Exemption from the Payment of Income Tax

August 3, 1988 BIR RULING NO. 369-88 24 204-87 369-88 Gentlemen : This refers to your letter dated May 18, 1988 requesting exemption from the payment of income tax. Documentary evidence submitted shows that you are a sugar cooperative marketing association duly registered with the Philippine Sugar Commission and with the Sugar Regulatory Administration under Certificate of Registration No. SC-31 (Renewal) issued on October 13, 1987 pursuant to P.D. No. 388 as amended by P.D. No. 775 and as further amended by P.D. No. 1192. In reply thereto, I have the honor to inform you that Executive Order No. 93 which took effect on March 10, 1987 withdrew all tax exemptions granted to Government and private entities. However, implementation of said Executive Order insofar as electric, agricultural, irrigation and waterworks cooperatives are concerned was suspended until June 30, 1987 (Memorandum Order No. 65 dated January 21, 1987 of the President). Agricultural cooperatives include sugar cooperatives organized under P.D. No. 388 as amended by P.D. No. 775. Accordingly, the tax exemption privilege of sugar cooperatives, like you, expired as of June 30, 1987. Such being the case, you are now subject to tax, such as income tax. cdta Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner