Philippines: Guidance for cooperatives

Joint Administrative Order (JAO) No. 001-2023 (12 April 2023)

Joint Administrative Order (JAO) No. 001-2023 (12 April 2023)

The Department of Finance (DOF) and the Department of Trade and Industry (DTI) issued Joint Administrative Order (JAO) No. 001-2023 (12 April 2023) to provide guidelines to implement sections 305, 306, 307, and 308 of the National Internal Revenue Code of 1997 for cooperatives registered with the Cooperative Development Authority (CDA).

The JAO is effective 15 days following publication in a newspaper of general circulation and filing of three copies with the Office of National Administrative Register (ONAR), University of the Philippine (UP) Law Center, Diliman, Quezon City.

The JAO applies to :

  • The CDA with respect to the submission of reports under the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE)
  • All cooperatives registered with the CDA

Issues addressed in the JAO include:

  • Compliance requirements for registered cooperatives (Rule II)
    • Filing of tax returns and payment of tax liabilities
    • Contents and submission of the annual tax incentives report and annual benefits report
  • Incentives monitoring mechanism (Rule III)
  • Penalties (Rule IV)
    • Failure to submit the reportorial requirements by a registered cooperative
    • Material misinterpretation of information for purposes of availing of incentives 
    • Non-compliance of government officials or employees with the provisions of the rules
    • Accrual of penalties to the general fund

Read an April 2023 report prepared by the KPMG member firm in the Philippines



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