Question & AnswerQ&A (Republic Act No. 9178)
The short title of Republic Act No. 9178 is the "Barangay Micro Business Enterprises (BMBEs) Act of 2002."
The State declares it as policy to hasten the country's economic development by encouraging the formation and growth of barangay micro business enterprises, integrating them into the mainstream economy, and granting them incentives and benefits to generate employment and alleviate poverty.
A BMBE is any business entity engaged in production, processing, manufacturing, trading or services whose total assets including loans but excluding land on which business assets are situated, do not exceed Three Million Pesos (P3,000,000.00). Services rendered by licensed professionals after licensure examination are excluded.
It is a certificate issued to a registered BMBE granting the authority to operate and avail of the benefits and privileges under the Act.
The Office of the Treasurer of each city or municipality is responsible for registering BMBEs and issuing the Certificate of Authority.
The application must be processed within fifteen (15) working days upon submission of complete documents. If not processed within this timeframe, the BMBE is deemed registered.
Yes, all BMBEs are exempt from income tax on income arising from their operations.
No, BMBEs are exempt from the Minimum Wage Law, but employees are entitled to social security and healthcare benefits.
A violator shall be fined not less than Twenty-five Thousand Pesos (P25,000.00) but not more than Fifty Thousand Pesos (P50,000.00) and imprisoned for six (6) months to two (2) years. Government financial institutions not complying with credit provisions may incur additional fines and sanctions.
Special credit windows are to be set up by Land Bank of the Philippines, Development Bank of the Philippines, Small Business Guarantee and Finance Corporation, People's Credit and Finance Corporation, GSIS, and SSS to service financing needs of registered BMBEs.
LGUs are to register BMBEs, may charge registration fees up to One Thousand Pesos (P1,000), issue Certificates of Authority, monitor BMBE financial status periodically, and possibly create One-Stop-Business Registration Centers for efficient processing.
Yes, a BMBE can transfer ownership. The BMBE must report the change to the city or municipality and surrender its original Certificate of Authority for notation of the transfer.
A BMBE Development Fund with an endowment of Three Hundred Million Pesos (P300,000,000.00) is set up to provide technology transfer, production and management training, and marketing assistance, administered by the SMED Council and implemented through government agencies.
Assets refer to all kinds of real or personal properties owned and used by the BMBE for business, excluding the land where the BMBE’s office, plant, and equipment are situated, for purposes of tax exemption.
Yes, the Department of the Interior and Local Government, Department of Trade and Industry, and Bangko Sentral ng Pilipinas are required to submit annual reports to Congress on the Act’s implementation status.