BIR Ruling

December 14, 1976 Mr. Gerardo Estoya President, La Castellana Sugar Samahang Nayon Bacolod City S i r : This refers to your telegram addressed to His Excellency, President Ferdinand E. Marcos requesting for a review of the exemption granted to sugar cooperatives from the payment of the 2% miller's tax. cdta In reply, I have the honor to inform you that pursuant to Presidential Decree No. 775, as implemented by Cooperatives Order No. 2 of the Sugar Quota Administration dated June 30, 1976, only sugar cooperatives duly registered or re-registered with the Sugar Quota Administration are exempt from the payment of the 2% tax imposed on Section 189 of the Tax Code. In other words, it is clear that only cooperatives are entitled to the said tax exemption. Section 9 of Cooperatives Order No. 2 provides: "Section 9. Benefits and Privileges of Cooperatives "The Certificate of Re-registration/Registration shall entitle the cooperative to enjoy the following benefits and privileges: "(a) Exemption from the payment of income tax, sales tax, compensating tax, and all other percentage taxes of whatever nature and description such as production or millers tax and such other grants of privileges and incentives under the provisions of laws of their creation before their repeal by PD 175, and those that may be granted by all government agencies to business organizations." Planter-members of cooperatives even if the latter are registered with the Sugar Quota Administration shall not be granted-exemption from the 2% miller's tax beginning the crop year 1976-1977. aisa dc Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3