complied with all the necessary documents and technical requirements needed to operate

and engage in this type of business. The pre-operating capital for this business will be

₱2,284,100 with each capitalist partners and capitalist-industrial partner, with a total of

₱456,820.

Vision, Mission, and Core Values

A. Vision

To be the Food Bus in the Philippines that serves the best combination and twist

of food that will surely satisfy and bring new taste and excitement to our customers.

B. Mission

We shall:

 Promote the unique and a highest kind of service to customers

 Delegate ourselves in building customer loyalty and confidence by innovating and

emphasizing the highest level of safety and quality in product management.

 Strictly implement the policy of observing the highest quality of standard to ensure

the hazard-free environment.

C. Core Values

F-RESH: serve the innovative kind of food to customers

O-RGANIZED: to have the unique ambiance that suits to the customer’s desire

O-RIGINAL: only best and fresh ingredients to be used and served for our
customer.

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 B-UILD: to make strategies in attracting people who have similar
taste or those who like to discover something new.

U-LTIMATE: providing the greatest level of service to customers

Capitalization

Table 38
Capitalization
Types of
Partners Capital Source of Capital
Partners

Alwin B. Arriola Capitalist ₱ 456,820 Personal Savings

Capitalist -
Jefferson G. Felix ₱ 456,820 Personal Savings
Industrialist

James Robert B.
Capitalist ₱ 456,820 Personal Savings
Maquiling

Ma. Krizyl E. Racasa Capitalist ₱ 456,820 Personal Savings

Emmanuel C. Sida Capitalist ₱ 456, 820 Personal Savings

Organizational Chart

The organizational structure provides a glimpse of the individuals comprising the

organization and their respective positions. It shows to whom a certain employee should

report and the employees working under the supervision of a particular employee. This

helps establish authority and respect among members of the organization.

69
 Cook

Manager/
Owners Service Crew
Cashier
and
Maintenance

Figure 25
Organizational Chart

Manpower Requirements

It is very vital in all business organization to know their manpower requirements

to operate systematically and effectively at all times. It will help also to determine the

capacity or capabilities of the employees to fit in the flow of business as well as to have

a clear duties and responsibilities. Having standard qualifications in hiring and selecting,

the employee will establish efficient business operations.

Table 39
Manpower Requirements
Position Duties and Responsibilities Job Qualifications

 Human Resource
 At least a graduate of a
Manager/Cashier Functions
4-year management
 Hiring or employee
course
selection

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  Employee  With at least 2 years’
evaluation working experience in a
 Scheduling of managerial position
employee shifts  Must be knowledgeable
 Handling payroll about bookkeeping
and other  At least 25 years old
employee  With good leadership
compensations and decision-making
 Marketing Functions skills
 Setting the  With strong
products’ prices communication and
 Advertising/Product interpersonal skills
promotions
 Social media
handling
 Bookkeeping
 Handling and
compilation of
documents of the
business
 Recording and
presentation of
financial data
 Responsible for
cash register and
computation of
daily sales.
 Administrative Functions
 Implementation of
company policies
 Oversee the legal
status and
requirements of the
business
 Handling customer
inquiries
 Scheduling of
location where the
truck is to operate

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  Monitoring inventory
of ingredients  At least a graduate
 Procurement of of any business
ingredients course
 Preparation of  With at least 2-year
procurement job experience
summary related to food
Cook  Training newly handling and
recruited crews preparation
 Preparation of food  At least 25 years
products beforehand old
 Responsible for  Punctual
quality control of
product

 Taking, preparing,
and serving of
customer order
 Handling customer
payments  With job experience
 Preparation of daily related to food
sales report handling and
 Driving the food preparation
Service Crew and truck  At least a high
Maintenance  Maintenance of school graduate
cleanliness inside  At least 21 years
the café old
 Responsible for  With pleasing
maintenance and personality
repair work of
equipment and
machine

72
Employment Process

 Applicants will be passing an application form or resume with 2x2 colored photo

to the senior manager.

 The cafe manager will analyze the contents of the resume and will call

 The applicant for the initial examination if interpreted to be satisfactory.

 The manager will provide an exam that contains basic and abstract questions.

 If the applicant passed the exam, he will be immediately interviewed for

screening.

 After the interview, if passed, will be given the list of requirements to be complied

for a specific period of time.

 After compliance of all the requirements, the applicant will be scheduled for

orientation together with the other applicants.

 After the applicants are oriented, they will be trained for one week regarding the

operations of the business applying the basic principles of the company.

