CCP Computer Technologies, Inc.

January 17, 2008 BIR RULING [DA-017-08] RA 9178; DA-356-2004 CCP Computer Technologies, Inc. Unit 3, #15 Laguna Street Bago Bantay, Quezon City Attention: Rodel R. Etorma Proprietor Gentlemen : This refers to your letter dated September 12, 2007, requesting exemption from the payment of income tax pursuant to the provisions of Republic Act (RA) No. 9178, otherwise known as "An Act to Promote the Establishment of Barangay Micro Business Enterprises (BMBEs) Providing Incentives and Benefits therefor and for other Purposes"; It is represented that CCP Computer Technologies, Inc. (CCP Computer Tech., for short), is a registered Barangay Micro Business Enterprise (BMBEs) engaged in the retail of office machines, equipments, computers and renting of office machinery and equipment; that the said business was registered on March 25, 2002; that it has been awarded a BMBE Certificate of Authority # 00330 by the Office of the City Treasurer, Quezon City on March 21, 2006; and that the said Certificate will expire on March 21, 2008. SEHaDI In reply, please be informed that Sections 3 (a) and 7 of RA 9178 provide, viz .: "SEC. 3. Definition of Terms . As used in the Act, the following terms shall mean: "(a) Barangay Micro Business Enterprise, hereinafter referred to as BMBE, refers to any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including those arising from loans by exclusive of the land on which the particular business entity's office, plant and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00). The definition shall be subject to review and upward adjustment by the SMED Council, as mandated under Republic Act. No. 6977, as amended by Republic Act No. 8289. IDESTH xxx xxx xxx "SEC. 7. Exemption from Taxes and Fees . All BMBEs shall be exempt from income tax for income arising from the operations of the enterprise. The LGUs are encouraged either to reduce the amount of local taxes, fees and charges imposed or to exempt the BMBEs from local taxes, fees and charges." In as much as CCP Computer Tech. is a registered BMBE and was awarded BMBE Certificate of Authority by the Office of the City Treasurer, Quezon City, it is therefore exempt from the payment of income tax for income arising from the operations of the enterprise for a period of two (2) years from March 21, 2006 or until March 21, 2008. (BIR Ruling No. 356-2004 dated June 25, 2004) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. DCESaI Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service