Are you done renewing your business permit for this year. Some local government units (LGU) have extended their deadlines to spare business owners time to process the renewal process.
While some LGUs have stick to the normal deadline every 20th day of January every year.
Other LGUs adopted a flexible schedule of renewing business permits. To give you an example, if you registered your business on May 14, 2021, you must renew your business on or before May 14, 2022, to avoid penalties and surcharges.
In this guide, I’ll share my experience with business permit renewal. Note that the procedures will still vary depending on the LGU and if your business is a complex one.
If your business is a water-refilling station, then you have other permits to renew aside from doing business permit renewal.
This business permit renewal guide is based on the actual procedures done in the municipality of Urbiztondo, province of Pangasinan.
I’ll include the actual costing incurred and paid during the business permit renewal.
Let’s dive into the actual procedures.
Business Permit Renewal 2022 Documentary Requirements
You need to bring some requirements when renewing your business. Here are some of those following requirements.
1. Old Business Permit or Mayor’s Permit
This is proof that you registered your business or have an existing business registration.
2. Old Business Permit Official Receipts
This will be used to assess and compare your current business tax dues. Some LGU will not require it but it’s better to bring this with you.
3. Annual Income Tax Return (ITR)
Since you’re renewing your business, LGU will need a basis of business tax computation and that would be your annual gross receipts or gross sales from the previous year.
For business permit renewal 2022, the basis will be the earnings from January to December 2021.
Some businesses haven’t yet sorted out their financial documents or the annual ITR so they need to present a Sworn Declaration stating their earnings on the previous years.
Other LGU will require the business owner to present the Percentage Tax Returns or VAT Returns as one of the proofs of earnings in the previous years.
4. Barangay Clearance
Some LGUs require barangay clearance of the owner during the business permit renewal process. So it’s better to have it ready.
5. Community Tax Certificate (Cedula)
You need to pay the community tax also. The amount will depend on the business earnings in the previous year.
Business Permit Renewal 2022 Procedures
As I said above, the procedures will depend on your LGU and the type of business you own. However, this business permit renewal guide will serve as a standard procedure.
Fortunately, almost if not every LGU has a separate section in the municipal or city hall called Business One-Stop Shop (BOSS).
This will ease the business permit renewal process. The shop comprises of different government agencies that will cater to your business permit renewal process.
The BOSS has the LGU, BFP, and sometimes the BIR.
Follow the steps below for the actual business permit renewal process.
Step 1: Fill up the Business Permit Renewal Form
The first step of business permit renewal is filling up the renewal form. You can obtain this form from the officer in the LGU section first.
The business permit renewal form is not the same for all LGUs. In my case, the business permit renewal form is the same as the one I filled up during the new business permit registration.
But this time, I tick the “Renewal” box instead of “New Registration”.
The business permit renewal form will also contain the owner’s or owners’ information such as name, birthdate, address, and contact information.
You’ll also need to supply the business information itself including the name of the business which is the trade name stated in your DTI Business Name Certificate, business address, contact information, and other pertinent information.
In the bottom part of the business permit renewal form, you’ll need to input your gross sales of gross receipts. This will be the basis of the computation of the business tax.
The amount shall be the gross income and not the net income. For example, if you sold 10 shoes worth ₱100 each, then the gross sales or gross receipts would be ₱1,000.
Step 2: Submit Your Business Permit Renewal Form to the LGU Officer
You need to attach the documentary requirements mentioned above. The LGU officer will assess the business permit renewal fees based on the gross sales or gross earnings in the previous years.
After the assessment, you’ll be asked if you want to pay the amount of tax dues or continue the business permit renewal process on the other days.
If you choose to pay, then you’ll now proceed to Step 3. Otherwise, you’ll continue the renewal process on or before the deadline.
In my case, I paid all the business tax dues to continue the renewal process.
Step 3: Proceed to the BFP Section
The next step is to go to the BFP section. In this step, you’ll be required to fill up the renewal form by the BFP officer and assess the necessary amount you’ll pay.
The amount will depend on the business tax you’ve paid from the previous steps. The minimum amount to pay in the BFP is ₱500.
In my case, I paid ₱500 based on the assessment of the BFP officer. But before the officer collected the amount, he required me to bring the fire extinguisher unit our business had for reconditioning.
If you don’t know yet, you need to annually bring your business fire extinguisher unit to the fire station for reconditioning purposes. This is required whether you have used it or not.
Step 4: Go Back to the LGU Section of the BOSS
After the payment was made to the BFP, you need to go back to the previous section the BOSS which is the LGU section. You will then submit the completed business renewal form.
In our LGU, it’s pretty much integrated in the sense that they’ll be the one to forward the application form to the health center for sanitary permit renewal.
In this regard, my business permit renewal only took an hour including the time of waiting and falling in line as well as bringing the fire extinguisher unit to the fire station.
Step 5: Wait for the Releasing of Business Permits
After you’ve completed your business permit renewal process, you’ll now wait for the business permits to be released.
The LGU officer told me that it will take two to three days to have my business permits released. The business permits will include the Mayor’s Permit, Sanitary Permit, BFP Certificate, Business Plate, Business Sticker (in the permit itself).
Now that you have your business permits on your hand, the best thing to do is to scan all the permits and save a PDF copy of yours for emergency purposes.
The original copies of your business permits will then be displayed in a visible area where your customers can see them.
Business Permit Renewal Fees 2022
Business renewal fees will depend on the type of business you own as well as the LGU where your business is located. It’s the best practice to have a short talk with the officer on how they have computed your business permit renewal fees.
In my case, I’ve observed that the same percentage for the business tax was applied to the junk shop business of my brother but the percentage for my own business had increased.
Junk Shop Business Renewal Fees
Here are the complete fees I paid for the business permit renewal of my brother’s junk shop.
| Type of Fees | Amount in PHP |
|---|---|
| Mayor’s Permit | ₱ 400 |
| Business Tax | 3,993 |
| Sanitary Inspection Fees | 400 |
| Health Permit Fees | 200 |
| Occupational Tax | 400 |
| Weights and Measures Fees | 250 |
| Business Sticker | 50 |
| Business Permit Fees Total | 5,693 |
| Other Fees Required | |
| Cedula | 61 |
| BFP Fees | 500 |
| Barangay Clearance | 80 |
| Other Fees Required Total | 641 |
| Overall Total | ₱ 6,334 |
Piso WiFi Business Renewal Fees
My business is a Piso WiFi business. I sell Piso WiFi vending machines and Piso WiFi parts. Here are the renewal fees I paid for my business.
| Type of Fees | Amount in PHP |
|---|---|
| Mayor’s Permit | ₱ 300 |
| Business Tax | 726 |
| Garbage Collection Fees | 250 |
| Building Inspection Fees | 200 |
| Electrical Inspection Fees | 120 |
| Sanitary Inspection Fees | 200 |
| Health Permit Fees | 100 |
| Occupational Tax | 200 |
| Business Plate | 250 |
| Business Sticker | 50 |
| Business Permit Fees Total | 2,396 |
| Other Fees Required | |
| Cedula | 35 |
| BFP Fees | 500 |
| Barangay Clearance | 80 |
| Other Fees Required Total | 615 |
| Overall Total | ₱ 3,011 |
Final Thoughts
What do you think of the Business One-Stop Shop (BOSS)? I think it’s a good thing to exist especially in these times of pandemics. It helped me a lot in renewing my business permits so I can operate my business legally and free from legal damages. So you should renew your business permits too.
Share your experiences on the business renewal process in the comment section below.
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