bpl process flow - saz

8/3/2019 BPL Process Flow - SAZ

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BBUSINESS PERMIT ANDUSINESS PERMIT AND

LICENSESLICENSES

RICARDO L. BOBIS, JR.RICARDO L. BOBIS, JR.

Municipal TreasurerMunicipal Treasurer

San Antonio, ZambalesSan Antonio, Zambales


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AUTHORITY OF LGUs TOAUTHORITY OF LGUs TO

COLLECT TAXESCOLLECT TAXES

Emanates fromEmanates fromRepublic Act 7160Republic Act 7160

also known as thealso known as the

Local Government Code of 1991Local Government Code of 1991

Book II.Book II.

LOCAL TAXATION AND FISCAL MATTERSLOCAL TAXATION AND FISCAL MATTERS

Title OneTitle OneLOCAL GOVERNMENT TAXATIONLOCAL GOVERNMENT TAXATION

Chapter I. General ProvisionsChapter I. General Provisions

Sec. 129.Sec. 129. POWER TO CREATE SOURCES OF REVENUEPOWER TO CREATE SOURCES OF REVENUE. Each. Eachlocal government unit shall exercise its power to create its ownlocal government unit shall exercise its power to create its ownsources of revenue and levy taxes, fees and charges subject tosources of revenue and levy taxes, fees and charges subject to

the provisions herein, consistent with the basic policy of localthe provisions herein, consistent with the basic policy of localautonomy. Such taxes, fees, and charges shall accrueautonomy. Such taxes, fees, and charges shall accrueexclusively to the local government units.exclusively to the local government units.

Sec. 132.Sec. 132. LOCAL TAXING AUTHORITYLOCAL TAXING AUTHORITY. The power to impose a. The power to impose atax, fee or charge or to generate revenue under this Code shalltax, fee or charge or to generate revenue under this Code shallbe exercised by the sanggunian of the LGU concerned throughbe exercised by the sanggunian of the LGU concerned through

an appropriate ordinance.an appropriate ordinance.


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vests the power to imposevests the power to impose

taxes and generate revenues intaxes and generate revenues in

thethe sanggunianssang

gunians..

However, taxing and revenue-However, taxing and revenue-

generating powers shall begenerating powers shall be

exercised throughexercised through appropriateap

propriate

ordinances.ordinances.


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Two Major Sources of IncomeTwo Major Sources of Income

Externally SourcedExternally Sourced

Internally SourcedInternally Sourced


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Externally Sourced IncomeExternally Sourced Income

consists of share in BIR grossconsists of share in BIR grosscollection or IRA,collection or IRA,

a share in the proceeds froma share in the proceeds fromutilization & development of theutilization & development of thenational wealth,national wealth,

loans, credits and bonds,loans, credits and bonds,

and grants or subsidies.and grants or subsidies.


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Internally Sourced IncomeInternally Sourced Income

Business Tax & other local taxes,Business Tax & other local taxes,

Real Property Taxes,Real Property Taxes,

Income from economic enterprises,Income from economic enterprises,

Fees and charges.Fees and charges.


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PRINCIPLES OF TAXATIONPRINCIPLES OF TAXATION

Taxes must be equitableTaxes must be equitable

Based on the taxpayers ability to payBased on the taxpayers ability to pay

Levied and collected only for publicLevied and collected only for publicpurposespurposes

Must not be unjust, excessive, oppressive,Must not be unjust, excessive, oppressive,or confiscatoryor confiscatory

Must not be contrary to law, public policy,Must not be contrary to law, public policy,national economic policy, or in restraint ofnational economic policy, or in restraint oftradetrade


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Levels of Taxing PowerLevels of Taxing Power

ProvincesProvinces

MunicipalitiesMunicipalities

CitiesCities

BarangaysBarangays


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For MunicipalitiesFor Municipalities

Tax on BusinessTax on Business

Fees and ChargesFees and Charges

Community Tax CertificateCommunity Tax Certificate

Fees for Sealing and Licensing of WeightsFees for Sealing and Licensing of Weightsand Measuresand Measures

Fishery Rentals, Fees and ChargesFishery Rentals, Fees and Charges

Motorized Tricycle Operators PermitMotorized Tricycle Operators Permit

(MTOP)(MTOP)