Organizational Policies and Procedures

FooBu’s policy is to operate within the letter and spirit of all applicable laws and

regulations. Employees are expected to reflect the core values and exercise the highest

levels of integrity, ethics and objectivity in actions and relationships which may affect

FooBu, or where employee represents or negotiate on behalf of the company.

Employees must not misuse the authority or influence of their position in these

73
relationships. When there is doubt as to whether an action is appropriate, or whether it

will cause embarrassment to FooBu or its reputation, it should be avoided.

Employees who violate this policy are subject to severe disciplinary action,

including termination of employment. Employees who know of violations must

immediately report to them to their appropriate supervisor and business unit controller,

or they are also subject to severe disciplinary action. Any employee who reports a

violation or a potential violation may, to the extent legally possible, remain anonymous.

This policy must be regularly communicated to all officers, restaurant manager, and

other employees as appropriate.

Business Hours

FooBu shall operate on Tuesdays to Sundays, from 7:00 am to 4:00 pm which

means 9 operating hours for the business and 8 working hours for the employees. Work

schedule shall be:

Table 40
Business Hours
POSITION WORKING HOURS TOTAL HOURS/DAY

9 hours
Manager 7:00 am – 4:00 pm
1 hour for lunch period

9 hours
Cook 7:00 am – 4:00 pm
1 hour for meal period

Service Crew and 7:00 am - 4:00 pm 9 hours

Maintenance 1 hour for meal period

Everyone is expected to report punctually for his work. If a situation arises which

makes it impossible for an employee to report for work, or if employee will be late, he

74
must immediately contact the manager. If a pattern of tardiness and/or absences arises,

the employee will be required to discuss the issue with the manager and may be subject

to dismissal.

Employees are entitled to fifteen-minute break within their shift for snacks. Lunch

break is between 12:00 pm to 1:00 pm. Crews shall not take breaks simultaneously to

ensure continuous flow of activities in the food bus.

The manager may require any employee to perform overtime work when there is

urgent work that needs to be performed, or when there is necessary work to prevent loss

or damage.

Salaries and Wages

Table 41
Salaries and Wages
Title Monthly SSS Philhealth PAG-IBIG
Net Salary
Salary (EE) (EE) (EE)
GENERAL AND ADMINISTRATIVE
General
P15,000 (581.30) (212.50) (100) P16,106.20
Manager
PRODUCTION, SERVICE, AND MAINTENANCE
Cook P9,000 (363.20) (187.50) (100) P9,349.30
Service
Crew and P7,000 (290.70) (150.00) (100) P7459.30
Maintenance

ON-CALL BOOKKEEPER AND AUDITOR

On-Call SSS Philhealth PAG-IBIG
Title Net Salary
Salary (EE) (EE) (EE)
Bookkeeper P5,000 - - - P15,000
Auditor P15,000 - - - P15,000

75
Employee Status, Management, and Policy

1. Classification of Employees

1.1. According to Rank

1.1.1. Managerial Employee – One who is vested with powers or

prerogatives to lay down and execute management policies and/or hire,

transfer, suspend, lay off, recall, discharge, assign or discipline employees.

1.1.2. Rank-and-file Employee – All other employees not falling within

any of the above definitions.

1.2. According to Status

1.2.1. Regular – An employee is hired on a regular status upon

satisfactory completion of the probationary period and upon satisfaction of the

criteria necessary for appointment as regular status.

1.2.2. Probationary – An employee is hired on a probationary basis for a

period not to exceed six (6) months.The company reserves the right to amend

the above classification or create sub - classifications as the circumstances of

the business may require.

2. Orientation

All newly hired employees regardless of classification of rank and status must

undergo an orientation and indoctrination as to the company’s vision, mission, policies,

rules and regulations, and duties and responsibilities.

3. Personnel Records

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 It is the responsibility of the company to update and maintain personnel records.

If there are changes in an employer’s personal data such as residence, civil status,

dependents, etc., a report should be made for updating purposes. Withholding

information and failure to report will result in willful breach of trust wherein continuance

of service will be questioned. It should contain the following document and records:

 Resume with 2x2 colored photo

 Test results

 Interview impressions

 Mayor’s permit and health certificate (to be renewed every calendar a

year)

 Transcript of records

 TIN, SSS, PHIC, HDMF numbers

 Employment contracts

 Performance Evaluation forms

 Certificate of trainings attended

 Leave and violation records

 Others

4. Contracts of Employment

All employees shall duly sign, execute and deliver the corresponding Contract of

Employment. All employees shall thereafter be issued a company identification card,

which must be worn at all times during working hours.

