When applying or a new CTE or to retain its current CTE, co-ops are required by the Bureau of Internal Revenue (BIR) under Revenue Memorandum Circular 102-2016 to submit the names of their members with corresponding Share Capital in the co-op, and their TIN.
However, many co-op leaders have complained that it is very difficult – especially for co-ops with hundreds or even thousands of members – to comply. As a result, many co-ops cannot enjoy tax exemption.
RMC 102-2016 Section 3 allows Residence Certificate or cedula: “Co-ops, with authorization from members, may apply for the issuance of TIN in behalf of its members, by collating the members’ accomplished BIR Form 1904 plus government-issued ID, birth certificate, cedula which show 1) name, 2) address, and 3) birthdate.”
According to the BIR’s Atty. Venus Axalan, electronic registration or “eREG” was created specifically to assist co-ops in their CTE processing. Co-ops can go online but there are some documentary requirements to be given access to the online TIN distribution. It was opened just for co-ops.”
For a time, “eREG” was suspended due to abuse as some co-ops sold TINs.
Axalan stressed: “Co-ops, with such delegated authority, must ensure that no individual will have multiple TINs or the co-op will be fined P1,000 for the cancellation of TIN.”
Interested co-ops can enroll in “eREG” first by writing a “Letter of Intent” to:
Client Support Service
Bureau of Internal Revenue
ATTENTION: CHIEF OF THE SERVICE PROGRAMS MONITORING DIVISION
The “Letter of Intent” may be received by the BIR Regional Office where co-op is located, and they will forward to the National Office.
According to the BIR Client Support Services, there are two co-ops that have already been granted access to “eREG” as of July 22, 2020.
For the moment, the BIR allows participating co-ops to issue ten (10) TINs per day per cooperative.
BIR has also issued the Memo circular authorizing co-ops to apply for TIN for and in behalf of their members. Co-ops just need to get an authorization letter signed by the member with all the documentary requirements attached including Form 1904 and any government-issued ID. This will be opened to co-ops with many members.
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