An Act Promoting Job Generation By Providing Additional Incentives To Micro, Small And Medium Enterprises (“Jobs Act”)
- The “Jobs Act of 2013”, aims to stimulate the growth of MSMEs by exempting them from certain strict government regulation.
- Increasing the threshold amount of the assets used in the classification of MSMEs to the following: from not more than P3 million to not more than P5 million for micro enterprises; from P3,000,001 to P15 million, the threshold amount for small enterprises is now from P5,000,001 to P15 million; while it remains the same for medium enterprises, from P15,000,001 to P100,000,000.
- Exempting micro enterprises from income tax and the Minimum Wage Law, provided that they give their employees the same benefits given to any regular employee like social security and healthcare benefits.
- Exempting micro, small and medium enterprises from Value-Added Tax (VAT) registration and Percentage Tax for those whose annual gross selling price or gross value in money received from the sale, barter, or exchange of goods, as well as the annual gross receipts derived from the sale or exchange of services do not exceed Three Million Pesos (P3,000,000.00).
- Allowing a deduction in the amount of P40,000.00 from the gross income of registered small and medium enterprises for each new employee hired. The maximum allowable deduction is pegged at Eighty Thousand Pesos (P80,000.00) for two or more new jobs created.
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