Pointers in Renewing 2018 Business Permit in the Philippines
For us to start the year right, we must bear in mind all necessary requirements for the beginning of yet another business calendar year. One of which is the renewal of business permit registration with the Local Government Units (LGU) – city or municipality of business location in the Philippines. Notably, in the absence of a local business permit in the Philippines, your business could be said to be illegal.
Under Local Government Code of the Philippines, in general, all local taxes, fees and charges accrues as of January 1 of each year (Section 166) and shall be paid within the first twenty (20) days of January or of each subsequent quarter, as the case may be (Section 167). Failure to renew business permit in the Philippines with the municipal or city treasurer’s city could result to penalties not exceeding 25% of the amount of the unpaid taxes, fees, and charges plus an interest at the rate not exceeding 2% per month up to 36% of the unpaid taxes, fees or charges including surcharges, until such amount is fully paid (Section 168).
Requirements for the Processing of Business Permit Renewal
Each city or municipality in the Philippines has their respective list of documentary requirements and we suggest that you get one as reference. In processing such business permit renewal in the Philippines, please be reminded of the following basic requirements that are generally required by the business permit and licensing office of the municipal or city:
The above requirements for business permit renewal in the Philippines could be prepared ahead as early as year-end of 2017 so they are readily available by January 2018 in time for processing the business permit renewal in the Philippines. LGU may further require other documentary requirements when applicable, but at least, you have the above basic requirements so you may just need a little time with the additional documents for business permit renewal in the Philippines.
Business Permit Renewal Fees in the Philippines
Fees that may be incurred on the process of business permit renewal in the Philippines varies based on city or municipality of location in the Philippines. Incidentally, the following are the common business permit renewal fees in the Philippines:
Each city or municipality has its own tax code providing for the specific business tax rates and fees and you can refer to them that you could estimate so much funds for the payment. Alternatively, you can just compare the sales of 2016 in relation to 2017 to determine the level of business permit renewal fees for 2018 business permit in the Philippines. Payment is normally not later than January 20, 2018 so it is suggested to have so much funds ready, although at time, the city or municipality may extend payment at its discretion.
Procedure for Application for 2018 Business Permit Renewal Philippines
The personnel of the business permit licensing office of the LGU will evaluate all submitted documents for the computation of business taxes and other necessary fees. Upon finding such documentary requirements for business renewal in the Philippines in order, the personnel will then issue an assessment form that will be used as reference for payment of the dues that the applicant may either proceed for payment or contest the same for a lower assessment, if it has basis.
Upon payment, business permit licensing office of LGU will then schedule an inspection for the issuance of the Fire Safety Certificate and the 2018 Business Permit may be released within 2-5 working days from such inspection. At times, the LGU dispense with such inspection and issue the 2018 Business Permit renewal in the Philippines.
At this juncture, we hope you are now ready to renew your 2018 Business Permit in the Philippines and we wish you good luck!
By: Ms. Julie Ann B. Zuniga
Senior Tax Associate
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