Despite repeated appeals from cooperative leaders to scrap the TIN requirement, the Bureau of Internal Revenue (BIR) has reaffirmed its position: the submission of cooperative members' tax identification numbers (TINs) remains mandatory.

However, the agency introduced a more flexible timeline for compliance. Cooperatives are now given nine (9) months, instead of the previous six (6), to submit the TINs of their members. This grace period aims to ease the administrative burden on cooperatives applying for a CTE.

This is the gist of the BIR's Revenue Memorandum Circular (RMC) No. 038-2025 released on April 23, clarifying the requirement for cooperatives to submit the Tax Identification Numbers (TINs) of their members in relation to RMC 158-2022, a prerequisite for the issuance of the Certificate of Tax Exemption (CTE).

The Official Requirement

Section 1 of the circular states: “All cooperatives must ensure that their members possess valid TINs in compliance with the NIRC of 1977 and Revenue Regulations 7-2012. As a general rule, the cooperative must submit a list of all its members with their corresponding TINs to the BIR, along with other documentary requirements pursuant to RMO 76-2010.”

The BIR’s Concession

Acknowledging the challenges cooperatives face, the BIR cites several barriers to TIN compliance—members' limited understanding of BIR processes, delays in securing required documents, and administrative hurdles. To support smoother implementation, the BIR states that the CTE application process will not be delayed due to pending TIN submissions.

If a cooperative is unable to secure TINs for all its members within the given timeframe, it may instead submit a Sworn Affidavit explaining the justifiable reasons for non-compliance, along with a commitment to complete the requirement within nine months.

Temporary Protection for CTEs

Significantly, Item IV of the circular assures that no CTE shall be denied, revoked, or suspended solely due to non-submission of TINs, as long as a sworn affidavit is provided. This concession remains in effect until the enhanced Online Registration and Update System (ORUS) of the BIR becomes operational.

The BIR adds that justifiable reasons submitted by cooperatives will be taken into account when formulating future policies to improve taxpayer services and streamline the TIN issuance process.

Persistent Challenges for Cooperatives

During consultations held in January and February with Senator Sherwin Gatchalian at the Senate and with BIR officials at the BIR Head Office in Quezon City on March 18, cooperative leaders shared their difficulties in complying with the TIN requirement. Many members cannot be contacted, particularly in cooperatives with thousands of members spread across remote regions.

Further, some members are unwilling or financially unable to travel to BIR offices to secure a TIN. Even with online options, poor internet connectivity and lack of digital access remain widespread obstacles.

In line with the Cooperative Development Authority (CDA) Memorandum 2022-14 dated May 20, 2022, cooperatives are also mandated to maintain a list of "Active" and "Inactive" members—yet many report difficulties in keeping these records updated.  The BIR will not require TINs from “Inactive members”.

Bottleneck to Tax Exemption

While Articles 60 and 61 of the Cooperative Code of 2008 (RA 9520) grant cooperatives tax-exempt status, many have been unable to avail themselves of this benefit due to the hurdles posed by the TIN requirement.

As far back as 2014, then-Senator Bongbong Marcos, serving as Vice Chairperson of the Senate Committee on Cooperatives, called on the Department of Finance to automatically grant tax exemption to cooperatives registered with the Cooperative Development Authority (CDA).

Despite recent concessions, the struggle continues for cooperatives to enjoy the full benefits of their legally mandated tax-exempt status.