The Bureau of Internal Revenue (BIR) has issued the revenue regulation (RR) on the implementation of tax incentive and exemption provisions of the “Sagip Saka Act.”
BIR RR 19-2021 posted on the tax agency’s website yesterday covers the exemption from donor’s tax of donations made to, and exemption from income tax of,accredited farmers and fisherfolk enterprises.
The BIR said accredited farmers and fisherfolk enterprise may be exempt from income tax on income directly arising from the operations of the enterprise, provided they are registered as barangay micro-business enterprise (BMBE).
“The exemption from income tax shall apply only if, and during the period which, the accredited farmers and fisherfolk enterprise are registered as BMBE issued with Certificate of Authority by the Department of Trade and Industry and through the Negosyo Center in the city or municipality where the business is located,” the BIR said.
The tax agency said for the cooperative and enterprise to avail of the income tax exemption, they must be among the intended beneficiaries as identified in the implementing rules and regulations of Republic Act No. 11321, also known as An Act Instituting the Farmers and Fisherfolk Enterprise Development Program of the Department of Agriculture, or the Sagip Saka Act.
They must also have total assets amounting to not more than P3 million.
