Definition and Scope of Countryside and Barangay Business Enterprises (CBBE)
- CBBEs are business entities, associations, or cooperatives registered under this Act.
- Must have no more than 20 employees at any time.
- Engaged in productive business enterprises recommended by the Department of Trade and Industry (DTI) provincial office.
- Excludes businesses primarily engaged in professional services, retailing, wholesaling, or trading.
- Assets at registration must not exceed P500,000 before financing.
- Principal office and operations must be located in the countryside as defined by the DTI.
Registration, Fees, and Tax Exemptions
- Upon registration, CBBEs pay a P250 fee to the local government unit for a license to operate.
- Exempt from all national and local taxes, license and building permit fees, and other business taxes except real property tax, capital gains tax, import duties, and taxes on imported articles.
- Income derived from CBBE operations is excluded from the individual income tax computation of owners/members.
- Exempt from government rules and regulations concerning assets and income directly related to the business operations.
- Starting the second year, CBBEs pay an annual fee based on their net assets:
- Up to P100,000: P1,000
- More than P100,000 up to P250,000: P2,500
- More than P250,000 up to P400,000: P4,000
- More than P400,000 up to P500,000: P5,000
- Use of brand names requires registration with the Bureau of Domestic Trade through DTI.
Use and Allocation of Collected Fees
- The annual CBBE fees are exclusively for the municipality or city.
- Fees must be used for developmental projects approved by the local council.
Juridical Personality and Operational Capacity
- Registered CBBEs acquire a juridical personality separate from their owners/members.
- They can own, dispose, or encumber properties; enter contracts; sue and be sued; and operate anywhere in the country.
Employment and Resource Utilization
- CBBEs are encouraged to recruit employees locally and utilize indigenous and existing resources in their operational areas.
Revocation, Forfeiture, and Penalties
- Benefits and exemptions can be forfeited after due notice and hearing if the CBBE or its officers violate the Act.
- Registration authority can be revoked if the CBBE fails to commence operations within 45 days without valid reason.
- Willful violation or acts defeating the provisions of the Act are punishable by fines ranging from P1,000 to P10,000.
- If a greater penalty exists under other laws, that penalty applies.
- Public officials committing violations face prosecution under relevant laws.
Duration of Benefits
- Exemptions and benefits apply for up to five years from registration.
- Registration must occur within five years from the Act's effectivity to avail of benefits.
Rulemaking and Implementation
- The Secretary of Trade and Industry, in coordination with the Secretaries of Finance, Labor, Health, and local government units, shall issue implementing rules within 120 days.
- Rules take effect 15 days after publication and notice.
Repealing Clause
- All laws, decrees, or regulations inconsistent with the Act are repealed or modified accordingly.
Separability Clause
- Declaring any part of the Act invalid does not affect the other provisions which remain in force.
Effectivity
- The Act took effect upon approval on December 14, 1989.