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TAX ON BUSINESSTAX ON BUSINESS

ManufacturersManufacturers

WholesalersWholesalers

ExportersExporters

Manufacturer, Wholesaler, orManufacturer, Wholesaler, or

Retailers of Essential CommoditiesRetailers of Essential Commodities

RetailersRetailers

ContractorsContractors Banks and other FinancialBanks and other Financial

InstitutionsInstitutions


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COMMON FEES AND CHARGESCOMMON FEES AND CHARGES

Regulatory FeesRegulatory Fees Mayors PermitMayors Permit Garbage Collection FeeGarbage Collection Fee

Zoning/Locational ClearanceZoning/Locational Clearance

Other Fees & ChargesOther Fees & Charges Real Property Tax ClearanceReal Property Tax Clearance

Fire Inspection FeeFire Inspection Fee Sanitary Inspection FeeSanitary Inspection Fee Occupancy PermitOccupancy Permit Occupation/Calling FeeOccupation/Calling Fee


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PROGRESSIVE TAX STRUCTUREPROGRESSIVE TAX STRUCTURE

Calibrated/Graduated Scale ofCalibrated/Graduated Scale of

Gross Sales or ReceiptsGross Sales or Receipts

Percentage BasePercentage Base


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GRADUATED SCALEGRADUATED SCALE

ManufacturerManufacturer

With Gross Sales or Receipt for theWith Gross Sales or Receipt for the Amount of TaxAmount of Tax

Previous Year in the amount ofPrevious Year in the amount of per annumper annum

Less than 30,000Less than 30,000 484.00484.00

30,000 or more but less than 40,00030,000 or more but less than 40,000 726.00726.00

40,000 or more but less than 50,00040,000 or more but less than 50,000 907.00907.00

50,000 or more but less than 75,00050,000 or more but less than 75,000 1,452.001,452.00

:::: :::: ::::

5,000,000 or more but less than 6,500,000 26,812.005,000,000 or more but less than 6,500,000 26,812.00

6,500,000 or more6,500,000 or more

0.4125%0.4125%

of Gross Salesof Gross Sales


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PERCENTAGE BASEPERCENTAGE BASE

Retailers of Other CommoditiesRetailers of Other Commodities

With Gross Sales or Receipt for theWith Gross Sales or Receipt for the Rate of TaxRate of Tax

Previous Year in the amount ofPrevious Year in the amount of per annumper annum

400,000 or less400,000 or less 2.2%2.2%More than 400,000More than 400,000 1.1%1.1%


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PHILIPPINE DEFINITION OF BUSINESS SIZEPHILIPPINE DEFINITION OF BUSINESS SIZE

CharacteristicsCharacteristics Asset SizeAsset Size Number of WorkersNumber of Workers

CottageCottage PhP 500,000 and belowPhP 500,000 and below 1-101-10

SmallSmall PhP 500K - PhP 5MPhP 500K - PhP 5M 11-9911-99

MediumMedium PhP 5M - PhP 20MPhP 5M - PhP 20M 100-199100-199

LargeLarge Over PhP 20MOver PhP 20M 200 & above200 & above


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BASES OF TAXATIONBASES OF TAXATION

For Newly started BusinessFor Newly started BusinessBased on Capital InvestmentBased on Capital Investment

For RenewalFor RenewalBased on Gross Sales or ReceiptsBased on Gross Sales or Receipts

of the preceding calendar yearof the preceding calendar year


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RETIREMENT OF BUSINESSRETIREMENT OF BUSINESS

A business subject to tax shall, uponA business subject to tax shall, upontermination, submit a sworntermination, submit a swornstatement of its gross sales orstatement of its gross sales orreceipts for the current year.receipts for the current year.

If the tax paid during the year be lessIf the tax paid during the year be lessthan the tax due on said gross salesthan the tax due on said gross sales

or receipts of the current year, theor receipts of the current year, thedifference shall be paid before thedifference shall be paid before thebusiness is considered officiallybusiness is considered officiallyretired.retired.


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PAYMENT OF BUSINESS TAXPAYMENT OF BUSINESS TAX

Taxes imposed shall be payableTaxes imposed shall be payable forforevery separate or distinctevery separate or distinctestablishment or place whereestablishment or place wherebusiness subject to the tax isbusiness subject to the tax is

conducted and one line of businessconducted and one line of businessdoes not become exempt by beingdoes not become exempt by beingconducted with some otherconducted with some otherbusinesses for which such tax hasbusinesses for which such tax hasbeen paid.been paid.

