SENATOR Win Gatchalian called on the Bureau of Internal Revenue (BIR) to suspend, pending further review, the implementation of a memorandum circular mandating all cooperative members to obtain taxpayer identification number (TIN) for the cooperative’s annual tax filing.
Articles 60 and 61 of Republic Act No. (RA) 9520 or the Philippine Cooperative Code (PCC) of 2008, grant tax exemptions to qualified cooperatives, contingent on securing a cooperative Certificate of Tax Exemption (CTE) from the BIR.
However, Gatchalian averred Revenue Memorandum Circular (RMC) No. 76-2010 mandates all cooperative members obtain TIN. Later, RMC No. 124-2020 amended the circular by allowing a six-month grace period for TIN submission by cooperatives after getting a CTE from the BIR.
During the public hearing of the Committee on Ways and Means last February 27, Gatchalian said the issuance of the circulars resulted in “chaos” among cooperative members.
Gatchalian said it would be “impractical” for those in the informal sector earning less than P250,000 annually to go to the BIR to obtain their TIN.
He added there is also nothing in RA 9520 that requires the cooperatives to submit the TIN of individual members.
“There is chaos now on the ground (because of that memorandum circular). I appreciate that you will review this, but the review is not enough.
There is already confusion on the ground. We need action,” Gatchalian told BIR officials in mix Filipino and English during the hearing (Senate Public Relations and Information Bureau).