BIR Clarifies Extended Validity of Cooperative Compliance Certificates for Tax Exemption Applications

DV Consulting Tax Update | July 2026

The Bureau of Internal Revenue (BIR), through Revenue Memorandum Circular No. 71-2026, clarified how the extended validity of Certificates of Compliance issued to cooperatives should be treated when processing applications for a Certificate of Tax Exemption.

The clarification follows Cooperative Development Authority Memorandum Circular No. 2026-07, which extended the validity of Certificates of Compliance issued for Calendar Year 2025. Certificates originally scheduled to expire on April 30, 2026 were recognized as valid until May 31, 2026. The CDA also extended the deadline for submitting required reports covering Fiscal Year 2025 operations until May 31, 2026, without penalty charges.

What This Means for Cooperatives

A valid Certificate of Compliance issued by the CDA remains a mandatory documentary requirement when a cooperative applies for a Certificate of Tax Exemption with the BIR.

Under RMC No. 71-2026, Certificates of Compliance for Calendar Year 2025 bearing an original expiration date of April 30, 2026 must be recognized as valid until May 31, 2026 for the evaluation and processing of Certificate of Tax Exemption applications filed during the extended validity period.

However, recognition of the extended Certificate of Compliance remains subject to the BIR’s verification procedures and applicable audit requirements.

Important Clarification

The issuance did not provide an indefinite extension.

It covered only Calendar Year 2025 Certificates of Compliance that originally expired on April 30, 2026 and Certificate of Tax Exemption applications filed on or before the extended deadline of May 31, 2026. Cooperatives should therefore verify the filing date of their applications and retain documents showing that their submissions were made within the prescribed period. (BIR)

Recommended Actions for Cooperatives

Cooperatives with pending or recently filed tax exemption applications should:

1. Verify the date when the Certificate of Tax Exemption application was submitted.

2. Retain a copy of the Calendar Year 2025 Certificate of Compliance.

3. Secure proof of submission or acknowledgment from the concerned BIR office.

4. Confirm that all required CDA and BIR documents are complete.

5. Monitor the application for additional verification or audit requirements.

Proper documentation is important because the BIR’s recognition of the extended certificate remains subject to verification and existing audit procedures.

Need Assistance with Cooperative Compliance?

DV Consulting assists cooperatives with regulatory compliance, accounting, tax filing, report preparation and applications involving the BIR and Cooperative Development Authority.

For professional assistance, contact:

DV Consulting Inc.📧 sales@dvconsultingph.com📞 0917 170 6734🌐 www.dvconsultingph.com

This material is provided for general informational purposes and should not be considered a substitute for professional advice based on the cooperative’s particular circumstances.