Compliance deadlines are looming. It’s time to get ahead of annual BIR certificates and business permit renewal. Do you have all the documents you need ready to kick-off a compliant 2020?
In this article, you will find answers to the most frequently asked questions about BIR registration and business permit renewal in the Philippines, and a review of the consequences of non-timely resumption.
Table of contents
Which permits in the Philippines require annual renewal?
As part of company registration in the Philippines, all businesses receive a business license from the City Hall and a tax certificate from the Bureau of Internal Revenue (BIR). It is important to note that the business permits and BIR certificates both require annual renewal.
What is the deadline for business permit renewal in the Philippines?
The annual deadline for your BIR registration and business permit renewal is 22 January.
Note that the government bodies involved with the business permit renewal are Barangay and City Hall, also known as the Local Government Units or LGUs. Your business registration BIR is handled by the designated BIR Revenue District Office.
What are the consequences of late or no renewal?
If you fail to renew your BIR registration and business permits before the given deadlines, your company will face penalties. Namely:
- 25% surcharge on your unpaid taxes, fees, and charges
- additional 2% monthly interest on what is left unsettled, including the surcharge, until you pay the debts
In case of more serious violations such as operating without proper permits for several years, the LGUs have the authority to confiscate your assets or even stop your business activities until you have settled your outstanding debts.
How long does it take to renew a business permit in the Philippines?
Business permit and BIR registration renewals involve three government institutions. The total time of the process, including getting your documentation in order and visits to the respective institutions, can take several days.
We strongly suggest not to leave the process to the last minute and prepare for it well in advance. This way you will minimize the risk of late renewal that may occur due to insufficient documentation or long queues at the government offices.
Emerhub can ease your troubles and take this tedious task off your shoulders. Contact us via [email protected]. Our consultants will take care of the paperwork as well as visit the authorities on your behalf while you can focus on your primary business.
What are the requirements for business permit renewal in the Philippines?
Here is what Emerhub needs for handling your business permit and BIR certificate renewal:
#1 Barangay permit renewal
Before proceeding with renewing your business license, the first step is to extend your barangay permit. For that, you need to prepare the following documents:
- Original and a copy of your previous barangay permit
- Original and a copy of the payment receipt for last year’s license
- Application form together with fulfilled requirements indicated on the form
#2 Renewal of Mayor’s/Business Permit
After receiving the new barangay permit, we can proceed to the City Hall to renew your business permit, also known as the Mayor’s Permit.
For a seamless process, the following documents are necessary:
- New barangay permit
- Original and a copy of your previous business permit
- Official receipt and a copy of your last payment for the business license
- Past year’s income statement
- Lease contract covering your stay until next year
- Local insurance
- Community tax certificate (CTC)/Cedula
However, as all businesses from sole proprietorships to branches and representative offices need to renew their permits by 22 January, the queues can be quite long. Therefore, it can take up to several weeks for the City Hall to release your new business permit.
#3 BIR registration
The last step of your beginning of the year’s compliance in the Philippines is the renewal of your registration with the Bureau of Internal Revenue.
It can be done by submitting a filled BIR form No. 0605 and paying the related fees at your designated BIR Revenue District Office.
Devote your time to your core business and let Emerhub’s consultants take care of your compliance in the Philippines. Reach out to us by filling in the form below.