from the operations of the enterprise Exemption from the coverage of the Minimum Wage Law (BMBE employees will still receive the same social security and health care benefits as other employees Priority to a special credit window set up specifically for the financing requirements of BMBEs; and Technology transfer, production and management training, and marketing assistance programs for BMBEs beneficiaries
Income tax exemption
What are the steps in availing the income tax exemption? 1. Register with the BIR Revenue District Office (RDO) where the principal office or place of business is located 2. Submit the necessary documents
Income tax exemption
What are the documents to be submitted to the BIR to avail of Income Tax Exemption? 1. A copy of the BMBEs Certificate of Authority 2. Sworn Statement of Assets of the BMBE and/or its affiliates, supported by pertinent documents 3. Certified list of branches, sales outlets, place of production, warehouses and storage facilities 4. Certified list of affiliates 5. Latest audited Financial Statement or Account Information Form or its equivalent
Income tax exemption
What documents should be filed with BIR by an income tax exempt BMBE? In lieu of an Income Tax Return, Annual Information Return Filed on or before the 15th day of the 4th month after the close of the taxable year Contains data from its financial statement and Sworn Statement of Assets Owned and/or Used
Income tax exemption
Is the Income Tax Exemption Privilege of a BMBE irrevocable? No. It may be revoked for any of the following reasons: 1. Transfer of place of business 2. Value of its total assets exceeds Php 3M 3. Voluntary surrender of the Certificate of Authority 4. Death of the registered individual owner of the BMBE; violation or non-compliance with the provisions of R.A. 9178 5. Merger of consolidation with an entity which is not eligible to be a BMBE 6. Sale or transfer of the BMBE, if it is a sole proprietorship without prejudice to the transferee applying for registration 7. Submission of fake or falsified documents 8. Retirement from business, or cessation/suspension of operations for one year 9. Making false or omitting required declarations of statements.
Exemption from coverage of the
Minimum Wage Law How can a BMBE avail of the exemption from the coverage of the minimum wage law? Once the BMBE is registered and issued with a Certificate of Authority by the Municipal or City Treasurer, it is automatically exempted from the minimum wage law.
Exemption from coverage of the
Minimum Wage Law What is the effect of the law on the wages of existing/newly hired employees? 1. Existing employees Continue to receive their wages, allowances, and other benefits
2. Newly hired employees
Exempted from the coverage of the minimum wage law BMBE workers shall continue to be covered by applicable labor laws and regulations, including the nondiminution rule on existing wages and benefits.
Exemption from coverage of the
Minimum Wage Law Is the exemption from the coverage of the minimum wage law prospective in nature? Yes. Thus, in connection with the previous question, an enterprises exemption from the coverage of the minimum wage law can only be applied to employees hired after its registration as a BMBE.
Exemption from coverage of the
Minimum Wage Law How much should a BMBE worker be paid for his service? It depends between the employer and the worker. They shall mutually agree on the applicable wage rate.