Simplifying the Documentation Requirement for the Registration of BMBEs with Assets of P300,000 or Less, Amending for the Purpose Section 3, Rule 2 of Department Order No. 17-04 Governing the Guidelines to Implement the Registration of Barangay Micro Business Enterprises and the Availment of Tax Incentives under R.A. 9178

December 16, 2005 DOF DEPARTMENT ORDER NO. 031-05 SIMPLIFYING THE DOCUMENTATION REQUIREMENT FOR THE REGISTRATION OF BMBEs WITH ASSETS OF P300,000 OR LESS, AMENDING FOR THE PURPOSE SECTION 3, RULE 2 OF DEPARTMENT ORDER NO. 17-04 GOVERNING THE GUIDELINES TO IMPLEMENT THE REGISTRATION OF BARANGAY MICRO BUSINESS ENTERPRISES AND THE AVAILMENT OF TAX INCENTIVES UNDER R.A. 9178 SECTION 1. Section 3 of Rule 2 of Department Order No. 17-04 is hereby amended to read as follows: TAIaHE " Sec. 3. Documents to be Submitted by the Applicant-Business Entity or Enterprise. To determine the value of the assets of the business entity or enterprise applying for registration as a BMBE, the Office of the City of Municipal Treasurer shall require the submission of the following documents, together with the duly-accomplished Application for Registration or BMBE Form 01: (a) FOR THOSE WITH ASSETS WORTH THREE HUNDRED THOUSAND PESOS (P300,000) AND LESS 1) FOR A NEW APPLICANT: i) REGISTRATION AS A BUSINESS ENTITY OR ENTERPRISE FROM THE APPROPRIATE GOVERNMENT AGENCY ( E.G. , SECURITIES AND EXCHANGE COMMISSION (SEC) REGISTRATION IN THE CASE OF CORPORATION, PARTNERSHIP OR ASSOCIATION; COOPERATIVE DEVELOPMENT AUTHORITY (CDA) REGISTRATION IN THE CASE OF COOPERATIVE; DEPARTMENT OF TRADE AND INDUSTRY (DTI) BUSINESS NAME REGISTRATION IN THE CASE OF SOLE PROPRIETORSHIP); AND ii) MAYOR'S PERMIT OR CITY/MUNICIPAL BUSINESS PERMIT. cDHAES 2) FOR RENEWAL OF REGISTRATION: i) DOCUMENTS LISTED IN SECTION 3 (a) (1) (i) TO (ii), INCLUSIVE; AND ii) ANNUAL INFORMATION RETURN (FOR THE YEAR IMMEDIATELY PRECEDING THE RENEWAL OF REGISTRATION) DULY FILED WITH THE BIR, TOGETHER WITH ITS ATTACHMENTS. (b) FOR THOSE WITH ASSETS WORTH MORE THAN THREE HUNDRED THOUSAND PESOS (P300,000) UP TO THREE MILLION PESOS (P3,000,000.00) [(a)] 1) For a new applicant: [1)] i) Registration as a business entity or enterprise from the appropriate government agency ( e.g. , Securities and Exchange Commission (SEC) registration in the case of corporation, partnership or association; Cooperatives Development Authority (CDA) registration in the case of cooperative; Department of Trade and Industry (DTI) business name registration in the case of sole proprietorship); [2)] ii) Taxpayer Identification Number (TIN); [3)] iii) Certificate of Registration from the Bureau of Internal Revenue (BIR); [4)] iv) Mayor's Permit or City/Municipal Business Permit; [5)] v) Sworn affidavit executed by the sole proprietor or the President of the enterprise, as the case may be, that the enterprise is barangay-based and micro-business in nature and scope, in substantially the form attached as Annex "A"; [6)] vi) Sworn Statement of Assets and Liabilities showing the values of assets owned and to be used in the conduct of business, which shall be supported by pertinent information such as the date of acquisition, acquisition cost and depreciated value. In the case of asset acquired during the year of registration, it shall be supported by any of the following: [i)] vi.i) invoice ASEcHI [ii)] vi.ii) official receipt [iii)] vi.iii) contract document or deed [7)] vii) Pictures of the place of business and its assets, other than cash, receivables and intangibles; [8)] viii) Copy of Loan Contract/s, if any, and Duly-Notarized Certification of Amortization Payments on the load; and [9)] ix) Income Tax Return (ITR) with proof that it has been duly filed with the BIR, including attachments, if any, (for an existing business only). [(b)] 2) For renewal of registration: [1)] i) Documents listed in [Section 3(a)(1) to (8)] SECTION 3(b)(1)(i) to (ix) , inclusive; and [2)] ii) Annual Information Return (for the year immediately preceding the renewal of registration) duly filed with the BIR, together with its attachments. The application for registration shall not be processed by the Office of the Treasurer until all documentary requirements as above set forth have been submitted." SECTION 2. This Order shall take effect after the 15th day following its publication in a newspaper of general circulation. Signed on this 20th day of December 2005, Manila, Philippines. (SGD.) MARGARITO B. TEVES Secretary of Finance