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BY
VICTORINO ABRUGAR
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1. Income tax
exemption from
income arising from
the operations of the
enterprise
2. Exemption from
the coverage of the
Minimum Wage Law
(BMBE employees
will still receive the
same social security
and health care benefits as other employees)
3. Priority to a special credit window set up specifically for the financing requirements of
BMBEs
4. Technology transfer, production and management training, and marketing assistance
programs for BMBE beneficiaries.
Sounds interesting, especially the income tax exemption? Lets continue
Is the government discouraging the professionals to start a micro business and want them
to just get a job as an employee instead? Im just asking. I think professionals also need aid
from the government when it comes to entrepreneurship especially that they have the
skills, knowledge, and potential to succeed in business. Besides, professionals, having
incurred a lot of money to review and pass the licensure exams, may not have any money
left to start an enterprise. So why exclude them?
Anyway, the DOF Department Order No. 17-04 also provides that, an enterprise can only
qualify for registration if it is not a branch, subsidiary, division or office of a large scale
enterprise and its policies and business modus operandi are not determined by a large scale
enterprise or by persons who are not owners or employees of the enterprise (i.e.,
franchises). So if you are a franchisee, you are not eligible to register as a BMBE.
In other words, a business or activity may be eligible to register as BMBE if they meet the
following criteria:
1. The business enterprise is engaged in production, processing, or manufacturing of
products, including agro-processing, as well as trading and services.
2. The business enterprise has total assets of P3 million or less including those arising from
loans but excluding the land on which the plant and equipment are located.
3. The business enterprise or service provider, in connection with his or her exercise of
profession, is not a professional who is duly licensed by the government after having passed
a government licensure examination (e.g. accountant, lawyer, doctor, etc.).
4. The business enterprise is not a branch, subsidiary, division or office of a large scale
enterprise or it is not a franchisee.
A. For those with assets worth three hundred thousand pesos (P300,000) and less
1. Registration as a business entity or enterprise from the appropriate government agency
(e.g., Securities and Exchange Commission (SEC) registration in the case of corporation,
B. For those with assets worth more than three hundred thousand pesos (P300, 000) up to
three million pesos (P3,000,000.00)
1. Registration as a business entity as explained above in item A.1
2. Taxpayer Identification Number (TIN)
3. Certificate of Registration from the Bureau of Internal Revenue (BIR)
4. Mayors Permit or City/Municipal Business Permit
5. Sworn affidavit executed by the sole proprietor or the President of the enterprise, as the
case may be, that the enterprise is barangay-based and micro-business in nature and scope
6. Sworn Statement of Assets and Liabilities supported by pertinent documents
7. Pictures of the place of business and its assets, other than cash, receivables and
intangibles
8. Copy of Loan Contract/s, if any, and duly-notarized Certification of Amortization
Payments on the Loan
9. Income Tax Return (ITR).
Additional requirements for the renewal of BMBE registration:
C. For those with assets worth three hundred thousand pesos (P300,000) and less
1. Documents previously listed in item A.1 for new applicants with assets worth three
hundred thousand pesos and less
2. Annual Information Return (for the year immediately preceding the renewal of
registration) duly filed with the BIR, together with its attachments
D. For those with assets worth more than three hundred thousand pesos (P300,000) up to
three million pesos (P3,000,000.00)
1. Documents previously mentioned in item B.1-8
2. Annual Information Return (for the year immediately preceding the renewal of
registration) duly filed with the BIR, together with its attachments
Reference: RA 9178, R.A. 9501, DTI Department Administrative Order (DAO) No. 1, Series
of 2003, Department of Finance Department Order No. 17-04, Revenue Memorandum
COMMENTS
Question. since BMBEs are exempt of income tax, what happens to the WTX
imposed by clients who belong to the top 100? will I receive a rebate at the end of
the year? or should I state to client that I am exempt of income tax?
Reply
Mercy says
November 25, 2014 at 1:08 pm
Hi,Am lending money with 3% interest.I have a total asset if 300k now.should I
register?thanks
Reply
Hi, my parents has a small eatery (carenderia), is this kind of business part of
processing and manufacturing? Their assets are less 300k. So can they register?tnx
Reply
Aya says
July 13, 2015 at 7:44 am
Hi,
I am a CPA, and I have a laundry business. Our asset is below Php3M. Am I allowed
to apply for BMBE? Also, I am currently employed in an auditing firm, how am I
suppose to declare my income tax returns? Thanks!
Reply
Hello po Maam/Sir,
Paank po pag nkaregister na sa BIR ang business..pwede la ba apply as BMBE?
nameet po nmin lahat ng requirements for applicayion of BMBE. THANKS! Sana
mag reply kau
Reply
Hello po Maam/Sir,
Paano po pag nkaregister na sa BIR ang business..pwede pa ba apply as BMBE?
nameet po nmin lahat ng requirements for applicayion of BMBE. THANKS!
Sana mag reply kau
Reply
Hello po Maam/Sir,
Paano po pag nkaregister na sa BIR ang business..pwede pa ba apply as BMBE?
nameet po nmin lahat ng requirements for applicayion of BMBE. THANKS! Sana
mag reply kau
Reply
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