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4.1. Work Schedule

It is the policy of the company to provide appropriate work hours without

violating the mandated rest days. As such, the company requires all employees

to follow the eight (8) hours working shift, excluding one- hour break assigned to

them.( From Tuesdays-Sunday, the work shift will be from 7:00 am – 4:00 pm)

4.2. Attendance and Punctuality

Attendance and punctuality are important qualities that the company

expects from its employees. They are the factors that determine an employee’s

efficiency and reliability. His presence is necessary for the smooth flow of work at

the start of the business hours.

4.2.1. Attendance

Every employee shall ask written permission from the Cafe Manager or

Department Head, before taking the leave of absence.

4.2.1.1. Unscheduled Absences

Employees must file an application for absence for at least one (1)

week to Cafe Manager.

4.2.1.2. Sickness

If employee incurred sickness and cannot report for work, he must

call his supervisor or manager at least two (2) hours before his duty. If no

calls were received on the day of his absence or his call came in late, this

will be considered as AWOL. Upon return to work, he must file an absence

slip with medical certificate attached for signature and approval of Café

Manager or Supervisor.

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 4.2.1.3. Emergency Leave

If employees must go on emergency leave, he must file an absence

slip immediately. Attached to the absence slip must be documents

justifying his reason for going on emergency leave. An employee who is

absent from work without written approval is subject to penalties. An

employee who is absent without submitting official leave for five

consecutive days is considered to abandoned his work and therefore

subject to outright dismissal from the company.

4.2.2. Punctuality

It is the policy of the company to discourage tardiness as this

affects the morale of the punctual employees as well as the operations of

the business. Tardiness shall mean coming to work past the required

starting time. It also means failure to go back in the workplace immediately

after break periods. Heavy traffic, oversleeping, personal reasons, etc. do

not constitute justification for late arrivals. Only three (3) tardiness are

allowed within one month. In excess of this, an employee is subject to

disciplinary action.

4.3. Personnel Movement and Performance Evaluation

It is management’s prerogative to assign, transfer, reclassify, promote or

demote its employees accordingly based on merit and performance. Thus,

employees are continuously evaluated as to their performance, work attitude,

productivity, honesty and diligence and may be served as bases for

79
 management’s decisions on personnel movement. Performance evaluation shall

be done to every employee on his 3rd, 4th, and 5th month.

4.4. Separation from Service

4.4.1. Voluntary Resignation

In case an employee intends to resign, he/she must give a one-month

prior notice to the management and must comply with all the clearance

requirements; otherwise the employee shall forfeit whatever remaining

compensation due to him.

4.4.2. Termination

In all cases involving a termination of an employee’s service from the

company, appropriate notice of termination shall be furnished to the employee

subject to clearances of all accountabilities.

4.5 Compensation and Benefits

4.5.1. Salaries and Wages

All employees shall receive their respective salaries or wages as provided

in their Contracts of employment every 15th and last day of the month. Cut-off for

payroll computation is every 10th and 25th of the month.

4.5.2. Cancelled Day-off/Holiday Pay

Every employee shall be provided with a rest period of twenty-four (24)

hours after every six (6) consecutive days. Work performed on a regular holiday

80
shall be compensated with an additional compensation equivalent to 100% of his

regular salary. Work performed on an employee’s rest days or on a special

holiday shall be paid an additional compensation of 30% of his regular salary.

The following shall be considered regular holidays:

 New Year’s Day - January 01

 Maundy Thursday - movable date
 Good Friday - movable date
 Araw ng Kagitingan - April 09
 Labor Day - May 01
 Independence Day - June 12
 National Heroes Day - last Sunday of August
 Ramadan - movable date
 Bonifacio Day - November 30
 Christmas Day - December 25
 Rizal Day - December 30
The following shall be considered special holidays:

 Eid'lFtr – movable date

 Eid'lAdha – movable date
 Quezon City Day – August 19
 All Saints Day - November 01
 Last day of the Year - December 31

4.5.3. 13th Month Pay

The 13thmonth pay of an employee which shall be equivalent to 1/12 of

his basic salary earned within a calendar year shall be given not later than

December 24 of each year.

4.5.4. Paternity and Maternity Leave

Paternity and maternity leave benefits as provided by law shall be given to

every employee entitled thereto, upon complying with all the requirements of the

81
company and upon proper verification by the Company’s duly authorized

representatives.

