Category Archives: MSMEs

Online Sellers / Businesses Required to Register with the Bureau of Internal Revenue (BIR)

The Bureau of Internal Revenue (BIR) gave notice, through Revenue Memorandum Circular No. 60-2020, to all persons engaged in online selling, or conducting business transactions through any forms of electronic media, to register their respective businesses and pay the appropriate taxes — not later than 31 July 2020. Online sellers are also given notice to declare past sales and pay the appropriate taxes, without penalties, if done not later than 31 July 2020. The registration guidelines and requirements, for both individual and juridical online sellers, are discussed below.

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DTI Guidelines to Follow on Minimum Health Protocols for Barbershops and Salons

[On 29 May 2020, the Department of Trade and Industry (DTI) issued the Guidelines to Follow on Minimum Health Protocols for Barbershops and Salons. This has been approved under IATF Resolution No. 41, series of 2020, for areas under General Community Quarantine (GCQ) starting 7 June 2020 at 30% operating capacity, and Modified General Community Quarantine (MGCQ) at 50% capacity. Refer to Section 4(6)(c) of the revised Omnibus Guidelines and the Revised Category I-IV Business Establishments. The full text of the guidelines is reproduced below.]

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What You Need to Know about the Balik Probinsya, Bagong Pag-asa (BP2) Program

The President institutionalized the Balik Probinsya, Bagong Pag-asa (BP2) Program as a continuing national program and a pillar of balanced regional development. The guidelines for the BP2 Program, including the creation of the Balik, Probinsya, Bagong Pag-asa Council, are contained in Executive Order No. 114 issued on 6 May 2020. Here are the salient points of EO 114.

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P5,000-P8,000 Wage Subsidy under the Small Business Wage Subsidy (SBWS) Program

The government has rolled out another subsidy program — between P5,000 to P8,000 (based on the region) — per month per eligible employee. The Department of Finance (DOF) recently announced Small Business Wage Subsidy (SBWS) program. The SBWS measure will be rolled out through the Social Security System (SSS), which will only be accepting applications from 16 April 2020 to 30 April 2020 [Note: Extended by the DOF to 8 May 2020, in the light of the extension of the ECQ to May 15. Important Update: Refund of SBWS benefits; See also Grievance Procedure for those eligible but not covered, and Non-Duplication of SBWS, CAMP and SAP.]

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Suspension of Payments of Individual Debtors: Options for Debtors in Distress

Individual debtors under financial distress may be covered by any of the following options: (a) Suspension of payments; (b) Voluntary liquidation; and (c) Involuntary liquidation. This discussion covers only suspension of payments under Republic Act No. 10142, also known as the “Financial Rehabilitation and Insolvency Act (FRIA) of 2010“, as fleshed out in the FLSP Rules. Moreover, the discussion below on Suspension of Payments applies only to individual debtors.

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COVID 19 Pondo Para sa Pagbabago at Pag-Asenso Enterprise Rehabilitation Fund (P3-ERF)

The COVID 19 Pondo Para sa Pagbabago at Pag-Asenso Enterprise Rehabilitation Fund (P3-ERF) is a One Billion Peso (PhP1,000,000,000) special financing program by the Small Business Corporation of the Department of Trade in Industry (DTI) for MSMEs affected by COVID-19. This is part of the social amelioration programs (see list of Social Amelioration Programs) designed to mitigate the socio-economic impact of the Coronavirus Disease 2019 (COVID-19) health crisis during the Enhanced Community Quarantine (ECQ), pursuant to the Bayanihan to Heal as One Act (Republic Act No. 11469) and its Implementing Directives.  

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Recovery Package for Micro and Small Enterprises Engaged in Agriculture and Fisheries Food Production, and other Supply Chain Activities

The government has rolled out a number of social amelioration programs in order to mitigate the socio-economic impact of the COVID-19 health crisis during the Enhanced Community Quarantine (ECQ), pursuant to the Bayanihan to Heal as One Act (Republic Act No. 11469) and its Implementing Directives. Among the social amelioration programs (see List of Social Amelioration Programs) provided in Joint Memorandum Circular No. 1 is the Recovery Package for Micro and Small Enterprises Engaged in Agriculture and Fisheries Food Production, and other Supply Chain Activities in Accordance with the Agripreneurship Development Fund/Program of the ACPC

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Moratorium on Loan Payments of Small Business Corporation Borrowers under Community Quarantine

The Pondo sa Pagbabago at Pag-Asenso (P3) is a financing program established by Small Business Corporation for micro enterprises with an asset not exceeding Three Million Pesos (PhP 3,000,000.00) at not more than 2.5 percent per month all-in interest rate and service charges. One of the social amelioration programs (see List of Social Amelioration Programs) is the moratorium on loan payments of Small Business Corporation borrowers. This is contained in Joint Memorandum Circular No. 1, issued pursuant to the Bayanihan to Heal as One Act (Republic Act No. 11469) and its Implementing Directives, designed to mitigate the socio-economic impact of the Coronavirus Disease 2019 (COVID-19) health crisis during the Enhanced Community Quarantine.

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Go Negosyo Act (Republic Act No. 10644) – Full Text

[Republic Act No. 10644, also known as the “Go Negosyo Act”, was signed by the President on 15 July 2014. It mandates the creation of the “Negosyo Center” in all barangays, cities and municipalities, amending the Magna Carta for Micro, Small and Medium Enterprises (R.A. 6977) and the Barangay Micro Business Enterprises (BMBEs) Act of 2020 (R.A. 9178). The complete text of R.A. 10644 is reproduced below.]

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