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Late Business Permit Renewal: Avoiding Fines

The penalty for late business permit renewal varies per city, but the consequences are the same – non-complying businesses are subject to monthly surcharge and interest fees that that can snowball pretty quickly. These include:

 

  • 25% surcharge on all unpaid taxes, charges, and fees
  • 2% monthly interest on other fees that remain unsettled, including surcharge, until debts are paid off

 

Moreover, failing to renew your permit or register your business results in a fine ranging from P5,000 to P20,000, and in extreme cases – confiscation of assets and business closure.

 

So how do you avoid late renewal fees? This article discusses the requirements and processes needed to renew your business permit each year.

 

Getting ready to renew your permit

 

When renewing your business permit and Bureau of Internal Revenue (BIR) registration, you’ll go through no less than three government institutions, including the barangay, City Hall, and BIR.

 

The entire process, from gathering the necessary documents to visiting the aforementioned institutions, can take up to several days.

 

So don’t wait until the last minute to renew your permit. In order to renew your permit on time, you need to be aware of any deadlines so that you can plan accordingly.

 

The deadline for renewing business permits is January 20 each year. For this, you must pay a visit to local government units (LGUs), such as the concerned barangay and City Hall.

 

In addition to renewing you business permit, you’ll also have to renew your business registration with the BIR. The deadline for this is January 31 each year.

 

Prepare all the necessary documents in advance to minimize the risk of likelihood renewal due to incomplete documentation and long lines at the offices.

 

Requirements include:

 

Barangay permit renewal

 

  • Accomplished form indicating fulfilled requirements – (1) Original
  • Previous barangay permit – (1) Original and (1) Copy
  • Receipt of payment from last year’s license – (1) Original and (1) Copy