4.5.5. SSS/PHIC/HDMF Benefits

Benefits under SSS/PHIC/HDMF law shall be granted in accordance with

applicable laws. Implementation of procedures relative to entitlement of said

benefits should be done in accordance with the regulations to be promulgated by

the management.

4.5.6. Hospitalization Plan

Regular employees shall be provided with hospitalization plan with a

respectable Health Maintenance Organization under terms and conditions to be

solely decided by the company.

4.5.7. Accident Insurance

Regular employees are enrolled by the Company under a reputable

Insurance Organization. Any accident incurred whether work-related or not shall

be compensated by this Insurance firm. This plan shall be on employer-employee

participating basis.

4.5.8. Retirement Benefits

Retirement pay benefits as provided by law shall be given to all qualified

employees upon their retirement from the company.

4.5.9. Bereavement Assistance

If an immediate family member of a regular employee passed away, he

shall be given a financial assistance of P5000.00 upon complying with all the

requirements of the company and verification by its authorized representative.

82
 4.5.10. Other Incentives and Awards

Awards and certificates of recognition, such as Crew of the Month, Best in

Attendance, Most Punctual Employee, Model Employee of the Year and the like

shall be given the discretion of management.

Code of Ethics

1. Hygiene and Sanitation

All employees must observe must observe the highest standard of hygiene and

sanitation. Employees must be well-groomed and continue with their work, wearing

clean and proper attire. For this purpose, the tem “well-groomed” shall mean proper

haircut, cut fingernails, use deodorant, and clean and regularly washed hands. For this

purpose, the term “clean and proper attire” shall likewise include newly-washed and

properly-ironed attire, no excessive dirt on clothes and shoes, and proper and complete

company uniform worn properly.

2. Arrival and Departure of Employees

All employees regardless of status and rank must submit all personal belongings

for inspection upon entering the company premises. Inspection will include a tickler

which shall list all contents of his bag, down to the smallest detail. All personal

belongings are restricted within the locker area while the employees on-duty. It is strictly

prohibited to bring in any personal belongings based on the tickler as well as body

frisking.

3. Procedure for Notices/Bulletin Boards

83
 Management shall post all notices, announcements and memoranda of general

application on the bulletin board. Ignorance is not an excuse and it is incumbent on

each employee to regularly check the bulletin boards for new notices, announcements

or memoranda. No employee is allowed to post or remove any document on the bulletin

board without the prior permission from the management.

4. Notice of Disciplinary Action

In accordance with the due process requirements of the Labor Code, as

amended, all employees found or reported to have committed a violation of the

company rules and regulations shall be given a written notice to explain, and shall be

given the opportunity to explain why no disciplinary action should be imposed against

him. Thereafter, any disciplinary action to be imposed by the management shall again

be indicated in writing and duly furnished to the affected employee.

5. Code of Conduct

Without in any limiting the prerogative of the company to amend, modify, revoke,

or add to the following list of offenses, the following acts and mere attempts to commit

such acts, even if unsuccessful, shall warrant the corresponding disciplinary actions.

5.1. Kinds of Penalties

Employees are subject to penalties according to their violations made

during their employment.

5.1.1. Written Report of Warning (WR)

It is the notice calling all the attention to the offense and warning the

offenses against repetition of such violation in the future.

5.1.2. Suspension (3D/6D/9D)

84
 If a worker has committed offense for the second or third time, he is

subject to suspension. He will be detached from the organization with the

designated period of time without payment.

5.1.3. Termination (TR)

Termination will be given to employees who have committed a major

offense. The employee will be dishonorably separated from the organization.

