Title
Clarification on Marginal Income Earners Registration
Law
Bir Revenue Memorandum Circular No. 7-2014
Decision Date
Feb 5, 2014
The Bureau of Internal Revenue clarifies registration and compliance requirements for Marginal Income Earners, defined as self-employed individuals with annual gross sales not exceeding P100,000, while exempting them from certain taxes and fees.
A

Registration Requirements

  • MIEs must register with the Bureau of Internal Revenue (BIR) using BIR Form 1901.
  • Required documentary submissions include:
    • Sworn Statement of Income for the year.
    • NSO Certified or Local Civil Registry Birth Certificate.
  • Registration with the BIR exempts the MIE from paying the Annual Registration Fee (ARF).

Compliance Requirements

  • MIEs are required to register their Books of Accounts, which may include simplified books such as a two-column journal.
  • They must issue registered principal receipts or sales invoices in accordance with the guidelines under Revenue Memorandum Order (RMO) 12-2013.
  • MIEs must file and pay their Annual Income Tax Return using BIR Form 1701, consistent with other self-employed individuals.
  • They are exempt from paying business taxes such as Value Added Tax (VAT) or any percentage tax.

Role of BIR District Office

  • The BIR District Office evaluates registration applications and issues the Certificate of Registration.
  • It ensures compliance with the registration of Books of Accounts and the issuance of Authority to Print for principal receipts or sales invoices.

Administrative and Enforcement Provisions

  • All internal revenue officers and employees are mandated to disseminate this Revenue Memorandum Circular widely for awareness and compliance.

This circular clarifies and enforces the registration and compliance obligations specific to Marginal Income Earners under Revenue Regulations No. 7-2012, providing relief from certain tax payments while maintaining essential registration and reporting duties.


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