MEMORANDUM CIRCULAR NO. 2019-06
Series of 2019
TO : ALL CONCERNED
SUBJECT : PROCEDURES IN THE SUBMISSION OF ANNUAL TAX INCENTIVE REPORT PURSUANT TO THE JOINT ADMINISTRATIVE ORDER No. 1, SERIES OF 2019
Section 3 of Republic Act (RA) No. 10963, otherwise known as the Tax Reform for Acceleration and Inclusion Law (TRAIN Law), requires the Cooperative Development Authority (CDA) to submit to the Bureau of Internal Revenue (BIR) a tax incentive report availed by cooperatives registered and enjoying incentives under RA No. 9520, which information shall be included in the database created under RA No. 10708, otherwise known as the Tax Incentives Management and Transparency Act (TIMTA).
It is the policy of the State to promote fiscal accountability and transparency in the grant and management of tax incentives by developing means to promptly measure the government’s fiscal exposure on these grants and to enable the government to monitor, review and analyze the economic impact thereof, and thereby optimized the social benefits of such incentives.
SECTION 1. PURPOSE
This Guidelines shall prescribe the procedures in the submission of Annual Tax Incentives Report by the cooperatives to the Authority pursuant to DOF-CDA-BIR Joint Administrative Order No. 1-2019.
SECTION 2. COVERAGE
All types and categories of cooperatives registered with the CDA and were issued Certificate of Tax Exemption (CTE).
SECTION 3. PROCEDURE
The cooperative shall, in the preparation and submission of the Annual Tax Incentive Report, observe the following procedures:
- Fill up the Annual Income Tax Incentive Report in the form prescribed under Annex “A” of DOF-CDA-BIR Joint Administrative Order No. 1-2019;
- Print the report and have it signed by the Chairperson and/or General Manager;
- Submit the hard copy of the required Tax Incentive Report to the CDA Extension Office having jurisdiction to the principal office of the cooperative;
Cooperative Banks, Insurance Cooperatives, Electric Cooperatives and Tertiary Cooperatives which are national in scope shall submit to the CDA Central Office.
Likewise, soft copy of the report shall be sent to the respective email address of the CDA Central Office/Extension Offices.
| Central Office/Extension Offices | Email Address |
| Central Office | [email protected] |
| MIMAROPA Extension Office | [email protected] |
| CAR Extension Office | [email protected] |
| CARAGA Extension Office | [email protected] |
| NCR – Manila Extension Office | [email protected] |
| Region I- Dagupan Extension Office | [email protected] |
| Region II – Tuguegarao Extension Office | [email protected] |
| Region III – Pampanga Extension Office | [email protected] |
| Region IV – Calamba Extension Office | [email protected] |
| Region V – Naga Extension Office | [email protected] |
| Region VI – Iloilo Extension Office | [email protected] |
| Region VII – Cebu Extension Office | [email protected] |
| Region VIII – Tacloban Extension Office | [email protected] |
| Region IX – Pagadian Extension Office | [email protected] |
| Region X – Cagayan de Oro Extension Office | [email protected] |
| Region XI – Davao Extension Office | [email protected] |
| Region XII – Kidapawan Extension Office | [email protected] |
| ARMM | [email protected] |
SECTION 4. DATE OF SUBMISSION
The cooperative shall submit the filled-up Annual Income Tax Incentive Report (Annex “A”) within the period prescribed below:
| Accounting Period | Year Ending On | Deadline of Cooperative Submission |
| Calendar Year | December 31 | April 30 of the succeeding year |
| Fiscal Year | January – November | 15 days from the deadline of filing of Annual Income Tax Return |
SECTION 5. CONSOLIDATION AND SUBMISSION
The Extension Offices shall consolidate and submit the report within thirty (30) calendar days from the deadline of the cooperatives’ submission to the CDA Central Office.
The CDA Central Office shall consolidate the report of the Extension Offices and submit the same to the BIR within fifteen (15) days from the deadline of submission of the Extension Offices.
SECTION 6. PENALTY FOR NON-COMPLIANCE
Submission of the compliance requirements under Rule II, Section 5 of the Joint Administrative Order shall be a continuing requirement for the effectivity of the Certificate of Tax Exemption (CTE) of a registered cooperative.
Failure of any registered cooperative issued with a Certificate of Tax Exemption (CTE) and availed of tax incentives to comply with the submission of the compliance requirements as required under Section 4 of this Guidelines shall be imposed of the following penalties:
| First Offense | Certificate of Tax Exemption (CTE) shall be deemed revoked and registered cooperative shall be prohibited to avail of tax exemption for a period of 1 year from the date of revocation. |
| Second Offense | Certificate of Tax Exemption (CTE) shall be deemed revoked and registered cooperative shall be prohibited to avail of tax exemption for a period of 3 years from the date of revocation. |
| Third Offense | Certificate of Tax Exemption (CTE) shall be deemed revoked and registered cooperative shall be prohibited to avail of tax exemption for a period of 5 years from the date of revocation. |
| Fourth Offense | Certificate of Tax Exemption (CTE) shall be deemed revoked and registered cooperative shall be prohibited from re-application. |
Registered cooperatives shall be liable for the payment of taxes immediately upon revocation of the Certificate of Tax Exemption (CTE), inclusive of surcharge, interest and compromise penalty. Upon payment of taxes, registered cooperatives can re-apply for the issuance of CTE which shall be effective only upon the lapse of the period of prohibition to avail of the tax exemption.
SECTION 7. TRANSITORY PROVISIONS
The cooperative shall submit to CDA the Annual Tax Incentives Report (Annex “A”) covering taxable year 2018 on or before July 31, 2019.
SECTION 8. SEPARABILITY CLAUSE
If any provision of this Guidelines is held to be unconstitutional, the other parts hereof shall continue to be in full force and effect.
SECTION 9. EFFECTIVITY
This Memorandum Circular shall take effect fifteen (15) days after its publication in the Office of the National Administrative Register (ONAR).
Approved pursuant to BOA Resolution No. 259, S-2019 dated June 18, 2019.
For the Board of Administrators
By:
(Sgd) ORLANDO R. RAVANERA
Chairman
RESOURCE/S:
