Suspension of TIN requirements for coop tax perks urged
‘This policy on securing a tax identification number before obtaining a certificate of tax exemption has negatively impacted our cooperatives, and suspending it is necessary as it is creating confusion on the ground.’
Senator Win Gatchalian (File photo)
Senator Win Gatchalian on Friday urged the Department of Finance and the Bureau of Internal Revenue (BIR) to immediately suspend a rule requiring members of cooperatives to obtain their respective tax identification numbers (TINs) before tax exemption privileges are given to their cooperatives.
Gatchalian was referring to Revenue Memorandum Order (RMO) No. 76-2010, which states that all members of a cooperative are required to secure a TIN, to be submitted together with the regular filing of the cooperative’s annual income tax return.
He cited the Republic Act 9520, or the Philippine Cooperative Code of 2008 and the joint rules issued by the Cooperative Development Authority and the BIR, which stated that the requirements for the issuance of a Certificate of Tax Exemption (CTE) do not include a TIN for all cooperative members.
Negative impact
“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,” Gatchalian, who chairs Senate Committee on Ways and Means, said.
He noted the implementation of the requirement depends on the interpretation of the concerned regional district office (RDO).
“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,” he lamented.
Due to the said requirement, Gatchalian stressed many cooperatives couldn’t obtain or renew their CTEs and caused them financial burdens.
Difficulties
“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 about 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. Let’s not add to the burden of the cooperatives, as their clients are already struggling,” he said.