Income tax exemption for BMBE

How can I apply my business for income tax exemption? --- Last week, we mentioned that BMBE certification is a tax relief available to micro, small and medium enterprises.

But what are the qualifications to be BMBE certified?

Barangay Micro Business Enterprise (RA No. 9178) refers to a business entity (any person, natural or juridical, or cooperative, or association): a. Engaged in production, manufacturing of products, including agro-processing, trading and services (except services rendered by licensed professionals); and b. With total assets of not more than P3million (excluding the value of land where the business office is located).

Qualified business entities shall submit the following to the DTI Negosyo Center: 1.Duly filled up and signed BMBE Application Form; and 2.DTI registration for sole proprietorship; SEC registration for corporations, partnerships or association; CDA registration for cooperatives.

Within 15 days, the DTI should issue the Certificate of Authority which is renewable every 2 years.

Aside from the income tax exemption, what are the other benefits? 1. Exemption from the coverage of the Minimum Wage Law, provided, that all employees covered shall be entitled to the same benefits given to any regular employee such as social security and healthcare benefits; 2. Access to financial assistance by designated financial institutions; and 3. Access to training and technology transfer assistance by the government.

Yes, aside from the income tax relief you can get assistance from the government too. Have we mentioned that the application for BMBE certification is also free of charge? So, accomplish that form and apply if your business is qualified!

Source: RA No. 9178 https://lawphil.net/stat.../repacts/ra2002/ra_9178_2002.html

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