DTI Cebu urges online sellers to register via BNRS and BMBE for tax exemptions and benefits amid new tax regulations | Department of Trade and Industry Philippines

CEBU – The Department of Trade and Industry (DTI) is urging online sellers and digital entrepreneurs in Cebu to register their business names through the Business Name Registration System (BNRS) at bnrs.dti.gov.ph and follow this with the Barangay Micro Business Enterprise (BMBE)-ONLINE registration at bmbe.dti.gov.ph.

This initiative is crucial in light of the Internet Transactions Act (RA 11967) and new requirements under BIR Revenue Regulations No. 15-2024 and Revenue Regulations No. 16-2023, which affect e-commerce platforms and digital financial service providers.

According to DTI Cebu Provincial Director Rose Mae Quinañola, both the BNRS and BMBE-ONLINE systems are fully digital, offering entrepreneurs the convenience of 24/7 access to register their businesses from anywhere in the country.

“This makes the registration process more efficient, eliminating the need for in-person visits to DTI offices, and enabling faster processing times,” said Director Quinañola.

Registration Process for Online Sellers (BNR and BMBE)

Business Name Registration (BNR):

The first step for businesses that have not yet registered their business name with DTI.
Business Name Registration ensures businesses comply with the Internet Transactions Act, which mandates registration for online businesses to promote transparency and protect consumers.
Online sellers who have not registered their business names are encouraged to visit bnrs.dti.gov.ph to complete their registration.
Note: A Business Name Registration provides the business with legal identity but is not a license to operate. To legally operate, a business must also secure a Business/Mayor’s Permit from the local government unit.

Barangay Micro Business Enterprise (BMBE) Registration:
For businesses that are already registered with the DTI (BNR), Securities and Exchange Commission (SEC), or Cooperative Development Authority (CDA), BMBE registration is the next step to access significant tax and non-tax benefits.
To qualify as a BMBE, businesses must:
- Be engaged in production, processing, trading, or services.
- Have total assets not exceeding PHP 3 million, excluding land.
- Not be engaged in professional services requiring government licensure (e.g. Accountant, Lawyer, Doctor, Pharmacist, Engineer, Real Estate Service Practitioners, etc.).
- Not be a branch, subsidiary, division or office of a large scale enterprise

The BMBE program, under Republic Act No. 9178, is a government initiative designed to support micro-businesses. According to Director Quinañola, registering as a BMBE provides access to tax exemptions, special credit programs, and government support services.

“With new BIR regulations and the Internet Transactions Act, businesses are strongly encouraged to comply with tax laws and take advantage of the benefits available through BMBE registration,” she added.

Key Benefits of Registration:

Income Tax Exemption: Registered BMBEs are fully exempt from paying income tax on revenue generated from operations.

Withholding Tax Exemption: BMBEs are exempt from the 1% withholding tax on half of the gross remittances imposed by e-commerce platforms and digital financial services providers.

Exemption from the Minimum Wage Law: BMBEs are exempt from the Minimum Wage Law, although they must still provide social security and health benefits.

Access to Credit and Financial Support: BMBEs can access government credit programs, such as low-interest loans, and get priority in financing assistance.

Technology and Training Support: BMBEs have access to government technology programs and skills development support to enhance their production, processing, and business operations.

Compliance with the Internet Transactions Act (RA 11967): Ensures that online businesses operate legally, building consumer confidence and protecting their rights.

BIR Regulations and Compliance Dates:

Revenue Regulations No. 15-2024: Mandates that all persons engaged in business must register with the BIR within 10 days of starting operations. Failure to comply may result in penalties, including fines of up to PHP 20,000.

Revenue Regulations No. 16-2023: Requires e-commerce platforms and digital financial services providers to withhold 1% of half of the gross remittances for businesses with earnings exceeding PHP 500,000 annually. However, businesses registered as BMBEs are exempt from this withholding tax, offering significant relief to micro-businesses and online sellers.

July 15, 2024: E-commerce platforms like Shopee and Lazada began withholding a 1% tax on half of the gross remittances for online sellers whose annual earnings exceed PHP 500,000.

October 12, 2024: Digital financial services providers, such as GCash and Maya, will begin imposing the same withholding tax on businesses with remittances above PHP 500,000.

How to Register:

Business Name Registration: Visit bnrs.dti.gov.ph to register or renew your business name.

The Business Name Registration System (BNRS) is available 24/7, allowing sole proprietors to register their business names online.

Registration requires a small fee, based on the territorial scope of the business:
Barangay: PHP 200
City/Municipality: PHP 500
Regional: PHP 1,000
National: PHP 2,000

Additionally, a Documentary Stamp Tax (DST) of PHP 30.00 applies to all business name registrations

Payments can be made through online channels such GCash, Maya, credit cards), making the process digital, fast, and easy.

BMBE Registration: For businesses with existing BN, SEC, or CDA registration, apply for BMBE status via bmbe.dti.gov.ph to start enjoying tax incentives and access to government programs. BMBE registration is free of charge and available online 24/7.

For more information on business registration and BMBE application, visit bnrs.dti.gov.ph and bmbe.dti.gov.ph.

According to Director Quinañola, the Philippine government is strongly promoting business registration as part of its efforts to foster economic growth, enhance tax compliance, and support inclusive development.

“Registering businesses, especially for online sellers and digital entrepreneurs, is crucial in formalizing the growing digital economy and ensuring that entrepreneurs can access government support programs, tax incentives, and financial assistance,” she added.

This initiative allows businesses to operate legally, contributing to the economy by creating more jobs, generating additional revenue, and ensuring consumer protection through transparency and accountability. With a robust base of formally registered micro, small, and medium enterprises (MSMEs), the government can better deliver services and infrastructure that promote national development, benefiting not just business owners but all Filipinos.

In 2023, the Philippine Statistics Authority (PSA) reported that the digital economy contributed 8.4% to the country’s GDP, amounting to PHP 2.05 trillion. This marked a 7.7% growth from the previous year’s contribution. According to the Department of Trade and Industry (DTI), business name registrations grew by 6% in the first half of 2024, totaling 679,118. The rapid rise in e-commerce was a key driver, with online businesses accounting for 17,000 registrations during the first half of the year, nearly matching the full-year total of 18,000 in 2023. This trend highlights the growing importance of the digital economy and the shift towards online commerce.

For more information, contact: Department of Trade and Industry-Cebu Provincial Office thru phone: (032) 255-7082, 255-6971, 253-2631 local 304 and/or e-mail: r07.Cebu@dti.gov.ph. (DTI Cebu/PR) ♦

Date of release: 02 October 2024

Registration Process for Online Sellers (BNR and BMBE)

Key Benefits of Registration:

BIR Regulations and Compliance Dates:

How to Register:

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