QUEZON CITY, February 6, 2026 – In a significant step toward harmonizing tax administration with the unique mandate of cooperatives, the Philippine Chamber of Cooperatives, Inc. (Coop Chamber) and the Bureau of Internal Revenue (BIR) have strengthened their partnership following a constructive high-level dialogue held yesterday, February 5, at the BIR National Office.
The meeting, led by Coop Chamber Chairperson Noel D. Raboy and BIR Commissioner Charlito Martin “Charlie” Mendoza, resulted in a mutual commitment to address key sector concerns, including audit parameters, compliance requirements, and processing timelines. The Coop Chamber explicitly lauded the BIR leadership for its willingness to listen and its decisive action to resolve these long-standing issues.
Harmonizing Audit Parameters
A primary focus of the dialogue was the alignment of the BIR’s “risk-based” audit selection with the statutory tax privileges of cooperatives. Chairperson Noel D. Raboy articulated the sector’s concern that automated parameters often misidentify compliant cooperatives as high-risk tax evaders due to their high revenues and legally mandated low-income tax payments.
“We commend Commissioner Mendoza and the entire Bureau for opening their doors and listening to the plight of the cooperative sector,” Chairperson Raboy stated. Risk-based audits must distinguish between commercial profit-seeking and cooperative service. When our revenues are flagged as ‘suspicious’ simply because we utilize our lawful tax exemptions, it undermines the very law that empowers cooperatives to serve the poor. We are grateful that the Commissioner sees this distinction and has committed to rectifying it.”
Commissioner Mendoza reassured the delegation that tax exemption privileges alone will not serve as a basis for issuing Letters of Authority (LOA) and committed to refining the selection process to reflect the legitimate financial behavior of cooperatives.
Institutionalizing the Partnership
To ensure these agreements translate into long-term policy consistency, Commissioner Mendoza formally invited the Coop Chamber to nominate representatives to the BIR’s Technical Working Group (TWG).
Secretary General Edwin Bustillos, in coordination with the National Anti-Poverty Commission (NAPC) Cooperative Sectoral Council, confirmed that the Chamber will consolidate a list of focal persons from its 16 regional chapters to serve on the TWG consultation, ensuring grassroots realities and recommendations are considered in future revenue regulations.
Collaborative Approach to Compliance (TIN, TWA & CTE)
The dialogue also tackled administrative hurdles, specifically the requirement for individual Tax Identification Numbers (TINs) and the timeline for releasing Certificates of Tax Exemption (CTE).
“The imposition of individual TINs as a prerequisite for Tax Exemption renewal creates an administrative deadlock that threatens the existence of our member cooperatives,” Raboy articulated. “We stand firm that administrative issuances should not supersede the legislative intent of RA 9520, which is to foster inclusive development, not burden the marginalized with procedural roadblocks.”
Coop Chamber Trustees Marlene Sindayen and Lily Silubrico stressed that the TIN requirement for CTE renewal poses a severe threat to the sector’s viability, emphasizing its conflict with the cooperative mandate under Republic Act 9520.
Streamlining CTE Releases
Crucially, the Coop Chamber urged the Bureau to adhere to a strict and reasonable timeline for the release of CTEs, warning that prolonged delays result in debilitating penalties and legal uncertainty for cooperatives.
The Chamber cited the case of MADECO as a sobering example of how protracted administrative processes and unresolved requirements can severely impact a cooperative’s financial health. To prevent similar “negative effects” from befalling other cooperatives, the Chamber called for immediate reforms in processing speeds.
Commissioner Mendoza acknowledged these concerns and expressed his committment to reviewing the Chamber’s proposal for a mandatory timeline for CTE applications and renewals.
Immediate Action Points:
TIN Extension: The BIR expressed openness to discussing a possible extension of the submission period for member TINs to allow time for the cooperatives to comply, while the said issue is pending before the Supreme Court as well as in Congress.
TWA Education: Regarding Top Withholding Agents (TWA), Deputy Commissioner Larry Barcelo proposed a joint Tax Education Drive to assist micro and transport cooperatives, a move welcomed by the Chamber trustees.
About the Philippine Chamber of Cooperatives, Inc.
The Philippine Chamber of Cooperatives, Inc. (Coop Chamber) is the unifying voice of the Philippine cooperative movement, dedicated to protecting the rights and privileges of cooperatives while promoting their role as engines of social justice and economic development.
Contact person:
Edwin A. Bustillos
Secretary-General
Philippine Chamber of Cooperatives, Inc.
Email: coopchamber.ph@gmail.com
Website: https://coopchamberph.org/
Facebook: Coop Chamber PH
Phone: +63 917 801 7309
