JC Noodle House

February 9, 2010 BIR RULING [DA-(OSL-003) 027-10] RA 9178; DA-442-2006 JC Noodle House Lower Ground Floor, Waltermart-Santa Rosa Bgy. Balibago, City of Santa Rosa Province of Laguna Attention: Leah Plata Aspacio Franchisee Gentlemen : This refers to the letter dated June 29, 2009 relative to your request for exemption from the payment of income tax pursuant to the provisions of Republic Act (R.A.) No. 9178. It is represented that pursuant to Republic Act No. 9178, otherwise known as "An Act to Promote the Establishment of Barangay Micro Business Enterprise, Providing Incentives and Benefits Therefor, and for Other Purposes," you were awarded the Certificate of Authority for Barangay Micro Business Enterprise last June 16, 2009 entitling you to all benefits and incentives subject to the terms and conditions set forth in the said law, which will expire on June 17, 2011. In reply, please be informed that Sections 3 (a) and 7 of R.A. 9178 provides, 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 enterprises engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but 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) subject to review and upward adjustment by the SMED Council, as mandated under Republic Act No. 6977, as amended by Republic Act No. 8289. ICHDca xxx xxx xxx "SEC. 7. Exemption from Taxes and Fees. All BMBE's 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." Inasmuch as JC NOODLE HOUSE is a registered BMBE and was awarded BMBE Certificate of Authority by the City of Santa Rosa, Province of Laguna, 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 June 16, 2009 or until June 17, 2011. It is required, however, for you to register with the Revenue District Office having jurisdiction over you. (BIR Ruling No. DA-442-2006 dated July 19, 2006) 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. Very truly yours, (SGD.) GREGORIO V. CABANTAC Deputy Commissioner Legal & Inspection Group