BIR Ruling

June 10, 1977 Exemption from the 2% Tax on Cooperatives Further to our letter to you dated February 10, 1977 wherein it was held that "it appearing that Cooperative is registered with the Sugar Quota Administration pursuant to Section 4(1) of Presidential Decree No. 388, as amended by Presidential Decree No. 775; that the sugar cane it caused to be milled into sugar are owed by the Cooperative and the resulting sugar thus milled is likewise owned by it, the share of that Cooperative in the sugar so milled is exempt from the 2% tax," please be advised that in the 2nd Indorsement of the Regional Director, Revenue Region No. 4-C, San Pablo City, it was confirmed that: 1. The sugar canes which that Cooperative has caused to be milled by the Canlubang Sugar Mills belong to that Cooperative; and 2. It is that Cooperative which shares in the sugar milled by said Central and not its planter members. In view of the foregoing, our aforesaid ruling holding that Cooperative exempt from the 2% tax on its share of the sugar so milled is hereby reiterated. The Canlubang Sugar Corporation has been advised of this ruling. cdta