REVENUE MEMORANDUM CIRCULAR NO. V - VO 14

REPUBLICOFTHE PHILIPPINES
OF FINANCE
DEPARTMENT
BUREAU OF INTERNAL REVENUE
05,201'4
February
REVENUEMEMORANDUMCIRCULAR NO. V- VO14
SUBJECT
: CLARIFYING THE ISSUES ON THE REGISTRATION AND
COMPLIANCE REQUIREMENTS OF MARGINAL INCOME
EARNERS PURSUANT TO REVENUE REGULATIONS NO. 7.
2012
TO
:
All Internal Revenue Officers and Others Concerned
This Circularis beingissuedto clarify the issuesand reiteratethe registrationas
well as compliancerequirements
of MarginalIncomeEarners(MIE) pursuantto Revenue
-2012.
(RR)No. 7
Regulations
MIE asdefinedin Section3 of the sameRR provides:
" Marginal Income Earner - shall refer to those individual whose
businessdo not realizegrosssalesor receiptsexceedingP100,000in any
I 2-monthperiod. "
i'
The individual referred to in that section is an individual not deriving
compensation
as an employeeunderan employer-employee
relationshipbut who is selt:
employedand derivinggrosssalesor receiptsnot exceedingP100,000in any 12-month
period.Moreover,the activitiesof such MIE should be principallylbr subsistence
or
livelihood. The MIE, as herein defined,shall include but not limited to agriculfural
growers/producers
(farmers/fishennen)
sellingdirectlyto ultimateconsumers,
smallsarisari stores,small carinderiasor "turo-turos", drivers/operatorsof a single unit tricycle,
and such,but shall not includelicensedprofessionals,
consultants,artists,salesagents,
brokers and others similarly situated,including all others w}ose income have been
subjectedto withholdingtax.
REGISTRATION AND COMPLIANCE REQUIREMENTS
The incidenceof being a MIE as requiredunder RR 7-2012coversthe following
privilegesandminirnumregistrationandtax cornpliance
requirements:
1. Registrationwith the Bureauusing BIR Fonn 1901 with the tbllowing minimal
documentary
requirements
:
i.
/i.
\,/
hV
\\l
SwomStatement
of Incometbr the year(Annex"A"), and
NSOCertifiedor LocalCivil RegistryBirthCertificate;
V
z. Exemptionfrom the paymentof Annual RegistrationFee(ARF);
3. Registrationof Books of Accounts (e.g. two-columnjournal or other simplified
books for daily expensesandrevenues);
invoicesas prescribedunder RMO
4. Issuanceof registeredprincipal receipts/sales
12-2013;
5. Filing and Paymentof Annual IncomeTax Return using BIR Form 1701 similar
to any other self-employedindividuals;and
Tax).
6. Exemptionfrom paymentof businesstaxes(i.e. VAT or any Percentage
The BIR District Office, upon evaluationof applicationfor registration,shall
issue the Certificate of Registration and shall iikewise ensure compliance with the
registrationof books of accounts,and issuanceof Authority To Print for their Principal
Invoices.
Receipts/Sales
All internal revenue officers and employeesare hereby enjoined to give this
RevenueMemorandumCircularas wide a publicity as possible.
IIENARES
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