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This page features the full text of
Republic Act No. 6810
"Magna
Carta for Countryside and Barangay Business Enterprises (Kalakalan 20)"
AN
ACT ESTABLISHING THE MAGNA CARTA FOR COUNTRYSIDE AND BARANGAY BUSINESS
ENTERPRISES, GRANTING EXEMPTIONS FROM ANY AND ALL GOVERNMENT RULES AND
REGULATIONS AND OTHER INCENTIVES AND BENEFITS THEREFOR, AND FOR OTHER
PURPOSES.
REPUBLIC
ACT NO. 6810
AN
ACT ESTABLISHING THE MAGNA CARTA FOR COUNTRYSIDE AND BARANGAY BUSINESS
ENTERPRISES, GRANTING EXEMPTIONS FROM ANY AND ALL GOVERNMENT RULES AND
REGULATIONS AND OTHER INCENTIVES AND BENEFITS THEREFOR, AND FOR OTHER
PURPOSES.
Section
1. It is hereby declared to be
the policy of the State that growth of countryside business enterprises
shall be achieved through absence of bureaucratic restrictions and
granting
of incentives and other benefits. chanrobles virtuallaw libraryred
.
Sec.
2. This Act shall be known and
cited as the "Magna Carta for Countryside and Barangay Business
Enterprises
(Kalakalan 20)."
As
used in this Act, the term "countryside and barangay business
enterprises,"
hereinafter referred to as the CBBE (Kalakalan 20), shall mean any
business
entity, association or cooperative registered under the provisions of
this
Act whose:
(a) Number
of employees does not exceed twenty (20) at any time for the purpose of
undertaking a productive business enterprise recommended by the
Department
of Trade and Industry (DTI) provincial office that will help develop
the
economy in its area. chanrobles virtuallaw libraryredFor
this purpose, the term "productive business enterprise" shall not apply
to business enterprises engaged principally in any of the following
activities,
namely: professional services, retailing, wholesaling or trading of
commodities,
products or merchandise;
(b) Assets,
at the time of registration as CBBE, do not exceed Five hundred
thousand
pesos (P500,000.00) before financing; and
(c) Principal
office and location of business operations are located in the
countryside
as defined in the implementing rules and regulations issued by the
Secretary
of Trade and Industry.
Sec.
3. Countryside business entities
shall, upon registration, pay Two hundred and fifty pesos (P250.00) to
the municipality or city where its principal place of office and
business
operations are located to cover the cost of the issuance of the license
to operate, known as the CBBE authority. chanrobles virtuallaw libraryred
All
CBBEs shall be exempted from all taxes, national or local, license and
building permit fees and other business taxes, except real property and
capital gains taxes, import duties and other taxes on imported
articles.
In addition, any and all income, receipts and proceeds derived from the
business operations of the CBBE shall be excluded from the computation
of gross income for purposes of computing the individual income tax of
the owners/members thereof.chanrobles virtual law library
It
shall be exempted from any and all government rules and regulations in
respect of assets, income, and other activities indispensably and
directly
utilized in, proceeding from or connected with the business of the
enterprise. chanrobles virtuallaw libraryred
CBBEs,
however, shall pay the CBBE fee to the municipal or city treasurer
where
they are registered, starting on their second year of operations, based
on the following schedule:
(a) Those
with net assets before financing amounting
to not more than P100,000.00 P1,000.00
per annum; (b) Those
with net assets before financing of
more than P100,000.00 to P250,000.00 P2,500.00
per annum; chanrobles virtuallaw libraryred
(c) Those
with net assets before financing of
more than P250,000.00 to P400,000.00 P4,000.00
per annum; and
(d)Those
with net assets before financing
of more than P400,000.00 to P500,000.00 P5,000.00
per annum.
In
the event the CBBE uses a brand name on its products, such brand name
shall
first be registered with the Bureau of Domestic Trade, through the
Department
of Trade and Industry (DTI) provincial office.
Sec.
4. The collected CBBE fee shall
accrue exclusively to the municipality or city and shall be used for
developmental
projects approved by the municipal or city council. chanrobles virtuallaw libraryred
Sec.
5. CBBEs registered under the
provisions of this Act shall acquire a separate and distinct juridical
personality from the owners/members thereof and as such can own,
dispose
and encumber its properties and enter into contracts on its own
account,
with the capacity to sue and be sued, and transact business anywhere in
the country.cralaw:red
Sec.
6. The CBBE shall, as far as
practicable, recruit its employees and utilize the indigenous and other
existing resources within the areas of its operations.cralaw:red
Sec.
7. All the exemptions and other
benefits herein provided shall, after due notice and hearing, be
forfeited
in case of any violation of the provisions of this Act by the CBBE or
by
any of its officers and authorized representatives.cralaw:red
Sec.
8. The CBBE authority shall,
after due notice and hearing, be revoked and cancelled upon the failure
of the CBBE, without valid reasons, to commence its operations within
forty-five
(45) days from receipt of the authority to operate. chanrobles virtuallaw libraryred
Sec.
9. The exemptions and other benefits
provided in this Act shall apply for a period not exceeding five (5)
years
from the date of the registration of the CBBE, provided such CBBE is
registered
within five (5) years from the effectivity of this Act.cralaw:red
Sec.
10. The Secretary of Trade and
Industry in consultation with the Secretaries of Finance, Labor, and
Health,
and the local government units shall formulate and prepare the
necessary
rules and regulations to implement the provisions of this Act within
one
hundred twenty (120) days. The rules and regulations issued pursuant to
this section shall take effect fifteen (15) days after publication in a
newspaper of general circulation and by such other means as the
Secretary
of Trade and Industry may deem reasonably sufficient to give interested
parties general notice of such issuance. chanrobles virtuallaw libraryred
Sec.
11. Any person who shall willfully
violate any provisions of this Act or who shall in any other manner
commit
any act to defeat any provisions of this Act shall, upon conviction, be
punished by a fine of not less than One thousand pesos (P1,000.00) nor
more than Ten thousand pesos (P10,000.00): Provided, however, That
should
the same act or omission committed under this section be likewise
covered
by another law, decree or order which provides for heavier penalty, the
latter shall be made applicable: Provided, further, That should the act
or omission punishable under this section be committed by a public
official,
the latter shall be prosecuted under the provisions of existing
applicable
laws.cralaw:red
Sec.
12. All laws or parts thereof,
decrees, orders, rules and regulations inconsistent with the provisions
of this Act are hereby repealed or modified accordingly.cralaw:red
Sec.
13. If any of the provisions
of this Act is declared invalid, the remainder of this Act or any
provision
not affected thereby shall remain in force and effect.
Sec.
14. This Act shall take effect
upon its approval. chanrobles virtuallaw libraryred
Approved:
December
14, 1989
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