Reminder on renewal of 2015 LGU registration
Under the Local Government Code (LGC), all business establishments are required to renew annually their registration with local government units (LGUs). The annual renewal of business registration consists of, but is not limited to, payment of local business tax (LBT), mayor’s permit fee, sanitary inspection fee, garbage fee, building inspection fee, electrical inspection fee, mechanical inspection fee, plumbing inspection fee, fire inspection fee, personnel fee, business plate registration fee and other charges imposed by the different LGUs.
The LBT is based on gross sales/receipts while the applicable LBT rate varies depending on the trade or commercial activity undertaken by the business establishment. Situs rules apply if your company maintains a branch, factory, warehouse, or plantation in different localities. For the mayor’s permit and other fees and charges, these are usually imposed at a fixed amount by LGUs
The annual local taxes and fees for renewal of business permits/licenses are due on or before January 20, 2015.
Please be aware that late payment of local business tax, fees and other charges will attract 25 percent surcharge on the unpaid taxes, fees or charges plus 2 percent interest per month which will include not only the unpaid amount but also the surcharge. On the other hand, business establishments which fail to renew their business permit or license are not allowed to operate within the territory of the concerned LGU.
Knowing the rules and preparing early for the renewal of your business registration is necessary to avoid mistakes and late payment penalties. If you have any questions regarding the renewal process, please feel free to e-mail firstname.lastname@example.org or call us at 988 2288 loc. 550.