The tax on a business must be paidThe tax on a business must be paidby the person conducting the same.by the person conducting the same.


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TAX PERIOD AND MANNER OF PAYMENTTAX PERIOD AND MANNER OF PAYMENT

the tax period of all local taxes,the tax period of all local taxes,

fees and charges shall be thefees and charges shall be the

calendar yearcalendar year..

Such taxes free and chargesSuch taxes free and charges

may be paid inmay be paid in quarterlyquarterly

installmentsinstallments..


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ACCRUAL OF TAXACCRUAL OF TAX

all local taxes, fees and chargesall local taxes, fees and chargesshall accrue on theshall accrue on the 11stst day of Januaryday of Januaryof each year.of each year.

New taxes, fees, and charges orNew taxes, fees, and charges orchanges in the rates thereof, shallchanges in the rates thereof, shallaccrue on the 1accrue on the 1stst day of the quarterday of the quarter

next following the effectivity of thenext following the effectivity of theordinance imposing such new leviesordinance imposing such new leviesor rates.or rates.


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TIME OF PAYMENTTIME OF PAYMENT

All local taxes, fees, and chargesAll local taxes, fees, and chargesshall be paidshall be paid within the first twentywithin the first twenty(20) days of January(20) days of Januaryor of eachor of eachsubsequent quarter, as the case maysubsequent quarter, as the case may

be.be.

The sanggunian may, for a justifiableThe sanggunian may, for a justifiablereason or cause, extend the time forreason or cause, extend the time for

payment of such taxes, fees orpayment of such taxes, fees orcharges without surcharges orcharges without surcharges orpenalties, but only for a periodpenalties, but only for a period notnotexceeding six (6) monthsexceeding six (6) months..


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SURCHARGE AND PENALTIESSURCHARGE AND PENALTIES

The sanggunian may impose aThe sanggunian may impose asurchargesurcharge not exceedingnot exceeding twenty-fivetwenty-fivepercent (25%)percent (25%) of the amount ofof the amount oftaxes, fees or charges not paid ontaxes, fees or charges not paid on

time and an interest at the rate nottime and an interest at the rate notexceedingexceeding two (2%) per monthtwo (2%) per monthof theof theunpaid taxes, fees and chargesunpaid taxes, fees and chargesincluding surcharges, until suchincluding surcharges, until suchamount is fully paid but in no caseamount is fully paid but in no case

shall the total interest on the unpaidshall the total interest on the unpaidamount or portion thereofamount or portion thereofexceedexceedthirty six (36) monthsthirty six (36) months..


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SITUS OF TAXSITUS OF TAXManufacturers,

Wholesalers,Contractors,

Banks, etc.

w/ Branch or Sales

Outlet in

Municipality

Record Sales in

Branch or Outlet in

Municipality

Pay Tax to

Municipality where

Branch of Sales

outlet is located

w/out Branch or

Sales Outlet in

Municipality

Record Sales in

Principal Office in

Municipality

Pay Tax to

Municipality where

Principal Office is

located


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DISTRIBUTION OF TAXABLE 70%DISTRIBUTION OF TAXABLE 70%

Prorate taxable percentage

among LGUs where factories, etc.

are located according to

respective volumes of production

during taxable period

Manufacturer

has 2 or more

factories, etc. in

different

localities

Yes

No

Plantation &

factory located in

same LGU

Yes 70% Taxable by Municipalitywhere factory, etc. is located

No

42% Taxable by Municipality where

factory is located

28% Taxable by Municipality where

plantation is located


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THE BUSINESS PERMIT ANDTHE BUSINESS PERMIT AND

LICENSES OPERATIONLICENSES OPERATION

Before the Operation of any businessBefore the Operation of any business

or of an entity to engage in anyor of an entity to engage in any

business, within its taxing powers,business, within its taxing powers,

one must Apply for Mayors Permit toone must Apply for Mayors Permit toOperate BusinessOperate Business

Upon its Expiration and orUpon its Expiration and or

Before the retirement of BusinessBefore the retirement of Business


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BASIC REQUIREMENTSBASIC REQUIREMENTS

Community Tax Certificate of the OwnerCommunity Tax Certificate of the Owner

Barangay Business ClearanceBarangay Business Clearance

BIR RegistrationBIR Registration

DTI RegistrationDTI Registration

For Corporation, SEC RegistrationFor Corporation, SEC RegistrationCertificateCertificate


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BASIC STEPSBASIC STEPS

APPLICATION.

