Summary

RMC No. 07-2014 clarifies and restates the registration and compliance requirements of Marginal Income Earners (MIE) under RR No. 7-2012.

Who is an MIE. An MIE is a self-employed individual, not an employee, with gross sales or receipts not exceeding P 100,000 in any 12-month period. The activity must be principally for subsistence or livelihood.
Examples and exclusions. MIEs include, but are not limited to, farmers and fishermen selling directly to ultimate consumers, small sari-sari stores, small carinderias or “turo-turos”, and single-unit tricycle drivers or operators. They do not include licensed professionals, consultants, artists, sales agents, brokers and similar persons, or anyone whose income is subject to withholding tax.
Registration. The MIE registers using BIR Form 1901 with a Sworn Statement of Income for the year and a National Statistics Office Certified or Local Civil Registry Birth Certificate. The BIR District Office issues the Certificate of Registration and ensures books of accounts are registered and an Authority To Print is issued for Principal Receipts/Sales Invoices.
Exemptions. The MIE is exempt from the Annual Registration Fee. The MIE is also exempt from business taxes, meaning Value-Added Tax or any Percentage Tax.
Other compliance. The MIE registers books of accounts, such as a two-column journal or other simplified books. The MIE issues registered principal receipts or sales invoices as prescribed under RMO No. 12-2013, and files and pays the Annual Income Tax Return using BIR Form 1701 like other self-employed individuals.

Marginal Income Earners with gross sales or receipts not exceeding P 100,000 in any 12-month period

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

RMC No. 07-2014: Clarifies the issues on the registration and compliance requirements of Marginal Income Earners pursuant to Revenue Regulations No. 7-2012