Requirements for the Business Permit Renewal in Quezon City
BUSINESS PERMIT RENEWAL REQUIREMENTS IN QUEZON CITY 2017
A. Full compliance with previous clearance requirements. Locational Clearance in 2016
B. Payment of business taxes based on gross sales. Be ready to show proof of gross sales in 2016.
1) Renewing the Mayor’s Permit to do business requires the prior payment of business taxes based on gross sales. The computation of business tax due an establishment is based on rates prescribed in the Quezon City Revenue Code and its amendatory ordinances.
2) The process for renewing the permit and paying the tax starts with filling out the Gross Sales Declaration Form in two (2) copies. The owner must sign the form; if unable to do so, it must be signed by his duly authorized representative (in which case, a letter of authorization must be presented).
ORIGINAL DOCUMENTS TO BE SUBMITTED BY BUSINESS TAXPAYER TO SUPPORT SALES DECLARATION
1) Business Permit 2016
2) Tax Bill and Official Receipt received from the City Treasurer’s Office, 2016
3) BIR Certificate of Registration
4) Complete set of Audited Financial Statements (FS) FY of previous year
5) Income Tax Returns FY 2015 filed in April 2016, with proof of payment
6) Quarterly income tax returns 2016, with proof of payment Value Added Tax Returns/ Percentage Tax Returns FY 2016, whichever is applicable
7) Latest Letter of Confirmation (LOC), if applicable Certified breakdown of sales, if there are two or more lines of business, in the case of consolidated statements
ADDITIONAL REQUIREMENTS FOR QC BUSINESSES WITH OPERATIONS OUTSIDE QUEZON CITY
1) 2017 Community Tax Certificate for businesses outside Quezon City
2) Proof of business tax payment or Tax Bill issued by other local governments (LGUs) where other operations are situated
Basis for Evaluation of Gross Sales.
The business taxpayer must present the following documents (all original copies) to the authorized employees of the Inspection and Examination Division of the CTO, along with the two copies of the Gross Sales Declaration Form:
- Mayor’s Permit (immediately preceding year)
b. Latest Tax Bill and Official Receipt received from the City Treasurer’s Office
c. Comparative set of Audited Financial Statements (FS) FY (for immediately preceding year and the years before), which must be signed by an accountant who is duly accredited by the Bureau of Internal Revenue, Board of Accountancy – Professional Regulation Commission (PRC), or the Securities and Exchange Commission
d. Income Tax Returns FY (immediately preceding year )
e. Value Added Tax Returns/ Percentage Tax Returns FY (immediately preceding year)
f. Latest Letter of Confirmation, if applicable
g. Breakdown of sales, if there are two or more lines of business, in the case of consolidated statements
Those who cannot provide credible proofs of gross sales, as in the documents (3) to (7) listed above, will be subject to the estimate of Gross Sales based on the Presumptive Income Level of Assessment Approach (PILAA). The PILAA is a tax tool which enables the local government unit to set a certain income level standard for various business entities based on industry factors. The Bureau of Local Government Finance (BLGF) cited the use of the PILAA in the case of First Planters Pawnshop, Inc. vs. City Treasurer of Pasay City [CTA (EB) No. 501, 10 December 2010], which provides that the PILAA may be used to compute LBT if the taxpayer is unable to provide proof of its income.
Obtaining the Renewed Mayor’s Permit
Those renewing their business permits have to make sure that they have on hand the following documents:
- Original copy of their previous year’s Mayor’s Permit for business (if not available, a photocopy will be acceptable)
- Photocopy of machine-validated, current-year Official Receipt showing payment of business tax
- Original copy of barangay clearance for current year
- Other documents as required by the evaluator, such as:
1) Locational clearance (current year)
2) Fire safety inspection certificate (FSIC) (previous year)
3) Health certificate (previous year)
4) Sanitary permit (previous year)
5) Certificate of electrical inspection (previous year)
6) Mechanical permit (previous year)
After the taxpayer completes the above requirements, he is given a claim stub indicating the pick-up date for the renewed business permit, plate and sticker. The Mayor’s Permit, together with the sticker indicating the current year, shall be made available for pickup at the BPLO transaction window.