The Applicant shall secure and

prepare the Basic Requirements

in the Checklist

Checklist of Basic Documentary

Requirements:

.Community Tax Certificate

.Barangay Business Clearance

.BIR Certificate of Registration

.DTI Certificate of Registration

.For Corporation, SECRegistration Certificate


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STEP 2. REVIEWSTEP 2. REVIEW

REVIEW.

Secure and fill out Application

form from the Mayors Office.

Upon initial review of the

License Officer, comply/secure

additional requirements, if any. Other Requirements :

Building Permit Occupancy Permit Locational/Zoning Clearance Environmental Compliance

Certificate (ECC) SSS/PhilHealth Certificate of

Contribution Real Property Tax Clearance from

Municipal Treasury OfficeOther documents as maybe required

depending on the nature of business


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STEP 3. ASSESSMENTSTEP 3. ASSESSMENT

ASSESSMENT.

Submit Application Form

together with the Requirements to

the Treasurers Office for

Assessment.


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Sample of AssessmentSample of AssessmentMayors Permit Fee:Mayors Permit Fee: 2,000.002,000.00

Nature:Nature: Retailer of Essential CommRetailer of Essential Comm..Classification:Classification: SmallSmall

Business Tax:Business Tax: 1,815.001,815.00

Gross Sales or Receipt for theGross Sales or Receipt for the

Previous YearPrevious YearPhP230,000.00PhP230,000.00

Regulatory Charges:Regulatory Charges:

Police ClearancePolice Clearance 100.00100.00

Sanitary InspectionSanitary Inspection 100.00100.00

Business PlateBusiness Plate 150.00150.00

Service Charges:Service Charges:

Health ExaminationHealth Examination 100.00100.00

Garbage Collection FeeGarbage Collection Fee 400.00400.00Occupation/Calling FeeOccupation/Calling Fee 100.00100.00

4,765.004,765.00

Fire Inspection (10%)Fire Inspection (10%) 476.50476.50

TOTAL AMOUNT DUE:TOTAL AMOUNT DUE: 5,241.505,241.50


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STEP 4. PAYMENTSTEP 4. PAYMENT

PAYMENTNO PAYMENT shall bemade or collected

OUTSIDEof the

TREASURERS OFFICE

and without correspondingOFFICIAL RECEIPT.


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STEP 5. INSPECTIONSTEP 5. INSPECTION

INSPECTION.

Present Official Receipt and

Application Form to the

1.) Municipal Health Office for

the Issuance of Application for

Sanitary Permit

2.) Bureau of Fire ProtectionOffice for the Issuance of

Application for Fire Safety

Inspection

These Offices shall schedule

inspection of the business prior

to the release of certificate.


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STEP 6. RELEASESTEP 6. RELEASE

RELEASE.

Release of Mayors Permit

to Operate and Business

Registration Plate.


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OFFICES INVOLVED IN THE BPLSOFFICES INVOLVED IN THE BPLS

Mayors OfficeMayors Office Issuance/Release of Application for Permit to OperateIssuance/Release of Application for Permit to Operate

Treasurers OfficeTreasurers Office Issuance of CTC & Real Property Tax ClearanceIssuance of CTC & Real Property Tax Clearance Assessment, Payment and RecordingAssessment, Payment and Recording

MPDOMPDO Zoning/Locational ClearanceZoning/Locational Clearance

Engineering OfficeEngineering Office Issuance/Release of Application for Building/Occupancy PermitIssuance/Release of Application for Building/Occupancy Permit

Municipal Health OfficeMunicipal Health Office

Issuance/Release of Application for Sanitary Inspection/HealthIssuance/Release of Application for Sanitary Inspection/HealthCertificateCertificate

Bureau of Fire ProtectionBureau of Fire Protection Issuance/Release of Application for Fire Safety InspectionIssuance/Release of Application for Fire Safety Inspection

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