RA 9178
AN ACT TO PROMOTE THE
ESTABLISHMENT OF BARANGAY
MICRO BUSINESS ENTERPRISES
(BMBES), PROVIDING INCENTIVES
AND BENEFITS THEREFOR, AND FOR
OTHER PURPOSES
Rahul Humpal
Republic Act No. 9178
Also Known as BARANGAY MICRO BUSINESS
ENTERPRISES (BMBEs) ACT OF 2002
BMBE any business entity or enterprise
engaged in the production, processing or
manufacturing of products or commodities,
including agro-processing, trading and
services, whose total assets including those
arising from loans but exclusive of the land on
which the particular business entity's office,
BMBE Definition
Any business entity or enterprise engaged in the
production, processing or manufacturing of products
or commodities, including agro-processing, trading
and services
Total assets EXCLUDING land on which business is
situated amount up to P3,000,000
Certificate of Authority - the certificate issued
granting the authority to the registered BMBE to
operate and be entitled to the benefits and privileges
accorded thereto
Registration and Operation
The Office of the Treasurer of each city or
municipality shall register the BMBE's and issue
a Certificate of Authority to enable the BMBE to
avail of the benefits under this Act.
Processing time: Within 15 working days
Charges: Free however, LGUs may opt to
charge a FEE RENEWAL to defray administrative
costs of monitoring and registering BMBEs
Registration and Operation
Certificate of Authority is valid for TWO
years and is renewable for TWO years on
every renewal
The BMBE shall report to the city or
municipality of any changer in the status
of its ownership structure, and shall
surrender the original copy of the BMBE
Certificate of Authority for notation of the
transfer.
Incentives and Benefits
Section 7 Exemption from Taxes and
Fees
All BMBEs shall be exempt from tax for
income arising from the operations of
the enterprise.
The LGUs are encouraged either to
reduce the amount of local taxes, fees
and charges imposed or to exempt
BMBEs from local taxes, fees and
charges.
Incentives and Benefits
Section 8 Exemption from Coverage of the
Minimum Wage Law
The BMBEs shall be exempt from the
coverage of the Minimum Wage
Law:Provided,That all employees covered
under this Act shall be entitled to the same
benefits given to any regular employee
such as social security and healthcare
benefits.
Incentives and Benefits
Section 9 Credit Delivery
LBP, DBP, SBGFC, PCFC shall set up a special
credit window that will service the financing
needs of BMBEs registered under this Act
consistent with the Banko Sentral ng Pilipinas
(BSP) policies
GSIS, SSS shall likewise set up a special credit
window that will serve the financing needs of
their respective members who wish to establish
a BMBE
Incentives and Benefits
Section 10 Technology Transfer, Production and
Management Training, and Marketing Assistance
A BMBE Development Fund shall be set up with an
endowment of Three Hundred Million pesos
(P300,000,000.00) from PAGCOR
DTI, DOST, UP ISSI, CDA, TESDA, and TLRC may avail of
the said Fund for technology transfer, production and
management training and marketing assistance to
BMBEs
The DTI, in coordination with the private sector and nongovernment organization (NGOs), shall explore the
Penalty and Other
Provisions
Penalty Whoever violates provisions of
this Act will be punished by a fine of
P25,000 to P50,000 and suffer
imprisonment of 6 months to 2 years
Annual Report DILG, DTI, and BSP shall
submit an annual report to the Congress
on the status of implementation of this
Act
Quiz: True or False
1.
2.
3.
4.
5.
An entity is considered to be BMBE when assets
including land on which the business is situated
amount up to P3 Million
Processing and Registration of a BMBE can be done
within 15 working days
BMBEs are totally exempted from local taxes at all
times
Violators of this Act will be fined an amount of
25,000 to 50,000 pesos plus 6 months to 2 years of
imprisonment
A Certificate of authority has a life of 3 years and is
renewable
