REVENUE MEMORANDUM CIRCULAR NO. 138-2019 issued on December 18, 2019 publishes the full text of the Department of Agriculture’s Administrative Circular No. 08, Series of 2019 re: The Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 11321 entitled “An Act Instituting the Farmers and Fisherfolk Enterprise Development Program of the Department of Agriculture” (The Sagip Saka Act).

Gifts and donations of real and personal properties shall be exempted from Donor’s Tax under the following conditions or terms of availment:
a. The donor must donate to the beneficiaries enumerated in Section 5 of the IRR.
b. The gifts or donations must be of personal or real property that are directly related to the implementation of the Program as provided under the applicable provisions of Sections 3 and 4 of the Act.

The Local Government Units (LGUs) shall exempt structures, buildings, and warehouses utilized for the storage of farm inputs and outputs from real property tax: Provided, that the assessed value of the property does not exceed Three Million Pesos (₱3,000,000.00). For this purpose, the Department of Agriculture (DA) and Department of Interior and Local Government (DILG), within sixty (60) days from the effectivity of the IRR, shall execute a Joint Memorandum
Circular to implement said provision.

Exemptions from Income Tax may be provided for income arising from the operations of the enterprise; Provided, that the farmer and fisherfolk cooperatives and enterprises shall register as barangay micro-business enterprises pursuant to RA No. 9178 (Barangay Micro-Business
Enterprise [BMBEs] Act of 2002).

Unless otherwise adjusted after review by the Micro, Small and Medium Enterprise Development (MSMED) Council, the following criteria must be present for the cooperative and enterprise to avail of the Income Tax exemption:
a. the accredited business entity or enterprise must be the intended beneficiaries as enumerated under Section 5 of the IRR; and
b. have a total assets including those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, shall not be more than Three Million Pesos (₱3,000,000.00) subject to revision of the appropriate government agency or council.

The BIR, in consultation with the DA, Department of Trade and Industry (DTI) and other relevant agencies shall, within sixty (60) days from the effectivity of the IRR, issue guidelines to include, among others, procedural and documentary requirements for the availment of exemption from Income Tax and Donor’s Tax for gifts and donations given to registered farmers and fisherfolk enterprises.