Article

Philippines’ Mayor’s permit renewal deadline is approaching

28 November 2017

As every year, the Philippines is preparing for the renewal of the local business/mayor’s permit, whose deadline is 20 January 2018.

Countries:

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.
 
Written by

Cyril H Manalo

Corporate and tax compliance at TMF Philippines

Insights and updates delivered to your inbox.

Sign up to receive a weekly round up of posts that matter most to you. 

Sign up now