micro enterprises to avail of incentives under BMBE Law
May 18, 2018
MAKATI CITY – The
Department of Trade and Industry (DTI) encouraged underground micro
entrepreneurs to make formal their businesses and avail incentives
readily available to them through the Barangay Micro-Business
Enterprise (BMBE) Law.
“We highly encourage micro
enterprises to register their businesses and avail of the incentives
under the BMBE Law,” DTI Regional Operations Group Undersecretary
Zenaida Maglaya said.
Maglaya explained that
micro enterprises who have registered BMBEs can avail of government
incentives that include exemption from payment of income tax for
income arising from the operation of the enterprise, exemption from
the coverage of the minimum wage law, special credit window from
government financing institutions that will service financing needs
of BMBEs, business assistance from other government institutions, as
well as technology and marketing assistance.
Under Republic Act No.
9178 or the BMBEs Act of 2002, a micro enterprise is referred to as
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, excluding
land, shall not be more than P3 million. Such assets shall include
those arising from loans but not the land on which the plant and
equipment are located.
Per statistics, 30.5% of
99.6% of total business establishments are micro enterprises (MSMEs).
Micro enterprises also provide 62.8% or 2,372,678 employment to
BMBE certificates are
registered free of charge at the Department of Trade and Industry
(DTI) offices or Negosyo Centers. To date, there are over 800
Negosyo Centers nationwide that assist micro enterprises to
facilitate BMBE applicants.
A total of 28,531 micro
enterprises have registered under BMBE as of April 31, 2018 since
DTI started accepting applications in January 2016.
Maglaya said formalization
of business will not only help the entrepreneur but will also
provide benefits to business and employment to Filipinos, which, in
turn, will spur economic activities in the countryside.
The DTI issued Department
Administrative Order (DAO) No. 16-01 last April 22, 2016 which
provides guidelines on registering BMBEs at Negosyo Centers. Under
DAO 16-01, DTI is the sole agency which shall issue a Certificate of
Authority (CA) to registered BMBEs at Negosyo Centers or at DTI
Prior to the issuance of
the DAO, BMBEs must register at the city or municipal treasurer’s
office where the business is located.
Republic Act 9178 or the
BMBE Act of 2002 recognizes the role of BMBEs as an essential
driving force for the country’s economic development. According to
the law, BMBEs are “seedbeds of Filipino entrepreneurial talents and
strengthening them would increase job generation, provide livelihood
and augment Filipinos’ quality of life.”