The coverage of the BMBE refers to entity or enterprise engaged in the production, processing on manufacturing 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 be subjected to review and upward adjustment by the SMED Council, as mandated under Republic Act 6977, as amended by Republic Act No. 8289.
A Certificate of Authority is the certificate issued granting the authority to the registered BMBE to operate and be entitled to the benefits and privileges accorded thereto.
The office of the treasurer of each City or Municipality shall register the BMBE’s and issued a Certificate of Authority to enable the BMBE to avail of the benefits under their Act. Any such application shall be processed within fifteen (15) working days upon completion of the complete documents. Otherwise the BMBE’s shall be deemed registered. The Certificate of Authority shall be effective for a period of two (2) years, renewable for a period of two years for every renewal. The BMBE shall be exempt from tax for income arising from the operations of the enterprise.
Section 8 of R.A. 91781 or the BMBE law.
The BMBE’s shall be exempt from the coverage of the Minimum Wage Law; Provided that all employees covered under this Act shall be entitled to the same benefits given to any regular employee such as Social Security and healthcare benefits, and also exempted from taxes & fees.