Tax Exemption Privileges
·
For instance, a cooperative which does not transact business with non-members or the
general public are exempted from government taxes or fees imposed under the
Internal Revenue Laws and other laws.
·
If a cooperative transacts business
with both the general public and its members, it is nevertheless exempted from paying taxes on the transaction made
with its members.
·
Even then, coops which transact
business with the general public still enjoy
very liberal tax exemptions.
·
Coops with accumulated reserves and
undivided net savings of not more than P10 million are exempt from national,
city, provincial, municipal or barangay taxes.
·
They are exempt from customs duties
, advance sales or compensating taxes on importation of machineries and spare
parts which are not available locally as long as the Department of Trade and
Industry certifies it so.
·
Even coops with more than P10
million accumulated reserves and undivided net savings are exempt from paying
income and sales taxes on sales to members for a period of at least 10 years from registration.
·
Donations to charitable, research
and educational institutions and reinvestment in socio-economic projects are
also tax deductible.
·
Transactions with banks and
insurance companies are exempted from paying local taxes.
·
Judges who are ex-officio notaries
public will give free service to coops related to registration and instrument
of loan not exceeding P50,000.00.
·
Register of deeds will register for
free any instrument of a coop relative to loan not exceeding P50,000.00.
·
Coops are exempt from paying court
and sheriffs fees. Coops are exempt from putting up a bond when it makes a
court appeal.
·
Securities issued by coops are
exempt from the provisions of the Securities Act as long as these securities
are not speculative.
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