Business Consulting BlogBusiness RegistrationIncorporationLocal companies prepare budget, brace for expected delays in local permit renewal 2021

November 18, 20200

Local companies prepare budget, brace for expected delays in local permit renewal 2021

 

 

The on-going pandemic may have caused a few delays in some business activities but there is certainly no stopping the government-mandated annual local permit renewal; and as local companies navigate through half-way of quarter four, the need to plan and prepare for next year’s finances is becoming more vital.

 

 

 

What to consider for Local Permit Renewal 2021?

 

1) Who will do it for you?

For newly registered companies, the process can be very tedious and costly if not planned and delegated to an experienced team or an expert firm. It is only recommended to do this in-house if the company has an internal team of personnel who is highly familiar of the ins and outs of the municipality where the company is registered. But while knowledge and familiarity can be your allies, patience and grit are crucial in the renewal process.

 

2) Confusing deadlines and ordinances

Generally, all business permits expire at the end of each year (31 December) hence, all companies must start the local permit renewal processes before 20th of every January, but different municipalities will have varied priorities. It is important to frequently check the websites of these municipalities but a personal visit to their offices is much more effective in getting timely updates and changes in requirements.

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

 

3) Business tax payments for new and old companies

The business district of Taguig will require newly registered companies to pay their business taxes on a quarterly basis; while other municipalities like Makati City will require semi-annual or annual payments.

Companies which have been registered for twelve (12) months and up may already opt to pay annually which of course, is more efficient.

 

4) Longer queues and more delays

With COVID-19 still around, new and old companies can expect longer queues in application and delays in the release of new permits. Most local government units are strictly implementing social distancing measures and skeletal workforce schedule hence, it is highly expected there will only be a limited number of applicants per day.

But why worry about all these when Triple i Consulting can certainly help you navigate through the business permit renewal the easy way? Talk to one of our consultants how!

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