cooperative may be processed simultaneously
with its application for tax exemption.
4. The updated Certificate of Registration shall be
issued and released by the BIR to the cooperative together with the Certificate
of Tax Exemption within 10 working days from the submission of complete
5. The Certificate of Tax Exemption shall be valid for a
period of 5 years from the date of issue or date of effectivity, unless sooner
revoked or cancelled. The original
Certificate of Tax Exemption may be renewed by filing BIR Form 1945 and
submitting all required documentary requirements at least two months before the
expiration of the certificate of exemption.
The renewal certificate shall be valid for another 5 years, unless
sooner revoked for a cause.
All applications for tax exemption filed
by cooperatives with the BIR Law Division prior to the issuance of the RMO
76-2010 shall be transmitted to the concerned RDO for processing. Likewise, they shall also be required to
update their BIR registration.
details on the requirements in applying for the BIR Certificate of Tax
Exemption, please see attached copy of RMO 76-2020.