REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE

April 5, 2017
MEMORANDUM TO:
Regional Directors
Revenue District Officers
Other Concerned Officers

SUBJECT: FILING OF INCOME TAX RETURNS BY BARANGAY MICRO

BUSINESS ENTERPRISES (BMBE) TAXPAYERS

This refers to Business Taxpayers claiming tax exemption from income tax under the
Barangay Micro Business Enterprise (BMBE) Act of 2002 (R.A.9178). It was the concem of
some Non-Government Organizations (NGO) coordinating with Department of Trade and
Industry (DTI) that income tax returns to be filed by BMBE Taxpayers may not be
accommodated/accepted by the Revenue District Offices (RDOs) during the filing of tax returns.

ln line therewith, please be informed of the hereunder quoted provision of the

Deparlment Order No. 17-04 dated April 20. 2004, entitled "Guidelines to Implement the
Registration of Barangay Micro Business Enterprises and the Availment of Tax Incentives Under
R.A.9178, Otherwise Known as the "Barangay Micro Business Enterprises (BMBEs) Act of
2002":

"Section 3. Availment of Tax Incentives. - For purposes of availing of the tax

incentives. the BMBE shall register as such BMBE with the BIR RDO where the
principal otfice or place of business of the BMBE is located. Its application for
registration shall be supported by the following documents:

(a) Copy of the BMBE's Certificate of Authority duly authenticated by the

Office of the City or Municipal Treasurer;

(b) Sworn Statement of the values of assets owned andlor used/to be used by
the BMBE and/or its affiliates reflecting the current values thereof. The Swom
Statement shall be supporled by pertinent information and documents such as:

1) Acquisition cost. date of acquisition and depreciated value tbr

existing assets
2) Invoices andior otlcial receipts for newly-acquired assets not
yet depreciated:
3) Duly-notarized copy of Contract of Lease for assets used in the
conduct of business covered by lease agreement; and
4) Copy of Loan Contract/s, if any, and Duly-Notarized Certiflcation
of Amortization Payments on the Loan
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 (c) Certified list of branches, sales outlets, places of production. warehouse and
storage places. or such other f-acility owned and/or operated by the BMBE indicating
their respective addresses, w'hether located in the same municipality or city where the
principal place of business is located, or elsewhere.

(d) Ceftified list of affiliates, indicating addresses. line of business and

responsible offi cers thereof;

(e) Latest Audited Financial Statement. or Account Infbrmation Form or its

equivalent containing data lifted from audited f-rnancial statements."

It is hereby advised however, that tax returns to be flled by the taxpayers claiming to be
covered by BMBE shall be accepted whether taxes are paid or not subject to post audit/
verification of their compliance with Section 3 of Department Order No. 17-04.

For your guidance and immediate compliance.

ffi
CAESAR R. DULAY
Commissioner of Internal Revenue

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