In celebration of Micro, Small, and Medium Enterprise Development (MSMED) Week this July, ‘CIA with BA’ turned the spotlight on small business owners and aspiring entrepreneurs. Through the ‘Tanong ng Pilipino’ segment, the show addressed frequently asked questions about tax exemptions and labor policies affecting micro enterprises.

One question came from Ivan of San Juan, Batangas, who asked whether a small barangay-based business could be exempted from paying income tax.

According to resident legal expert Atty. Rafael Rivera, this is possible under specific conditions. “Tama. Totoo na pwede kang ma-exempt ngunit kailangan mong kumuha ng certificate of authority [mula] sa LGU mo,” he explained.

Rivera said barangay enterprises fall under the broader category of MSMEs, and many of them qualify for incentives under the law. “Basically, meron tayong tinatawag na micro, small, medium enterprises (MSME)… pwede silang pumunta sa LGU nila, hihingi sila ng exemption...” as long as their total assets do not exceed Php 3 million, excluding land.

However, he clarified that this exemption applies only to income tax. “Exempted ka sa income tax sabi ng batas, pero ‘yun lang ‘yon,” Rivera said, pointing out that businesses may still be subject to other taxes such as percentage tax or value-added tax (VAT).

Another question came from Armelyn of Quezon Province, who raised concerns about wages in barangay micro business enterprises (BMBEs). She asked if it was legal for BMBEs to pay below the minimum wage. Atty. Marian Cayetano confirmed that such businesses may be allowed to do so, but only under certain conditions.

“Allowed ang mga micro business enterprises na magpasahod ng mas mababa sa itinakda ng ating minimum wage law,” Cayetano explained. However, she stressed that the business must be registered with the LGU and must have a valid Certificate of Authority.

Cayetano also reminded viewers that despite the wage exemption, employers must still comply with giving mandatory government benefits. “Provided po na nabibigyan nila ng government-required benefits katulad ng SSS, PhilHealth...” she added, ensuring that employees still receive protection under the law.

By answering questions like these, ‘CIA with BA’ continues to empower small business owners with legal guidance and public service. The show encourages viewers to stay informed and utilize available support from local and national government programs.

Led by Senator Alan Peter Cayetano and Abunda, ‘CIA with BA’ continues the advocacy of the late Senator Rene Cayetano. The program airs every Sunday at 11 p.m. on GMA7, with replays every Saturday at 10:30 p.m. on GTV.