Tuesday, December 21, 2010

BIR WAIVES TIN


BIR WAIVES TIN, WILL ALLOW PHOTOCOPY OF MEMBERS' LIST/CAPITAL SHARES IN CO-OP'S APPLICATION FOR TAX EXEMPTION CERTIFICATE

Good News! The Bureau of Internal Revenue will no longer require cooperatives to submit an "Original Copy of Certification under Oath of the List of Cooperative members and their respective Taxpayer Identification Number (TIN) and their capital contribution."

This is when cooperatives apply with the BIR for a Certificate of Tax Exemption, which was earlier required under BIR Revenue Memorandum No. 76-2010, dated September 28, 2010.

In its subsequent Revenue Memorandum Circular No. 81-2010, dated November 5, 2010, the BIR said that, in place of the abovementioned requirement, which cooperatives found onerous, it will "..allow the submission of the Certified Photocopy of the List of Cooperative members with their Respective Capital Contributions, submitted by the cooperatives in obtaining their Certificate of Confirmation of New Registration and Certificate of Good Standing with the Cooperative Development Authority (CDA).."

What a relief, indeed! We can only thank BIR Commissioner KIM S. JACINTO-HENARES, and the concerned CDA officials whom we can presume to have convinced BIR and the Department of Finance people to reconsider their original, hard stance, which met with strong oppoosition from many cooperative sectors. Thank you, Undersec. Lecira Juarez of the CDA!

We are reprinting the following, for the guidance of all cooperatives:


REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUES

November 5, 2010

SUBJECT : Clarification on the Documentary Requirements for the Application
for Certificate of Tax Exemption for Cooperatives (BIR Form No.
1945) pursuant to Revenue Memorandum Order No. 76-2010
dated September 28, 2010

TO : All Internal Revenue Officers and Others Concerned.

Revenue Memorandum Order No. 76-2010 dated September 28, 2010 was issued to prescribe the policies and guidelines for the issuance of Certificates of Tax Exemption for registered Cooperatives under Republic Act (RA) No. 9520, otherwise known as the "Philippine Cooperative Code of 2008."

In compliance with the submission of the additional requirement mentioned in Section 5 (A) of Revenue Memorandum Order No. 76-2010, this Circular is issued to allow the submission of the Certified Photocopy of the List of Cooperative Members with their Respective Capital Contributions submitted by the cooperatives in obtaining their Certificate of Confirmation of New Registration and Certificate of Good Standing with the Cooperative Development Authority (CDA).

All internal revenue officers are hereby enjoined to give this Circular a wide publicity as possible.


(Original Signed)

KIM S. JACINTO-HENARES

Commissioner of Internal Revenue
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