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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 cooperative.

      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 documents.

      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.

For more details on the requirements in applying for the BIR Certificate of Tax Exemption, please see attached copy of RMO 76-2020.