Senator Sherwin Gatchalian has called for the suspension and review of a Bureau of Internal Revenue (BIR) rule requiring cooperative members to obtain taxpayer identification numbers (TINs) for tax exemption eligibility.
During a Senate hearing, Gatchalian argued that the rule, outlined in Revenue Memorandum Circulars (RMC) Nos. 76-2010 and 124-2020, contradict the Philippine Cooperative Code of 2008 and impose unnecessary burdens on cooperatives, especially those with informal workers.
The rule requires all cooperative members to have TINs, a requirement not applied to other tax-exempt entities, causing confusion and making compliance difficult.
Gatchalian also raised concerns about technical issues with BIR’s Online Registration and Update System and inconsistent implementation across different Revenue District Offices.
He has filed Senate Resolution No. 1286 to assess the policy’s impact and suggest reforms, emphasizing that the rule hinders cooperative operations and creates bureaucratic challenges.
Source: PhilNews24 | February 28, 2025