Table 42
Employee Offense List
Offenses WR 3D 6D 9D TR

1. Tardiness 1st 2nd 3rd 4th 5th

2. Absence without
1st 2nd 3rd 4th 5th
leave

3. Loitering or
unauthorized leaving of 1st 2nd 3rd 4th 5th
post

4. Extending break
1st 2nd 3rd 4th 5th
period

5. Unauthorized use of
company time for 1st 2nd 3rd 4th 5th
personal pursuit

6. Disobedience to
1st 2nd 3rd
superior

7. Negligence or
1st 2nd 3rd 4th 5th
carelessness

8. Unauthorized use or
misuse of company 1st 2nd 3rd 4th 5th
property

9. Willful destruction of
1st 2nd 3rd
company properties

10. Discourtesy 1st 2nd 3rd 4th 5th

towards consumers,

85
suppliers, superiors
and co-workers

11. Using profane

language or obscene 1st 2nd
language to superiors

12. Stealing or
attempting to steal
properties of the 1st
company or of the co-
workers

13. Failure to comply

with company rules
and standards on 1st 2nd 3rd 4th
security & safety and
Health

14. Failure to comply

with health, security
and safety 1st 2nd 3rd 4th
requirements of the
company

15. Immortality or
1st
scandalous acts

86
 Project Schedule (GANTT Chart)
Table 43
Project Schedule (GANTT Chart)

Activities October November December January

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Registration
- Apply for Licenses, permits and
Certificates
Pre-Operation
- Unit Renovation and Construction
- Installation of Machineries and
Other Equipment
- Identifying Suppliers
- Hire and Train Staff
Advertisement
- Make accounts in social media
platform
- Soft Opening
Opening
- Opening Day

Internal Controls
1. Administrative Controls

1.1 Proper designation of each work to authorized employees.

1.2 Implementing average handling time in conducting services for the

customers not to wait too long.

1.3 Conducting regular inspection of equipment.

1.4 Display of signage for the area to be organized and safety precautions to

prevent accidents.

87
 1.5 Providing disaster recovery plans to be used in case of emergency.

2. Accounting Controls
2.1 Allow only authorized employee to make cash deposits, and require this

employee to make deposits as soon and as frequently as possible.

2.2 Keep records of all deposits and compare them to your bank statement

each month.

2.3 Hold cash in a secure location when it is on hand.

2.4 Keep prepared deposits in a locked safe until the deposits are made, and

secure cash registers with individual authentication so that you know who

accessed which register at which times.

2.5. Make sure that cash reporting responsibilities are spread out enough to

prevent theft by collusion.

2.6 Store copies of all cash register tapes, receipts, invoices, cancelled checks and

any other documentation that records cash transactions. Use

these documents as a paper trail to investigate cash losses and

discrepancies between internal records and bank statements.

2.7 Implement physical and electronic security measures to ensure the safety

of financial information. Store sensitive documents in secure areas, such

88
 as locked filing cabinets that are accessible only to select employees.

2.8 Protect financial data stored on your company network by hiring a

network administration team or contracting with a third-party network

security company. Anyone with physical or electronic access to financial

data can alter, replace, steal or destroy evidence of theft or other financial

mismanagement.

Legal and Taxation Aspects

The legal requirements for starting a business in the Philippines depend on its type of

business and industry. Partnerships and corporations are required to be registered with the

Securities and Exchange Commission (SEC). Usually, the BIR and the City/Municipality Office

require the certificates of registration with the SEC before a business can be registered with

them. Thus, you need to register through those offices to start commencing your business. The

following are the basic requirements to start commencing your business in the Philippines:

Legal Requirements
1. Marikina City  1907 Form
 Business Permit
 Barangay Business Clearance
 Picture of Establishment 3. SSS
 Fire Clearance  R-5
 R-1
 R-1A
2. BIR
4. SEC
 1702 Form
 Articles of Partnership
 1903 Form
 Registration Data Sheet

89
Labor Laws for Employees
Employers, including small businesses, may implement policies and impose terms and

conditions of employment as they deem fit given their operating and profitability requirements.

These policies and employment terms and conditions however must be consistent with

mandated labor policies set forth in the Labor Code of the Philippines.

Under the Labor Code, your employees are entitled to compensation or wages,

overtime pay, holiday and premium pay, service charges and tips in service businesses, SSS,

EC and NHI remittances, service incentive leaves, and retirement pay.

Art. 82. Coverage. The provisions of this Title shall apply to employees in all

establishments and undertakings whether for profit or not, but not to government employees,

managerial employees, field personnel, members of the family of the employer who are

dependent on him for support, domestic helpers, persons in the personal service of another,

and workers who are paid by results as determined by the Secretary of Labor in appropriate

regulations. As used herein, "managerial employees" refer to those whose primary duty

consists of the management of the establishment in which they are employed or of a

department or subdivision thereof, and to other officers or members of the managerial staff.

Art. 83. Normal hours of work. The normal hours of work of any employee shall not

exceed eight (8) hours a day.

Art. 84. Hours worked. Hours worked shall include (a) all time during which an

employee is required to be on duty or to be at a prescribed workplace; and (b) all time during

90
which an employee is suffered or permitted to work. Rest periods of short duration during

working hours shall be counted as hours worked.

