Solon urges DOF, BIR to suspend TIN reqs for coop tax perks

Senator Win Gatchalian on Friday, 1 March 2024, urged the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) to immediately suspend a rule requiring members of cooperatives to obtain their tax identification numbers (TINs) before their cooperatives can be granted tax exemption privileges.

Gatchalian was referring to Revenue Memorandum Order (RMO) No. 76-2010, which mandates that all cooperative members secure a TIN, to be submitted along with the cooperative's regular filing of its annual income tax return.

He cited Republic Act (RA) No. 9520, or the Philippine Cooperative Code of 2008, as well as joint rules issued by the Cooperative Development Authority (CDA) and the BIR, which state that the requirements for the issuance of a Certificate of Tax Exemption (CTE) do not include a TIN for all cooperative members.

“This policy on securing a TIN before obtaining a CTE has negatively impacted our cooperatives, and suspending it is necessary as it is creating confusion on the ground,” said Gatchalian, who chairs the Senate Committee on Ways and Means.

Gatchalian noted that the implementation of the requirement varies depending on the interpretation of the concerned regional district office (RDO).

“Kaya pabalik-balik ang mga coops dahil iba-iba ang interpretation ng mga kausap nilang RDO at doon nagkakaroon ng problema ang mga members,” he lamented.

("That's why the cooperatives keep going back and forth because there are different interpretations from the RDOs they are dealing with, and that's where the problem arises for the members.")

Due to the requirement, Gatchalian stressed that many cooperatives have been unable to obtain or renew their CTEs, causing financial burdens.

“They shared the difficulties their members faced in securing TINs, such as glitches in the BIR’s online system, lack of birth certificates, unstable internet connections, additional financial burden, and the inability to leave farm work, among others,” he pointed out.

The senator expressed concern over how cooperatives can assist marginalized members if they are facing discrimination due to an agency's directive.

“We believe in the movement of the coops as a way to alleviate poverty in our country. Huwag na nating dagdagan ang pahirap sa mga coop dahil mahihirap na nga ang mga kliyente nila,” he said. ("Let's not add to the burden of the cooperatives, as their clients are already struggling.")