Article 61 Tax and Other Exemptions - Cooperatives Transacting Business With Both Members
Article 61 Tax and Other Exemptions - Cooperatives Transacting Business With Both Members
Article 61 Tax and Other Exemptions - Cooperatives Transacting Business With Both Members
Tax and other exemptions - Cooperatives transacting business with both members
and non-members shall not be subject to tax on their transactions with members.
Notwithstanding the provisions of any law or regulation to the contrary, such
cooperatives dealing with nonmembers shall enjoy the following tax exemptions:
Income Tax - On the amount allocated for interest on capitals, the same tax is
not consequently imposed on interest individually received by members.
Provided further, that cooperatives, regardless of classification, are exempt from
income tax from the date of registration with the Authority;
Value-Added Tax - On transactions with non-members: That cooperatives duly
registered with the Authority, are exempt from the payment of value-added tax,
subject to Section 109, sub-sections L, M and N of Republic Act No. 9337, the
National Internal Revenue Code, as amended
Article 62
Cooperatives shall enjoy the privilege of depositing their sealed cash boxes or
containers, documents or any valuable papers in the safes of the municipal or
city treasurers and other government offices free of charge
Cooperatives organized among government employees shall enjoy the free use
of any available space in their agency, whether owned or rented by the
Government;
Cooperatives rendering special types of services and facilities such as cold
storage, ice plant, electricity, transportation, and similar services and facilities
shall secure a franchise therefor
the preferential right to supply government institutions and agencies rice, corn
and other grains, fish and other marine products, meat, eggs, milk, vegetables,
tobacco and other agricultural commodities produced by their members shall be
granted to the cooperatives concerned;
Preferential treatment in the allocation of fertilizers, including seeds and other
agricultural inputs and implements, and in rice distribution shall be granted to
cooperatives by the appropriate government agencies;
Preferential and equitable treatment in the allocation or control of bottomries of
commercial shipping vessels in connection with the shipment of goods and
products of cooperatives;
Cooperatives and their federations, such as farm and fishery producers and
suppliers, market vendors and such other cooperatives, shall have preferential
rights in the management of public markets and/or lease of public market
facilities, stalls or spaces
Cooperatives engaged in credit services and/or federations shall be entitled to
loans, credit lines, rediscounting of their loan notes, and other eligible papers
with the Development Bank of the Philippines, the Land Bank of the Philippines
and other financial institutions except the Bangko Sentral ng Pilipinas (BSP)
A public transport service cooperative may be entitled to financing support for the
acquisition and/or maintenance of land and sea transport equipment, facilities
and parts through the program of the government financial institutions.
Cooperatives transacting business with the Government of the Philippines or any
of its political subdivisions or any of its agencies or instrumentalities, including
government-owned and controlled corporations shall be exempt from
prequalification bidding requirements.
Cooperatives shall enjoy the privilege of being represented by the provincial or
city fiscal or the Office of the Solicitor General, free of charge
Cooperatives organized by faculty members and employees of educational
institutions shall have the preferential right in the management of the canteen
and other services related to the operation of the educational institution where
they are employed
The appropriate housing agencies and government financial institutions shall
create a special window for financing housing projects undertaken by
cooperatives, with interest rates and terms equal
CHAPTER VI
INSOLVENCY OF COOPERATIVES
Article 63
CHAPTER VII
DISSOLUTION OF COOPERATIVES
Article 64
“(4) The nature and extent of the interests of the members of the cooperative.
Article 66
“(2) Insolvency,
Article 67
Dissolution by the Order of the Authority. - The Authority may suspend or revoke, after
due notice and hearing, the certificate of registration of a cooperative on any of the
following grounds:
“(1) Having obtained its registration by fraud:
“(3) Willful violation, despite notice by the Authority, of the provisions of this Code or its
bylaws;
“(5) Failure to meet the required minimum number of members in the cooperative.
Article 68
Article 69
Article 70
Rules and Regulations on Liquidation - The Authority shall issue the appropriate
implementing guidelines for the liquidation of cooperatives.”