You’ve got questions, we’ve got answers! Here are some of the FAQs on renewing annual business permits in the Philippines.
I just registered my business last September, do I need to renew again?
The answer is yes. All businesses — from freelancers to corporations — must renew business permits by January 20 of every year.
We didn’t have any operations this year, do I need to renew my permits?
Yes you do. When you go through the process, you’ll need to submit an affidavit of non-operation covering the business’ dormant period.
What do I need to renew anyway?
You’ll get the following updated documents:
- Barangay Clearance
- Renewed Mayor’s Permit
- Sanitary Permit
- Fire and Safety Permit
- Business Plate
- CGL Insurance
- BIR Form 0605 for Annual Registration
- New stamped manual books of accounts, if applicable
What do I need to submit for the renewal process?
Corporations and sole proprietorships are required to submit a certificate of gross sales for the past year along with their BIR returns. This will be the basis for the assessment of your business tax for the new year. You also need to show your Fire Safety Inspection Certificate, Community Environment and Natural Resources Office (CENRO) Permit, Sanitary Permit, and Locational Clearance. Not all cities have the same requirements, but better to be prepared!
How much does it cost to renew my permits?
For a freelancer or consultant it will cost you P500 when you file the form 0605 with with the BIR.
For a sole proprietorship or corporation, your fees will depend on the assessment from the city treasurer’s office. One part of what you pay will be fixed rates for things like the Sanitary Fee, Garbage Fee, etc. The other part are the taxes based on the previous year’s gross sales. Then you will also pay P500 when you file the form 0605 with with the BIR.
How long will it take?
It can take anywhere from a day to a few weeks. It’s not really the process itself that takes long, but waiting in line that might take up a lot of your time, especially closer to the January 20 deadline, when everyone else is doing it too.
From our experience, if you file your paperwork between January 1 – 10, you should be able to get your business tax assessment after about 3-4 hours of lining up for various requirements. As the renewal deadline approaches, you’re likely to encounter longer and longer lines, requiring you to spend more than a day to accomplish all the steps for renewal.