Business Incentives for Barangay Micro-Business Enterprises (BMBEs)

Pursuant to the policies of Republic Act 9178 otherwise known as the “The Barangay Micro-Business Enterprises (BMBEs) of 2002, the city government is encouraging business owners to register as BMBEs to avail of tax incentives.

“Duly-registered BMBEs are given tax incentives to encourage the formation and growth of barangay micro-business enterprises that utilize the Filipinos’ own entrepreneurial talents and resources,” said Mayor James “Bong” Gordon, Jr.

According to the implementing rules of the said act, the Office of the Treasurer of each city or municipality shall register BMBEs and issue a Certificate of Authority (CA) to enable the BMBE to avail of incentives provided that only one CA shall be issued for each BMBE.

“An enterprise can be considered as BMBE if it is barangay based, meaning, if the majority of its employees are residents of the city and if the principal operations of business is also confined within the territorial jurisdiction of the city,” explained Marcelino Andawi, Olongapo City Treasurer. “Moreover, the principal activity of a BMBE must include the application of a particular skill or use of raw materials predominantly sourced from Olongapo,” Andawi added.

Andawi also stressed that aside from being barangay based, a potential BMBE must be micro-business in nature and scope whose principal activity is for livelihood as determined by the Small and Medium Enterprise Development Council or by the Department of Trade and Industry (DTI) as priority area for development or government assistance.

On the other hand, applicants of BMBE must not be a branch, subsidiary, division or office of a large scale enterprise and an enterprise’ policies must not be under the mandates of a large scale business or by person(s) who are not owners or employees of an applying BMBE.

The City Treasurer’s Office requires registrants of BMBEs to submit the following documents:

1. Registration as a business entity or enterprise from the appropriate government agency such as SEC registration for corporations, DTI for sole proprietorship and Cooperative Development Authority (CDA) permit for cooperatives;

2. Taxpayer Identification Number (TIN);

3. Certificate of registration from the Bureau of Internal Revenue (BIR);

4. Mayor’s permit

5. Sworn affidavit executed by the sole proprietor or President of the Enterprise, as case may be, that the enterprise is barangay based and micro-business in nature and scope;

6. Pictures of the place of business and its assets;

7. Copy of Loan contracts, if any, and duly-notarized certification of amortization payments on the loan; and

8. Income Tax Return (ITR) with proof that it has been duly filed with BIR, including attachments, if any (for existing business only).

Interested BMBE registrants may visit the City Treasurer’s Office at the ground floor of Olongapo City Hall or call 222-2607 for application inquiries or email the said office at treasury_gapo@yahoo.com.

Pao/sara