REPUBLICOFTHE PHILIPPINES

DEPARTMENT OF FINANCE
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
Regulations (RR)No. 7 -2012.

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, smallsari-
sari 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 cornpliancerequirements:

1. Registrationwith the Bureauusing BIR Fonn 1901 with the tbllowing minimal
documentary requirements:
i. SwomStatement of Incometbr the year(Annex"A"), and
NSOCertifiedor LocalCivil RegistryBirthCertificate;
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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
Receipts/Sales Invoices.

All internal revenue officers and employeesare hereby enjoined to give this
RevenueMemorandumCircularas wide a publicity as possible.

IIENARES

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