A LOT has been said and argued about cooperatives' tax privileges. While it is true that cooperatives enjoy certain tax exemptions, their officers, accountants and external auditors must bear in mind that there are also tax compliance requirements and obligations to be considered.
A cooperative enjoys tax exemptions, including but not limited to income tax and value-added tax (VAT) or percentage tax, on the following conditions: that it must secure a tax exemption certificate, that only the related activities as specified in the articles of cooperation as well as the tax exemption certificate will be exempted within the period for which the certificate was secured and that all tax-exempt activities of the cooperative must follow the rule on whether it is transacting with members only or both members and nonmembers.
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