
TIN requirement exemption for coop members sought
SENATOR Sherwin Gatchalian has filed a resolution seeking an inquiry into a Bureau of Internal Revenue (BIR) requirement that threatens the tax exemption privileges of cooperatives.
The senator specifically refers to the requirement for cooperative members to present a Tax identification number (TIN) when obtaining a Certificate of Tax Exemption (CTE).
The BIR, through Revenue Memorandum Circular (RMC) No.124-2020, stated that the TIN requirement is based on a provision of the National Internal Revenue Code which states that any person required under the Code to make, render, or file a return, statement, or other document must be assigned or supplied with a TIN.
However, Gatchalian emphasized that the submission of TINs by all members of cooperatives is not a prerequisite for tax exemption under Articles 60 and 61 of the Philippine Cooperative Code of 2008.
“The tax exemption granted by law to cooperatives is under threat because of this BIR requirement,” Gatchalian said, as he filed Senate Resolution 1236 to address the issue.
The senator also pointed out that most members of registered cooperatives are individuals from the informal sector of the economy, who often see no need to obtain a TIN.
“Cooperatives are designed to empower our poor constituents, especially those in the informal sector. But the BIR requirement has created a lot of confusion and discouragement. For example, if you have market vendors as coop members, you cannot just force them to get a TIN,” he explained, citing complaints from cooperatives in Valenzuela.
Gatchalian highlighted concerns about the unavailability and frequent downtime of the BIR’s online registration and update system, which hinders cooperatives from processing TIN applications on behalf of their members.
The BIR requires cooperatives to secure proper authorization from members before applying for their TINs.