Tax Exemption Granted to U.S.T. Cooperative

October 20, 1958 BIR RULING NO. 578-58 The U.S.T. Cooperative University of Santo Tomas Manila Gentlemen : I have the honor to acknowledge receipt of your letter dated October 14, 1958 requesting exemption from payment of internal revenue taxes under the provision of Republic Act No. 2023. Section 66 of said Act provides as follows: "SEC. 66. Exemptions . Co-operatives registered under this Act shall, notwithstanding the provisions of existing law to the contrary, enjoy the following exemptions: "(1) Co-operatives with net assets of not more than five hundred thousand pesos shall be exempt from all taxes and government fees of whatever name and nature except those provided for under this Act: Provided , however , That co-operatives having net assets in excess of five hundred thousand pesos shall pay taxes as provided hereunder: "(a) Income Tax they shall pay tax at the full rate as provided under existing laws on the amount allocated for interest on capital; "(b) Sales Tax they shall pay fixed and percentage taxes at the full rate as provided under existing laws on gross sales to non-members; and "(c) They shall pay all other taxes, unless otherwise provided herein at the full rate as provided under existing laws." Your total net assets as of March 31, 1958 is P388,561.32. Your financial statement which has been certified by Mr. Constantino S. de la Pea, Certified Public Accountant, shows that your total net assets amount to P388,561.32. The Administrator of the Cooperative Administration Office, in his letter dated October 7, 1958, certified that your cooperative association is registered with and is under the jurisdiction of said Office. In view of the foregoing, your association is exempt from the payment of internal revenue taxes in accordance with the above-quoted provision of Republic Act 2023. cdpr Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue