R.A 9178
This is the official name of R.A. 9178
Barangay Micro Business Enterprises (BMBEs) Act of 2002
This is the biggest tax perk that a BMBE enjoys from its operations.
Income Tax Exemption
This is the official title of R.A. 9501.
Magna Carta for Micro, Small and Medium Enterprises
This government body was strengthened under R.A. 9501 to coordinate MSME programs.
MSMED Council (Micro, Small and Medium Enterprise Development Council)
A sari-sari store or a sidewalk vendor is a perfect example of this type of enterprise under the law.
Barangay Micro Business Enterprise (BMBE)
True or False: A BMBE is exempt from paying all types of taxes, including VAT.
False (Only income tax is exempted)
This law amended the original MSME Magna Carta (R.A. 6977) and raised the asset ceiling for micro enterprises.
R.A. 9501
This is the government's lead agency for promoting MSME development.
Department of Trade and Industry (DTI)
To qualify as a BMBE, a business's total assets must not exceed this amount, excluding land
Three Million Pesos (P3,000,000.00)
This asset is specifically excluded when computing the total asset size for MSME classification.
Land
Under R.A. 9501, a business with assets of P5 million (excluding land) falls under this classification.
Small Enterprise
This term refers to the mandated portion of a bank's loan portfolio that must go to MSMEs.
Mandatory Credit Allocation
This government agency is primarily responsible for accepting and processing BMBE registrations.
Department of Trade and Industry (DTI)
R.A. 9501 aims to provide MSMEs with better access to financing, technology, and this important business need.
Market access
The asset ceiling for a "medium" enterprise under R.A. 9501 is this amount.
P100,000,000.00
R.A. 9501 mandates that lending institutions allocate this percentage of their total loan portfolio to MSMEs.
10% (8% to micro/small, 2% to medium)
This type of business professional is specifically disqualified from registering as a BMBE.
Licensed professional (e.g., doctor, lawyer, dentist) under R.A. 9178
While BMBEs are automatically classified as micro enterprises, they enjoy this specific tax privilege that regular micro enterprises registered only under R.A. 9501 do NOT automatically receive.
Income Tax Exemption
This is the asset range for a business classified as "micro" under R.A. 9501.
P3,000,000.00 and below (excluding land)
This specific type of lending facility must be established by banks to serve MSMEs.
Special Credit Window