As every year, the Philippines is preparing for the renewal of the local business/mayor's permit, whose deadline is 20 January 2018.
As part of the annual obligation of registered entities in the
Philippines, every business or establishment must renew their
Local Business/Mayor's Permit on 20 January
2018 with the local government unit (LGU).
This year the local business/mayor's permits expires on 31 December 2017. All registered entities in the Philippines must prepare ahead of time, bearing in mind that the application for renewal involves the preparation of multiple application forms and the collation of supporting documents - which can turn into an overwhelming task if done at the last minute.
Penalties for non-compliance
The criminal penalty for "Failure to Register," or for
operating an unregistered business, according to Bureau for
Internal Revenue (BIR) regulations, is a fine of between P2,000 and
P20,000 - depending on the location of the establishment: P20,000
in cities and P10,000, P5,000 and P2,000 in 1st, 2nd and 3rd class
municipalities, respectively - and imprisonment of between 6
months and 2 years.
In addition, entities may receive additional penalties, which also vary according to the location. For example, in Makati City, the penalty for non-renewal of business permits is a 25% surcharge of the total amount due, plus an additional 2% interest for every month of delay until settlement.
In extreme cases of delinquency, such as operating for several years without a business permit, the local government can close business entities until deficiencies and penalties are settled. Seizure of properties and assets of a business is also a possibility.
Get expert help
It is recommendable that entities start the renewal process
early to minimise the risk of non-compliance, as it can be tedious
and time consuming.
TMF Group experts in the Philippines can help by taking the burden away. Through a wide range of services - including business incorporation and registration, business permit renewal, and other related services - TMF Philippines can help entities become and remain compliant.
To learn more on how TMF Philippines can assist in the preparation of all the documents and forms needed for the local business/mayor's permits, contact Paulo.Villareal@tmf-group.com or Rubie.Pregoner@tmf-group.com.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.