RMC No. 38-2025 — Clarification on the requirement of submission of Taxpayer Identification Number of cooperative members for the issuance of Certificate of Tax Exemption in relation to RMC No. 158-2022

Bringing In Revenues for Nation-Building BUREAU OF INTERNAL REVENUE REPUBLICOF THE PHILIPPINES DEPARTMENT OF FINANCE National Office Building Quezon City PILIPINAS BAGONG

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REVENUE MEMORANDUMCIRCULARNO.0 3 8 - 2 0 2 5

SUBJECT Circular No. 158-2022 Clarification on the Requirement of Submission of Taxpayer Identification Number of Cooperative Members for the Issuance of Certificate of Tax Exemption in Relation to Revenue Memorandum

TO All Revenue Officials, Employees and Other Concerned

of Internal Revenue (BIR) for all taxpayers in the Philippines, serving as a crucial component in the administration of tax laws and regulations. In line with the government's efforts to improve tax administration, ensure compliance, promote transparency and accountability in its transactions, the BIR has recognized the need to standardize the compliance on the submission The Taxpayer Identification Number (TIN) is a unique identifier issued by the Bureau

of TIN for members of cooperatives.

issued. requirement of TIN in the application of Certificate of Tax Exemption (CTE) of the cooperatives and to allow ample time to comply with the requirement, this Circular is being difficulties in securing and submitting their members' TIN due to various factors, such as capacity of the members to understand the BIR regulations pertaining to application of TIN, such, taken into account these factors, and in order to aid in the smooth implementation of the delays in securing documentary requirements for registration or other administration issues. As The BIR, however, is cognizant that cooperatives have been facing challenges and

I Timeline in the compliance of cooperatives in the submission of TIN

Section 236 of the National Internal Revenue Code of 1997, as amended (Tax Code) and its members with their corresponding TINs to the BIR, along with other documentary requirements pursuant to Revenue Memorandum Order No. 76-2010. Revenue Regulations No. 7-2012. As a general rule, the cooperative must submit a list of all All cooperatives must ensure that their members possess valid TIN in compliance with

TIN requirement, but in no case shall it delay the processing and issuance by the concerned office of the BIR of the CTE of the cooperative. justifiable reasons, the cooperatives are given a period of nine (9) months to comply with the However, in case the cooperatives fail to secure the TIN of all its members due to @ SUREAYQE INTERNAL REVENUE RECORDS MANAGEMENT DIVISION

E

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BIR National Office Bldg., Senator Miriam Defensor-Santiago Avenue, Diliman, Quezon City Trunkline: 8981-7000 : 8929-7676 Website: www.bir.gov.ph

I Justifiable Reasons

The cooperative which fails to secure the TIN of all its members are required to submit a Sworn Affidavit stating therein all the justifiable reasons for failure to comply with the TIN requirement for its members prior to the application of CTE, and with an undertaking that the cooperative will comply with the TIN requirement within 9 months from the issuance of CTE subject to administrative penalties as prescribed under Revenue Memorandum Circular No. 158-2022.

rules and procedures to further improve taxpayers' service and enhance the system of issuing TIN especially to individual taxpayers. The justifiable reasons advanced shall be taken into account in. formulating policies,

H. Application of the CTE where the only Iacking requirement is TIN of the members

office of the BIR, provided that a Sworn Affidavit as required in Item II is submitted. TIN of its members, will still be processed and the corresponding CTE issued by the concerned The application for CTE of the cooperative, where the only Iacking requirement is the

IN. Denial and Suspension/Revocation of CTE

place, provided that the Sworn Affidavit as required in Item II is submitted. A separate revenue shall be denied solely on the basis of the non-submission of the TIN of its members until the availability of the enhanced Online Registration and Update System (ORUS) of the BIR is in issuance shall be promulgated as soon as the enhanced ORUS is available and already in place. No CTE of the cooperatives shall be suspended/revoked and no application for CTE

modified or revoked accordingly. All revenue issuances and BIR Rulings inconsistent herewith are hereby amended.

give this circular as wide publicity as possible. All internal revenue officials, employees and others concerned are hereby enjoined to

ROM .LUMAGUPAJR Commssioner of Internal Revenue

K-1 RGA

BUREAU OF INTERNAL REVENUE XEKis VANAGEMFNT OIVISION

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