RMC No. 07-2014 — Clarifies the issues on the registration and compliance requirements of Marginal Income Earners pursuant to Revenue Regulations No. 7-2012 Digest | Full Text | Annex A

BUREAU OFINTERNALREVENUE REPUBLICOF THE PHILIPPINES DEPARTMENT OF FINANCE RECORDS MGT DIVISION RECEIVED FE052014 HTENAL RDYENUE 4:19P M

February 05, 2014

REVENUE MEMORANDUM CIRCULARNO.-3D/4

SUBJECT: CLARIFYING THE ISSUES ON THE REGISTRATION AND

COMPLIANCE REOUIREMENTS OF MARGINALINCOME

2012 EARNERS PURSUANT.TO REVENUE REGULATIONS NO.7-

TO All Internal Revenue Officers and Others Concerned

well as compliance requirements of Marginal Income Earners(MIE) pursuant to Revenue This Circular is being issued to clarify the issues and reiterate the registration as

Regulations(RR)No.7-2012.

MIE as defined in Section 3 of the same RR provides

business do not realize gross sales or receipts exceeding P100,000 in any "Marginal Income Earner - shall refer to those individual whose

12-month period. "

growers/producers (farmers/fishermen) selling directly to ultimate consumers, small sari. sari stores, small carinderias or turo-turos", drivers/operators of a single unit tricycle brokers and others similarly situated, including all others whose income have been employed and deriving gross sales or receipts not exceeding P100,000 in any 12-month and such, but shall not include licensed professionals, consultants, artists, sales agents subjected to withholding tax. compensation as an employee under an employer-employee relationship but who is self period.Moreover, the activities of such MIE should be principally for subsistence or livelihood. The MIE, as herein defined, shall include but not limited to agricultural The individual referred to in that section is an individual not deriving

REGISTRATION AND COMPLIANCE REQUIREMENTS

privileges and minimum registration and tax compliance requirements: The incidence of being a MIE as required under RR 7-2012 covers the following

1. Registration with the Bureau using BIR Form 1901 with the following minimal documentary requirements:

1 I NSO Certified or Local Civil Registry Birth Certificate Sworn Statement of Income for the year(AnnexA);and

2.Exemption from the payment of Annual Registration Fee (ARF)

3. Registration of Books of Accounts (e.g. two-column journal or other simplified

books for daily expenses and revenues);

4.Issuance of registered principal receipts/sales invoices as prescribed under RMO

12-2013;

5. Filing and Payment of Annual Income Tax Return using BIR Form 1701 similar

to any other self-employed individuals; and

6.Exemption from payment of business taxes (i.e.VAT or any Percentage Tax

The BIR District Office, upon evaluation of application for registration,shall issue the Certificate of Registration and shall likewise ensure compliance with the registration of books of accounts, and issuance of Authority To Print for their Principal Receipts/Sales Invoices.

All internal revenue officers and employees are hereby enjoined to give this Revenue Memorandum Circular as wide a publicity as possible.

KIMS.JA O-HENARES Commissioner/of Internal Revenue H-2 020892

DUNFAU OF INTERNAL REVENUL RECORDS MGT.DIVISION FE9 0 5 2014-J4 :19P.M

M RECEIVED