BACOLOD CITY – Cooperatives which have long been seeking tax exemptions will be relieved about the approval by the Joint Congressional Oversight Committee on Cooperatives (JCOCC) of the Implementing Rules and Regulations (IRR) laying down guidelines for the granting of tax exemptions to cooperatives nationwide last week.

This is good news to 75,000 cooperatives all over the country which are registered with the Cooperative Development Authority (CDA), including the Federation of Cooperatives of Negros Occidental (FOCONO), which is the umbrella organization of cooperatives in Negros Occidental.

Senator Miguel Zubiri, principal author of the new Philippine Cooperative Code of 2008, and JCOCC Chairman said the Joint Rules and Regulations allow cooperatives in the country to better serve their members, without worry of restraints due to lack or shortage of funds.

The joint rules and regulations, Sen. Zubiri said are a product of the combined efforts of the Bureau of Internal Revenue (BIR) and the Cooperative Development Authority (CDA) in compliance with the provisions of the Philippine Cooperative Code of 2008.

Among others, the Joint IRR elaborates the tax exemptions of the different categories of cooperatives, particularly duly-registered cooperatives which transact with members only, and duly-registered cooperatives which transact business with members as well as with non-members.

Under the IRR, all duly-registered cooperatives enjoy exemption from transactions with insurance companies and banks.

Also, cooperatives dealing exclusively with members are exempt from payment of taxes and fees, including but not limited to, income tax, percentage tax, donor’s tax, excise tax, documentary tax, and the P500 annual registration fee.

Electric cooperatives are also exempt from payment of Value Added Tax (VAT) on systems loss and VAT on the distribution of electricity to their members.

Cooperatives doing business with members and non-members with accumulated reserves and undivided net savings of not more than P10 million are exempted from the same taxes along with those that deal with members only.

Likewise, business transactions with members of duly- registered cooperatives which have accumulated reserves and undivided net savings of more than P10 million are exempt from all national internal revenue taxes for which it is liable.