|Process for Renewing Business Permits in Quezon City|
The process of renewing the Mayor's permit to do business requires the filing of an application form for renewal. The form can be obtained from the Business Permits and Licensing Office. The processing of this application for renewal will take into consideration the following prior processes that must have been taken by the business owner:
A. Full compliance with previous clearance requirements. The business owner should be ready to show proof of having obtained previous clearances.
Before a business can apply for the renewal of its permits to do business in Quezon City, it must have completed/updated all the clearances required of it the year before. Business owners are therefore required to be ready to present proof of local clearances obtained for the previous year's operation. Also, before filing its application form for renewal, the business must have already renewed its Zoning Permit at the City Planning and Development Office. The updating and payment of Zoning Permit may be done in December, before the January renewal period starts.
B. Payment of business taxes based on gross sales. Be ready to show proof of gross sales in 2014.
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.
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).
In the Local Government Code, "Gross Sales or Receipts include the total amount of money or its equivalent representing the contract price, compensation or service fee, including the amount charged or materials supplied with the services and deposits or advance payments actually or constructively received during the taxable quarter for the services performed or to be performed for another person excluding discounts if determinable at the time of sales, sales return, excise tax, and value-added tax (VAT)." [Book II, Section 130(n) of the Local Government Code]
The Gross Sales Declaration Form is downloadable from the quezoncity.gov.ph website. It may also be obtained from City Treasurer's Office (CTO) personnel at the Ground Floor of the Quezon City Hall High-rise Building during the renewal period. If the Gross Declaration Form is incompletely filled up, it will not be processed for evaluation.
SPECIFIC STEPS FOR THE RENEWAL PROCESS
The applicant for renewal must go through each step consecutively; for example, he cannot go to Step 3, without having gone through Steps 1 and 2:
Step 1: Initial evaluation of Gross Sales
This step seeks to provide the basis for the business tax. The task of the CTO Revenue Examiner is to determine the annual Gross Sales of the taxpayer for the immediately preceding year, based on credible documents presented. The Examiner must compute for any findings, deficiency/delinquency taxes, with such computation to be written legibly at the back of the Gross Sales Declaration form.
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:
a. 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.
Step 2: Assessment of business tax
The Evaluator shall indicate the gross receipts/sale in the Gross Receipts Declaration Form (under "Findings") and certify the same with his/ her signature. The Gross Receipts Declaration Form shall be returned to the taxpayer and he/she shall bring this to the Assessment Clerk assigned at the Business Tax Assessment Lounge for the computation of the amount due and the printing of the Tax Bill. The Tax Bill shall include the cost of the community tax certificate for corporations, partnerships or single proprietorships.
Step 3: Final evaluation and review
Pursuant to Memorandum Circular No. 8 series of 2013, Office Order No. 122 series of 2013, and subsisting Executive Orders, this step is performed by the Review and Audit Team, a special team created and authorized by the Mayor to act on his behalf and perform the final review of the correctness of the evaluation and/or assessment. It is composed of the Examination Division Chief, a representative from the Business Permits and Licensing Office (BPLO) and a representative of the Mayor.
The Review and Audit Team performs the final evaluation and review of all assessments and billings performed under Step 2. This Step requires review of all documents submitted/presented in Step 1.
Please note that:
a. In case of loss, the Original Billing for current year may only be reprinted once. Succeeding reprinting of the Original Billing shall be subject to evaluation and submission of sworn statement of such loss;
b. The QC Information Technology Development Office shall submit to the Review and Audit Team, a certified Assessment History of all registered businesses covering a period of five (5) years.
c. Validation is made through SEC I-view
d. Rebilling, if necessary, may only be entertained upon the written authorization of the authorized representative of the Mayor.
e. Unblocking and Blocking procedure of tax accounts may only be performed by concerned heads of offices/departments and accountable career employees of the Business Permits and Licensing Office (BPLO) and the City Treasurer's Office (CTO), at the Assessment Lounge of Quezon City Hall.
Step 4: Payment of taxes and fees
The Mayor, through his representative, who in this case is the head of the Business Permits and Licensing Office, and the Treasury Department head shall cause the approval, first, of the Final Billing and then, of the Order of Payment. The taxpayer then pays the corresponding amount indicated in the Tax Bill to the Cashier assigned at the Taxpayers' Assessment Lounge, and the latter shall print and issue the corresponding receipt.
The tax bill contains the business taxes to be paid, the community tax for business, as well as all Mayor's Permit fees and charges related to business renewal. The computation of fees and charges are automatically generated by the system operated by the QC ITDO under the QC-LGU computerized revenue system.
The rate of annual business permit fees is provided for in Article 21, Section 82 of the Quezon City Revenue Code. In no case shall the Mayor's Permit Fee exceed Php 10,000 per annum.
Step 5: Obtaining the Renewed Mayor's Permit
The business owner or his authorized personnel presents the official receipt indicating the payment of the tax bill, to the Business Permits and Licensing Office. The BPLO chief is authorized to renew or cause the issuance of the business permits for the current year.
At this point, the BPLO chief checks to ensure the business establishment's full compliance with previous year's clearance requirements and the establishment's current year locational clearance. Noncompliance with previous year's clearance requirements shall be cause for further assessment by the BPLO on the establishment, before the application for renewal is approved.
To obtain the renewed permit, the process is as follows:
Taxpayers proceed to the basement of Civic Center Building A, where a staff from the BPLO's Public Assistance Group (PAG) will assist them in going through the entire process.
Those renewing their business permits have to make sure that they have on hand the following documents:
a. Original copy of their previous year's Mayor's Permit for business (if not available, a photocopy will be acceptable)
b. Photocopy of machine-validated, current-year Official Receipt showing payment of business tax
c. Original copy of barangay clearance for current year
d. 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.