THE Bureau of Internal Revenue (BIR) said all accredited farming and fisheries groups may be exempted from income taxes as long as they are registered as barangay micro-businesses.
The BIR released Revenue Regulation No. 19-2021 which implements the tax incentive provisions of Republic Act No. 11321 or the Farmers and Fisherfolk Enterprise Development Program, also known as Sagip Saka Act.
Under the regulation, accredited farmers and fisherfolk enterprises may be exempted from income tax directly from their operations if they are registered as barangay micro-business enterprises.
Groups covered by the regulation include producer groups, fisherfolk organizations and cooperatives, and clusters of growers and fishers.
These enterprises have products that are in the priority commodity value chains and can increase their marketable surplus through enterprise development, the BIR regulation said.
To avail of the income tax exemption, the cooperative or enterprise must be registered as a barangay micro-business enterprise and have total assets that do not exceed P3 million, including assets from loans but excluding the land on which the office or plant is based.
Donations of real and personal properties to such farmers and fisherfolk enterprises are also exempt from donor’s taxes.
The donation must be aligned with the development program’s goals of supporting farmers and fisherfolks in achieving “sustainable modern agriculture and food security.”
Meanwhile, the recipient must be certified by the Department of Agriculture and a beneficiary of the development program. — J.P.Ibanez