Interest income from Deposits in Cooperatives are Exempt from Tax

RMC No. 121-2021: Clarifies the taxability of the interest paid by Cooperatives to its member’s deposit or fixed deposits otherwise known as share capital

Per this RMC, members of the cooperative are not liable to pay any tax and fee on the interest earned on member's deposits and fixed deposits (share capital). Hence, cooperatives are also not liable to withhold tax on the aforesaid interest payments to members.

Source:

https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/2021%20RMCs/RMC%20No.%20121-2021.pdf

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