About this iReport
  • Not verified by CNN

  • Click to view omeroscar's profile
    Posted April 5, 2014 by

    More from omeroscar

    Incentives for MSMEs in Phl pushed

    FILIPINOS with micro enterprises such as bakeries, restaurants and beauty spas may soon look forward to additional incentives that include tax exemption on income derived from their operations and exemption from coverage of the minimum wage law.
    Rep. Rodrigo Abellanosa of Cebu City said these exemptions are just some of the benefits and incentives proposed for registered micro, small and medium enterprises (MSMEs) under House Bill 4007.
    "MSMEs are the lifeblood of the economy. They create avenues for healthy trade and promote productivity by providing income-generating activities for a large portion of our population," Abellanosa said.
    The measure proposed that a business enterprise should be classified as a micro enterprise if its total assets have a value of not more than P3 million.
    Likewise, a business enterprise shall be classified as a small enterprise if the value of its total assets is more than P3 million but not more than P15 million.
    A business enterprise whose total assets have a value of more than P15 million but not more than P100 million is classified as medium enterprise.
    The Cebu solon said the above classification of MSMEs shall be subject to review and adjustments by the (MSME) Development Council created under Section 6 of Republic Act (RA) 6977, and or upon recommendation of sectoral organizations concerned, taking into account inflation and other economic indicators.
    The proposal allows the deduction from its gross income in the amount of P40,000 for each new employee hired by registered small and medium enterprises subsequent to its registration under this Act. Such incentive can only be availed for five years after the Act took effect.
    Add your Story Add your Story