by Marcelo B. Lihgawon / PIA
LAGAWE, Ifugao – The Department of Trade and Industry is inviting entrepreneurs with an asset size of not more than P3 million to register at the nearest Negosyo Center or DTI office to avail of incentives.
Negosyo Center Business counselor Steve I. Domio said government incentives that registered Barangay Micro Business Enterprises (BMBE) can avail of are exemption from payment of income tax on income arising from the operation of the enterprise; exemption from the coverage of the minimum wage law; priority to a special credit window setup specifically for the financing requirements of BMBEs; and priority to technology transfer, production and management training, and marketing assistance programs.
To avail of tax incentives, the BMBE shall register with the Bureau of Internal Revenue. Application must be supported by submitting a copy of DTI-issued BMBE certificate of authority and other documents.
The tax incentive however do not exempt BMBEs from paying income and percentage taxes, and are required to issue receipts, maintain a books of accounts, and file an Annual Information Return for the year immediately preceding the renewal of registration with the BIR.
On the exemption from the coverage of the of minimun wage, the BMBE Law states that an agreement from the employer and employee will serve as contract on the agreed salary of the worker.
BMBE does not include entities rendering services in connection with the exercise of one’s profession by a person licensed by the government after having passed a government licensure exam such as lawyers, doctors, among others.
The DTI certificate of authority grants a registered BMBE license to operate and be entitled to all the benefits and privileges accorded thereto. The certificate is effective for two years commencing from the date of issuance and renewable every two years thereafter.
Based on the revised guidelines issued by the DTI under DTI DAO 16-01, s. 2016, any person, natural or juridical such as partnership, corporation, association, and cooperative, having the qualifications shall be eligible to register as BMBE.
There are 134 businesses that have already registered as BMBEs in the province.