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CH APTER VIIICAPITAL,

PRO PERTY AN D FU N D S
Mitch Barbo

Share
The per value of which may be fixed

at any figure not more than One


Thousand Pesos (P1,000.00), may
consist of common share capital and
preferred share capital
(a) Common Share Capital shall be
issued only to regular members.
(b) Preferred Share Capital may be
issued to regular and associate
members.

ASSO CIATE M EM BERS

1. Preference in the payment of


interest as provided for in the Bylaws
of the cooperative; and
2. In case of liquidation, priority in the
distribution on Preferred Share
Capital shall be prescribed in the Bylaws of the cooperative.

CAPITAL SO U RCES
Members share capital
Loans and borrowings including

deposits
Revolving Capital
Subsidies , donations , legacies ,
grants, aids and other

LIM ITATIO N S O F SH ARE CAPITAL H O LD IN G S


Not more than twenty percent (20%) of the

share capital of the cooperative


When a member dies, his heir shall be entitled
to the shares of the descendent
Total shareholding does not exceed 20%of the share

capital of the cooperative.


Heir quality (admitted as member of the
cooperative)

IF NOT:
Share in excess will revert to cooperative upon
payment to the heir of the value of such shares

ASSIG N M EN T O F SH ARE CAPITAL


CO N TRIBUTIO N /IN TEREST
Generally, no member shall transfer his

shares/interest in the cooperative or any


port thereto
UNLESS:
He hold such share capital
contribution/interest for not less than one
year.
Assignment is made to the cooperative
or member of the cooperative.
Board of directors has approved

IN TEREST O N SH ARE CAPITAL

Shall not exceed the normal rate of

return on investments as determined


by the CDA and such interest shall
be noncumulative.
Rate of Interest = X (Net Surplus less
Statutory Reserves)
Total Average Share Month

W ITH D RAW AL O F SH ARE


CAPI
TAL of a cooperative may, for any
A member
valid reason, withdraw his/her membership
from the cooperative by giving a sixty (60)
days notice to the Board of Directors.
-Fine on unpaid subscribed share capital

FIN ES

Fine on unpaid subscribed


share capital

IN VESTM EN T O F CAPITAL

Share on debentures or securities of

any other cooperative


Any reputable bank in the locality or
any cooperative
Securities issued/ guaranteed by the
government
Real estate
Other manner authorized

JO IN T R U LES A N D R EG U LATIO N
IM P LEM N ETIN G A R TIC LES 60,61
A N D 144 O F R EP U B LIC A C T 9520,
O TH ER W IS E K N O W N A S TH E
P H ILIP P IN E C O O P ER ATIV E C O D E O F
2008" IN R ELATIO N TO R A N O .
8424 O R TH E N ATIO N A L IN TER N A L
R EV EN U E C O D E, A S A M EN D ED
(S EC TIO N 6,7,8)
Charlien Joyce
Sevilla

R EV EN U E M EM O R A N D U M O R D ER

Section 6.CLA SSIFICATIO N O F


CO O PER ATIV ES A CCO R D IN G TO TH E
EX TEN T O F TH E TA X EX EM PTIO N S
G Ra)AThose
N TEDduly registered cooperatives which
transact business with members only; and

b) Those duly registered cooperative which

transact business with both members and nonmembers which are further sub-classified
according to the following:
b.1) Cooperatives with accumulated reserves and
undivided net savings of not more than Ten Million Pesos
(Php 10,000,000.00); and
b.2) Cooperatives with accumulated reserves and
undivided net savings of more than Ten Million Pesos
(Php 10,000,000.00).

Section 7.TA X EX EM PTIO N S O F D U LY


R EG ISTER ED CO O PER ATIV ES W H ICH
TR A N SA CT B U SIN ESS W ITH M EM B ER S
O NDuly
LY. registered cooperatives dealing/transacting
business with members only shall be exempt from
paying any taxes and fees, including
buton
nottransactions
limited to:
h) All taxes
a) Income Tax;
with insurance companies
b) Value-Added Tax (VAT); and banks, including but
not limited to 20% final tax
c) Percentage Tax;
on interest deposits and
d) Donor's Tax;
7.5% final income tax on
e) Excise Tax;
interest income derived
f) Documentary Stamp Tax;
from a depository bank
g) Annual Registration Feeunder
of P500.00;
the expanded foreign
currency deposit system;
and
i) Electric cooperatives duly
registered
with
the
Authority shall be exempt

Section 8.TAXABILITY/EXEM PTIO N O F D ULY


REG ISTERED CO O PERATIVES W H ICH
TRAN SACT BUSIN ESS W ITH M EM BERS AN D
Na)O Cooperatives
N -M EM BERS.
with accumulated reserves and undivided net
savings of not more than Ten Million (Php10,000,000.00) -Exemption- from all national internal revenue taxes for
which these cooperatives are liable as enumerated under
Section 7 of this Joint Rules and Regulations.
b) Cooperatives with accumulated reserves and undivided net
savings of more than Ten Million Pesos (Php10,000,000.00) b.1) Business transactions with members - Business activities engaged
in by such cooperatives with its members where said cooperative
generates revenues shall be exempt from all national internal
revenue taxes for which it is liable as enumerated in Section 7
of this Joint Rules and Regulations;
b.2) Business transactions with non-members - Cooperatives with
accumulated reserves and undivided net savings of more than
Php10,000,000.00 which transact with non-members shall:

b.2.1) Pay the taxes at the full rate


b.2.1.2) Value Added Tax (VAT)
b.2.1.3) Percentage Tax - all sales of goods
and/or services rendered to non-members
shall be subject to the applicable percentage
taxes imposed by Title V of the NIRC, as
amended, except sales made by producers,
marketing or service cooperatives;
b.2.1.4) All other Internal Revenue Taxes unless
otherwise provided by the law; and