Cooperatives Exempt Only from Payment of Income and Sales Taxes

July 7, 1980 BIR RULING NO. 094-80 Western Mindanao State University Consumers Cooperative Zamboanga City Attention: Mr . Emmanuel Mangubat General Manager Gentlemen : This refers to your telegram dated March 7, 1980 requesting exemption from the payment of the annual graduated fixed tax. In reply, I have the honor to inform you that cooperatives are exempt only from the payment of income and sales taxes. [Sec. 5(a), P.D. No. 175] Under the Tax Code, as amended, Section 194 to Section 199 and Section 201 provide for the imposition of sales tax on commodities, wares or articles locally manufactured and produced in which case, as a cooperative, you are only exempt from the sales tax imposed by said provisions of law. Consequently, you are subject to the graduated annual fixed tax imposed in Section 192(2) of the Tax Code of 1977, as amended. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner of Internal Revenue