BIR REVENUE MEMORANDUM CIRCULAR NO. 7-2014

: A Marginal Income Earner (MIE) is an individual whose business does not realize gross sales or receipts exceeding ₱100,000 in any 12-month period and is self-employed but not deriving compensation as an employee under an employer-employee relationship.
: No, licensed professionals, consultants, artists, sales agents, brokers and others similarly situated, including those whose income has been subjected to withholding tax, are not included as Marginal Income Earners.
: Activities that are principally for subsistence or livelihood, such as small sari-sari stores, small carinderias, single unit tricycle operators, and agricultural growers/producers selling directly to ultimate consumers, qualify an individual as an MIE.
: MIEs must register with the Bureau of Internal Revenue using BIR Form 1901 and submit a Sworn Statement of Income for the year and an NSO Certified or Local Civil Registry Birth Certificate.
: No, MIEs are exempted from the payment of the Annual Registration Fee.
: MIEs should register simplified books of accounts such as a two-column journal or other simplified books for daily expenses and revenues.
: Yes, MIEs must file and pay annual income tax returns using BIR Form 1701, similar to other self-employed individuals.
: No, MIEs are exempt from the payment of business taxes such as VAT or any Percentage Tax.