Question & AnswerQ&A (Republic Act No. 9178)
The short title is the "Barangay Micro Business Enterprises (BMBEs) Act of 2002."
The policy is to hasten economic development by encouraging the formation and growth of barangay micro business enterprises, integrating informal sector enterprises into the mainstream economy through government intervention and granting incentives to generate employment and alleviate poverty.
A BMBE is any business entity engaged in production, processing, manufacturing, trading, or services with total assets not exceeding Three Million Pesos (P3,000,000.00), excluding land on which the business operates. The definition excludes services rendered by licensed professionals.
Any natural or juridical person, cooperative, or association whose business meets the asset qualifications under Section 3(a) of the Act may apply for registration as a BMBE.
The Office of the Treasurer of each city or municipality is responsible for registering BMBEs and issuing Certificates of Authority.
If the application is not processed within fifteen (15) working days upon submission of complete documents, the BMBE shall be deemed registered.
Benefits include exemption from income tax on income arising from operations, exemption from the Minimum Wage Law coverage while still providing social security and healthcare benefits, and access to special credit windows set up by government financial institutions.
No, all BMBEs are exempt from income tax on income arising from their operations under the Act.
The penalty is a fine ranging from Twenty-five Thousand Pesos (P25,000.00) to Fifty Thousand Pesos (P50,000.00) and imprisonment from six (6) months to two (2) years.
The Secretary of the Department of Trade and Industry, in consultation with the Secretaries of the Department of the Interior and Local Government, Department of Finance, and the Governor of the Bangko Sentral ng Pilipinas (BSP), must formulate the rules and regulations.
The Certificate of Authority is valid for two (2) years and is renewable for additional two (2) year periods upon renewal.
Yes, BMBEs can transfer ownership, but they must report the change to the city or municipality and surrender the original Certificate of Authority for notation of the transfer.
No, BMBEs are exempt from the coverage of the Minimum Wage Law, provided their employees receive social security and healthcare benefits.
The Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), Small Business Guarantee and Finance Corporation (SBGFC), People's Credit and Finance Corporation (PCFC), Government Service Insurance System (GSIS), and Social Security System (SSS) are involved in providing credit windows.
The BMBE Development Fund, endowed with Three Hundred Million Pesos (P300,000,000.00) from PAGCOR, is for technology transfer, training, and marketing assistance for BMBEs, administered by the SMED Council.
Local government units (LGUs) are encouraged to establish these centers to facilitate efficient registration and processing of permits/licenses for BMBEs.
No, interests, commissions, and discounts from loans granted to BMBEs by specified government financial institutions are exempt from gross receipts tax.
For exemptions, 'assets' means all lands, properties, real or personal, owned and/or used by the BMBE to conduct business as defined by the SMED Council.
The Philippine Information Agency (PIA) in coordination with the Department of Labor and Employment (DOLE), Department of the Interior and Local Government (DILG), and the Department of Trade and Industry (DTI) are responsible.
The Bangko Sentral ng Pilipinas (BSP) shall impose administrative sanctions and penalties, including a fine of not less than Five Hundred Thousand Pesos (P500,000.00).