Incentives now available to microenterprises

Underground microentrepreneurs are encouraged to make formal their businesses and avail of incentives available through the Barangay Micro-Business Enterprise (BMBE) Law.

Trade Undersecretary Zenaida Maglaya said micro enterprises who register 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, business assistance from other government institutions, as well as technology and marketing assistance.

She said formalizing their business would help microentrepreneurs in their operations, which in turn could provide employment to more Filipinos that will spur economic activities in the countryside.

“We highly encourage microenterprises to register their businesses and avail of the incentives under the BMBE Law,” Maglaya said.

Under Republic Act 9178 or the BMBEs Act of 2002, a microenterprise is referred to as any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agroprocessing, 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.

According to the DTI, 30.5 percent of total business establishments in the country are micro enterprises providing 62.8 percent or 2.37 million employment to Filipinos.

Since DTI started accepting applications in January 2016, a total of 28,531 micro enterprises have registered under BMBE as of end April this year.

DTI is the sole agency mandated to issue a certificate of authority to registered BMBEs at Negosyo Centers or at DTI offices.

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.