This article is for business owners and people who want to learn about Barangay Micro Business Enterprises (BMBE).
After reading this free guide, your will learn about:
1. What are the Benefits of Barangay Micro Business Enterprises (BMBE)?
2. Who are NOT qualified to register as Barangay Micro Business Enterprises (BMBE)?
3. How to Register Barangay Micro Business Enterprises (BMBE) in DTI?
4. How to Register Barangay Micro Business Enterprises (BMBE) in BIR?
5. What are the Clarifications Regarding Barangay Micro Business Enterprises (BMBE)?
1. What are the Benefits of Barangay Micro Business Enterprises (BMBE)?
A. Income tax exemption
B. Exemption from the coverage of the Minimum Wage Law
2. Who are NOT qualified to register as Barangay Micro Business Enterprises?
A. Franchised Business
B. Business that has more than 1 branch.
C. Business with P3,000,000 and above total assets, including those arising from loans but not the land on which the plant and equipment are located.
D. Those who are registered as professional or Self-Employed.
3. How to Register Barangay Micro Business Enterprises (BMBE) in DTI?
A. Application for Registration as Barangay Micro Business Enterprises (BMBE) – BMBE Form 01
B. DTI Certificate of Business Name Registration
C. Mayor’s Business Permit
D. Breakdown of Assets and/or Latest Financial Statement
E. Picture of the Office, Stall or Facilities.
F. ID of the Owner
G. Special Power of Attorney and ID of the Authorized Representative if applicable.
4. How to Register Barangay Micro Business Enterprises (BMBE) in BIR?
After you get your BMBE Certificate of Authority from the DTI, you need to continue registering your business with the BIR RDO where the business is located.
The BMBE application or registration shall be supported by the following documents:
A. Application for Registration for Registration Information Update / Correction / Cancellation (BIR Form 1905)
B. DTI’s BMBE Certificate of Authority
C. Notarized Sworn Statement of Capital. The sworn statement shall be supported by breakdown of Assets:
a. Acquisition Date
b. Asset Name
c. Acquisition Cost
d. Accumulated Depreciation
e. Book Value
D. Notarized Affidavit that the business has no affiliates, branches, sales outlets, places of production, warehouse and storage places, or such other facility owned and/or operated.
E. Latest Annual Income Tax Return from last year and latest Quarterly Income Tax Return from current year together with Audited Financial Statement if applicable.
F. BIR Certificate of Registration
G. Notarized Special Power of Attorney (SPA) together with the ID of the Owner and Authorized Representative if applicable.
5. What are the Clarification Regarding Barangay Micro Business Enterprises (BMBE)
A. You’re only exempted in PAYING your Income tax but you’re NOT exempted in FILING your Income Tax Return (ITR).
B. You’re NOT exempted in filing and paying other taxes like Business Tax and Withholding Tax.
C. You’re NOT exempted in registering and renewing your Mayor’s Business Permit.
D. BMBE employees will still receive the same SSS, Philhealth, and Pag-IBIG like other employees.
E. Your Barangay Micro Business Enterprise (BMBE) is renewed every 2 years.
References:
A. Barangay Micro Business Enterprises (BMBEs) Act of 2002 (R.A. 9178)
What’s Next?
If you have questions and comments regarding tax, accounting, and business registrations, you can contact us here.
