Guideline on Issuance of CGS to Cooperatives

Implements State policy under RA 9520 (Philippine Cooperative Code of 2008) to provide incentives to registered cooperatives.
Aims to:
- Set requirements pursuant to RA 9520 and RA 6939.
- Establish administrative responsibilities within the Cooperative Development Authority (CDA).
- Set standards for availing cooperative incentives and privileges.

Accountable Officers: Persons responsible for cooperative funds and properties (e.g., Chairman, Manager).
Authority: Cooperative Development Authority.
Business Operation: Economic undertakings aligned with cooperative objectives.
Certificate of Good Standing (CGS): Certificate confirming compliance allowing access to incentives.
Cooperative Activities: Membership, governance, and institutional undertakings.
Legitimate Purposes: Purposes lawful and not against morals or public policy.
Operating Cooperative: Cooperative actively performing its activities; newly registered within 1 year may waive business operation requirement.
Preceding Fiscal Year: The fiscal year before CGS issuance.
Statutory Reports: Mandatory reports under RA 9520 and RA 6939.

Regular Purpose:
- Compliance with mandatory requirements under RA 9520.
- Access to incentives under CDA-BIR Joint Rules and local permits.
Special Purpose:
- Legitimate reasons including financial assistance applications, importation of machineries, or accreditation as a training provider.

For Regular Purpose:
- Letter request signed by Chairman or authorized representative stating reason.
- Proof or copies of statutory reports for preceding fiscal year.
- Updated bond of accountable officers/employees.
- Minutes of General Assembly showing election results, approval of plans, and acceptance of reports.
- Certification fee.
For Special Purpose:
- Letter request stating purpose.
- Copy of latest CGS issued for regular purpose.
- Favorable endorsement from Extension Office.
- Certification fee.

Exempt from submitting statutory reports and bond if applied within 90 days of registration.
If applied after 90 days but within one year, exempt from submitting statutory reports and General Assembly minutes.

Failure to submit statutory reports for two or more consecutive years.
Late submission of reports exceeding six months for at least two consecutive years.
Non-compliance with CDA guidelines including laws, circulars, and bylaws.
Questionable legitimacy of cooperative leadership.

Extension Office Director:
- CGS applications except special cases.
Executive Director:
- Tertiary cooperatives, cooperative banks, and insurance cooperatives for regular purposes.
Chairperson:
- Special purposes like rice importation incentives, machinery and equipment importation incentives, and electric/cooperative banks’ specific needs.

Board of Administrators may waive statutory report and General Assembly minutes requirements upon recommendation due to calamities or force majeure.
Certification from LGU or relevant agencies required in lieu of waived items.
Other requirements remain mandatory.

Certification fee: Php 100 per CGS.
Penalties:
- Php 300 per year for failure to secure CGS.
- Php 300 for late filing.

The guidelines take effect 15 days after filing with the Office of National Administrative Register (ONAR).