UECRSS

UECRSS

TAXATION M.V.U. SIA

NT05 – BARANGAY MICRO BUSINESS ENTERPRISES (BMBES) MAY 2018 BATCH

LECTURE NOTES

Page 1 of 1 TAX.NT05
 The Municipal or City D. EXEMPTION FROM
A. BARANGAY MICRO Mayor may appoint a GROSS RECEIPTS
BUSINESS BMBE Registration TAX OF CERTAIN
ENTERPRISE, Officer who shall be INSTITUTIONS (SEC.
DEFINED (SEC. 3, under the Office of the 9, R.A. 9178)
R.A. 9178) Treasurer. Local
government units Any existing laws to
"Barangay Micro (LGUs) are encouraged the contrary
Business Enterprise," to establish a One- notwithstanding,
hereinafter referred to Stop-Business interests, commissions
as BMBE, refers to any Registration Center to and discounts derived
business entity or handle the efficient from the loans by the
enterprise engaged in registration and Land Bank of the
the production, processing of Philippines (LBP),
processing or permits/licenses of Development Bank of
manufacturing of BMBEs. Likewise, LGUs the Philippines (DBP),
products or shall make a periodic People’s Credit and
commodities, including evaluation of the Finance Corporation
agro-processing, BMBEs' financial status (PCFC) and Small
trading and services, for monitoring and Business Guarantee
whose total assets reporting purposes. and Finance
including those arising Corporation (SBGFC)
from loans but The LGUs shall issue granted to BMBEs as
exclusive of the land the Certificate of well as loans extended
on which the particular Authority promptly and by the GSIS and SSS
business entity's office, free of charge. to their respective
plant and equipment However, to defray the member-employees
are situated, shall not administrative costs of under this Act shall be
be more than Three registering and exempt from gross
Million Pesos monitoring the BMBEs, receipts tax (GRT).
(P3,000,000.00). The the LGUs may charge a
above definition shall fee not exceeding One
be subject to review Thousand Pesos
and upward (P1,000.00).
adjustment by the
SMED Council, as The Certificate of
mandated under Authority shall be
Republic Act No. 6977, effective for a period of
as amended by two (2) years,
Republic Act No. 8289. renewable for a period
of two (2) years for
For the purpose of this every renewal.
Act, "services" shall
exclude those rendered As much as possible,
by any one, who is BMBEs shall be subject
duly licensed by the to minimal
government after bureaucratic
having passed a requirements and
government licensure reasonable fees and
examination, in charges.
connection with the
exercise of one's C. EXEMPTION FROM
profession. TAXES AND FEES
(SEC. 7, R.A. 9178)
B. REGISTRATION AND
FEES (SEC. 4, R.A. All BMBEs shall be
9178) exempt from income
tax for income arising
The Office of the from the operations of
Treasurer of each city the enterprise.
or municipality shall
register the BMBEs and
issue a Certificate of
Authority to enable the
BMBE to avail of the The LGUs are
benefits under this Act. encouraged either to
Any such application reduce the amount of
shall be processed local taxes, fees and
within fifteen (15) charges imposed or to
working days upon exempt the BMBEs
submission of complete from local taxes, fees
documents. Otherwise, and charges.
the BMBEs shall be
deemed registered.