Publishing Pertinent Portions of P.D. 2008, Amending P.D. 1955 to Restore the Tax Exemption of Cooperatives under P.D. 175, as Amended

May 12, 1986 REVENUE MEMORANDUM CIRCULAR NO. 10-86 SUBJECT : Publishing Pertinent Portions of P.D. 2008, Amending P.D. 1955 to Restore the Tax Exemption of Cooperatives under P.D. 175, as Amended TO : All Internal Revenue Officers and Others Concerned Pertinent portions of Presidential Decree No. 2008, issued on January 8, 1986, are hereby published for the information and guidance of all concerned. "PRESIDENTIAL DECREE NO. 2008 FURTHER STRENGTHENING THE COOPERATIVE MOVEMENT BY AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NUMBERED ONE HUNDRED SEVENTY-FIVE, AS AMENDED BY PRESIDENTIAL DECREE NUMBERED NINETEEN HUNDRED AND FIFTY FIVE xxx xxx xxx Sec. 2. Section 5 of the same Decree is amended to read as follows: 'Sec. 5. Privileges of Cooperatives . Cooperatives which are in good standing as certified by the BCOD/MAF shall enjoy the following privileges: (a) Exemption from income and sales taxes until December 31, 1991: Provided , That a substantial portion of the net income of the Cooperative is returned to members in the form of interests and/or patronage refunds: Provided, further that those cooperatives whose tax exemption privileges under this Decree have already expired shall continue to enjoy such privileges but in no case shall extension go beyond December 31, 1991: Provided, finally, that the cooperative's taxable income shall mean that portion of the Cooperative's income after deducting the interest and patronage funds paid to its members; xxx xxx xxx Salient Features of Presidential Decree No. 2008 : 1. The Decree restored the tax exemption of Cooperatives previously enjoyed under P.D. 175 which had been abolished by P.D. 1955 which took effect on October 15, 1984. 2. However, since P.D. 2008 took effect on January 8, 1986, it follows that restoration of the tax exemption shall be effective only from and after the abovestated date. 3. The Decree further provides that the Cooperative's exemption from income and sales taxes shall be effective only until December 31, 1991. acd All Internal Revenue Officials, employees, and others concerned are hereby enjoined to give this Revenue Memorandum Circular the widest publicity possible. (SGD.) BIENVENIDO A. TAN, JR. Commissioner