Art. 102. Forms of payment. No employer shall pay the wages of an employee by

means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than

legal tender, even when expressly requested by the employee.

Art. 103. Time of payment. Wages shall be paid at least once every two (2) weeks or

twice a month at intervals not exceeding sixteen (16) days. If on account of force majeure or

circumstances beyond the employer’s control, payment of wages on or within the time herein

provided cannot be made, the employer shall pay the wages immediately after such force

majeure or circumstances have ceased. No employer shall make payment with less frequency

than once a month. The payment of wages of employees engaged to perform a task which

cannot be completed in two (2) weeks shall be subject to the following conditions, in the

absence of a collective bargaining agreement or arbitration award:

1. That payments are made at intervals not exceeding sixteen (16) days, in proportion

to the amount of work completed;

2. That final settlement is made upon completion of the work.

Art. 104. Place of payment. Payment of wages shall be made at or near the place of

undertaking, except as otherwise provided by such regulations as the Secretary of Labor and

Employment may prescribe under conditions to ensure greater protection of wages.

Art. 105. Direct payment of wages. Wages shall be paid directly to the workers to whom

they are due, except:

91
 1. In cases of force majeure rendering such payment impossible or under other special

circumstances to be determined by the Secretary of Labor and Employment in

appropriate regulations, in which case, the worker may be paid through another

person under written authority given by the worker for the purpose; or

2. Where the worker has died, in which case, the employer may pay the wages of the

deceased worker to the heirs of the latter without the necessity of intestate

proceedings. The claimants, if they are all of age, shall execute an affidavit

attesting to their relationship to the deceased and the fact that they are his heirs,

to the exclusion of all other persons. If any of the heirs is a minor, the affidavit

shall be executed on his behalf by his natural guardian or next-of-kin. The

affidavit shall be presented to the employer who shall make payment through the

Secretary of Labor and Employment or his representative. The representative of

the Secretary of Labor and Employment shall act as referee in dividing the

amount paid among the heirs. The payment of wages under this Article shall

absolve the employer of any further liability with respect to the amount paid.

Art. 114. Deposits for loss or damage. No employer shall require his worker to make

deposits from which deductions shall be made for the reimbursement of loss of or damage to

tools, materials, or equipment supplied by the employer, except when the employer is engaged

in such trades, occupations or business where the practice of making deductions or requiring

deposits is a recognized one, or is necessary or desirable as determined by the Secretary of

Labor and Employment in appropriate rules and regulations.

3. Employee benefits laws

92
 Art. 85. Meal periods. Subject to such regulations as the Secretary of Labor may

prescribe, it shall be the duty of every employer to give his employees not less than sixty (60)

minutes time-off for their regular meals.

Art. 87. Overtime work. Work may be performed beyond eight (8) hours a day provided

that the employee is paid for the overtime work, an additional compensation equivalent to his

regular wage plus at least twenty-five percent (25%) thereof. Work performed beyond eight

hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate

of the first eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.

Art. 90. Computation of additional compensation. For purposes of computing overtime

and other additional remuneration as required by this Chapter, the "regular wage" of an

employee shall include the cash wage only, without deduction on account of facilities provided

by the employer.

Art. 99. Regional minimum wages. The minimum wage rates for agricultural and non-

agricultural employees and workers in each and every region of the country shall be those

prescribed by the Regional Tripartite Wages and Productivity Boards. (As amended by Section

3, Republic Act No. 6727, June 9, 1989).

Income Taxes

Under the National Internal Revenue Code (NIRC), the business is considered as a

partnership, or in NIRC terms, as a corporation. From Section 27 of the NIRC, except as

93
otherwise provided in this Code, an income tax of thirty percent (30%), effective January 1,

2009, is hereby imposed upon the taxable income derived during each taxable year from all

sources within and without the Philippines by every corporation. The business will use a

calendar year for tax purposes.

SEC. 145 Retirement of Business - A business subject to tax pursuant to the preceding

sections shall, upon termination thereof, submit a sworn statement of its gross sales or

receipts for the current year. If the tax paid during the year be less than the tax due on said

gross sales or receipts of the current year, the difference shall be paid before the business is

considered officially retired.

SEC. 146 Payment of Business Taxes - The taxes imposed under Section 143 shall be

payable for every separate or distinct establishment or place where business subject to the tax

is conducted and one line of business does not become exempt by being conducted with some

other business for which such tax has been paid. The tax on a business must be paid by the

person conducting the same.

94