That is all good in theory, but it turns out that in most places, the BMBE
Law is the best-kept secret in town, especially in the city or municipal hall itself.
According to Domingo, the requirements from the municipal treasurer's office for a micro enterprise to register under the BMBE law is longer than registering for a corporation with the Securities and Exchange Commission.
It is worse than getting an SEC registration," said Domingo, who stressed that the BMBE is supposed to grant tax-free status to small barangay enterprises.
These privileges are as follows: income tax exemption from income arising from the operations of the enterprise; exemption from the coverage of the minimum wage law; priority to a special credit window set up specifically for the financing requirements of BMBEs
; and technology transfer, production and management training, and marketing assistance programs for BMBE
According to Lawrence Cabeltes, OIC chief of Assessment Section of Bureau of Internal Revenue (BIR) Revenue District Office 98 Cagayan de Oro City that income tax exemption for BMBEs are stipulated under the BIR Department of Finance (DOF) Department Order 17-04 dated 20 April 2004, which enumerates the guidelines to implement the registration of BMBE and the availment of tax incentives under Republic Act (RA) 9178.
However, BMBE does not include entities rendering services in connection with exercise of profession by a person duly licensed by the government after having passed a government licensure exam such as lawyers, doctors among others.
Under RA 9178, Dalaten said BMBE registrants will no longer be charged a fee of not more than P1, 000 to municipal or city local government because the DTI, through its Negosyo Center, can facilitate their registration and issue them a certificate of authority that is free of charge.
Aside from the facilitation of the BMBE registration, the business centers likewise give other services like providing information and services in training, financing and marketing, establishing and maintaining a databank that support business information requirements and monitoring and recommending business-process improvement for MSMEs, among others.
The orientation tackled the rationale of the program, its legal basis and related statutes, as well as matters such as the eligibility requirements and incentives of BMBE
registered micro, small and medium enterprises (MSMEs).
9178 or the BMBEs
Act of 2002, a BMBE
is referred to as any business entity or enterprises engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading, and services whose total assets, excluding land, shall not be more than P3 million.
Judith Seno, BIR Revenue District Officer, explained in details the guidelines and the process of availing incentives and tax exemptions a BMBEs
can avail of.
are business enterprises engaged in production, processing, or manufacturing of products, including agro-processing, as well as trading and services, with total assets of not more than P3 million.