Philippines Tax Agency Issues Circular on FAQs for Taxation of Cooperatives

The Philippine Bureau of Internal Revenue Nov. 26 issued Circular No. 124-2020, providing FAQs on the taxation of cooperatives. The FAQs include: 1) the 1 percent and 2 percent creditable withholding taxes on purchases made with regular suppliers or any single purchase over 10,000 Philippine pesos (US$208) if the cooperative is considered a top withholding agent; 2) a deduction for employers’ shares to various contributions; 3) a stamp duty exemption on transactions between a cooperative and it’s members; 4) tax exemptions on interest income earned from savings and time deposit accounts of members engaged in lending; 5) documentation, application, and ...