Incentives and Benefits of BMBE’s
What are the incentives that BMBEs will be receiving?
Registered BMBEs can avail of the following incentives:
- Income tax exemption from income arising from the operations of the
- Exemption from the coverage of the Minimum Wage Law (BMBE employees will still receive the same social security and health care benefits as other employees);
- Priority to a special credit window set up specifically for the financing requirements of BMBEs; and
- Technology transfer, production and management training, and marketing assistance programs for BMBE beneficiaries.
The LGUs are also encouraged to either reduce the amount of local taxes, fees, and charges imposed or exempt the BMBEs from local taxes, fees, and charges.
What are the agencies mandated to provide assistance in the areas of technology transfer, production and management training, marketing assistance?
The agencies concerned are the following:
- Department of Trade and Industry (DTI)
- Department of Science and Technology (DOST)
- University of the Philippines Institute for Small Scale Industries (UP-ISSI)
- Cooperative Development Authority (CDA)
- Technical Education and Skills Development Authority (TESDA)
- Technology and Livelihood Resource Center (TLRC)
What are the funding agencies designated to set up the special credit window for registered BMBEs?
The following government financial institutions will provide a special credit window for BMBEs:
- Land Bank of the Philippines;
- Development Bank of the Philippines;
- Small Business Guarantee and Finance Corporation;
- People’s Credit and Finance Corporation;
- Quedan and Rural Credit Guarantee Corporation;
- Government Service Insurance System (for members only);
- Social Security System (for members only)
Who may avail of the special credit window for BMBEs?
Only registered BMBEs may take advantage of the credit facility and other benefits granted under the law. This means that the enterprise must first have a Certificate of Authority which authorizes it to operate as a BMBE.