business permit

[Jonga]

i'm a moron when it comes to business and stuff

is it true?
a business permit is a document that tells people you have the right to do business, to get money from them in exchange with your services or products, you will go to jail if you raise revenue without this permit.

it expires and you have to renew them i think every 5 years

you have to pay income tax when you renew your permit.

questions:
can i have multiple business permits?
what if i earned around 10M, and i dont wanna pay tax, i'll just get a new permit, is this possible?

[trizfores]

you do need a business permit, and you do have to pay taxes. you can have multiple permits if you have different branches or offices. you're asking for the impossible, unless you want to break the law, then it's possible.

[Jonga]

if i dont have a permit, then does it mean i do not have proof of having a business so i do not pay taxes? let's say in 5 years i didn't fixed my bookkeeping, so i dont have any records, so there is no basis for taxing right? do i have to pay them? Is there a penalty say i "Forgot" to pay them?

[ichi]

negligence can still get you into trouble... BIR checks registered companies almost every year or depending on their status. There are times that whenever they smell that a company is fishy, they do inspections and even go to the office directly. Good luck on evading taxes...

[council]

business permits, along with mayor's permits, are renewed yearly.

as for the BIR, you need to register, also yearly, to renew your certificate of registration (BIR for 2303). they do random checks of establishments, and do tax mapping yearly to make sure that companies pay what is due.

[trizfores]

setting up a business requires all the papers. registration and papers. without them, you won't be able to have your business. you have to issue reciepts that are printed from the printing press with a tax or tin number. wihtout that number, you won't be able to issue reciepts, so, no customers would like to perform business with you. the reciepts must be tracked by a CPA, or someone from the BIR. this is a MUST.

yes, you have the option not to have your papers fixed and not pay your taxes, but the outcome would be that you would go to jail. would you want to go to jail? it's your choice.

[Japorms09]

You need:
Business Permit
Barangay Permit
DTI or SEC Registration
SEC, other agencies license (it depends on the business type)
BIR registration for the tax

you could evade taxes by not issuing receipts all the time and there are other means as well.

If you have more questions you can PM me, im not that busy anyway.

[Jonga]

if i sell cigarette in the streets, like the "takataks", or hopia mani popcorn in buses, do i have to pay taxes? Do i have to get business permits? Let's say it's a bigtime venture of hopia mani popcorn business that earns more than a million a month, don't ask how, it's just an example.

how bout those freelance, like i make you your thesis you pay 10K type of earning?

[trizfores]

no. i don't think freelancers are taxed.

[Jonga]

so can i sell goods or services as a FREELANCER so that i don't need to pay taxes but still not breaking the law?

[missywitchy]

just my 2 knuts.... even FREELANCERS, example: lawyers, accountants, actors, artist and the likes are still required by law to file ANNUAL INCOME TAX ....in fact every Filipino earning income is required to pay Income Tax....the only exception are those whose income falls below the minimum amount mandated by the BIR. I'm not sure about the last one.... try going to the LEGAL THREAD and ask the legal beagles... I'm sure someone there would be able to help you. :-)

[lady_insong]

Having a business... means having the necessary permits and registrations to operate...
If your business is a single pro... you need to have the following
1. DTI Registration
2. Mayors Permit
3. BIR Registration
and you need to file all the necessary taxes due to u yearly and monthly...

If its a corporation... then start with the SEC Registration..then follow the steps from the DTI to the BIR...

Not having a business permit and other licenses means you have no business at all.....;) :)

[vinta18]

if i sell cigarette in the streets, like the "takataks", or hopia mani popcorn in buses, do i have to pay taxes? Do i have to get business permits? Let's say it's a bigtime venture of hopia mani popcorn business that earns more than a million a month, don't ask how, it's just an example.

how bout those freelance, like i make you your thesis you pay 10K type of earning?

Kung small-time ka lang hindi ka papansinin. The bigger your business, the easier it is for the BIR to spot you.

Freelancers are taxed, too. I teach part-time and tax is deducted from my salary. I declare this withholding tax when I declare income tax. When I write articles for magazines they also withhold a part of the fee.

Kung informal lang, like typing theses, di na tinatax. Pero technically dapat mayroon pa ring tax.

You can choose to go underground and not register but that also means you can't rent property or get a phone line for your business.

[rambo9367]

Im a BIR auditor and i always receives "lagay" from some business establishments". Thanks for my kickbacks, im earning millions annually. i advice entrepreneurs to put bribes or "lagay" instead of paying legally. It doesnt only save you money, it also is hassle-free. But the best part is i earn money from from bribes.

[Bail]

how about home based businesses like online selling?kailangan pa ba ng business permit?

[Bail]

bump bump bump :D

[Jonga]

Im a BIR auditor and i always receives "lagay" from some business establishments". Thanks for my kickbacks, im earning millions annually. i advice entrepreneurs to put bribes or "lagay" instead of paying legally. It doesnt only save you money, it also is hassle-free. But the best part is i earn money from from bribes.

wow so its true....can you tell us who are doing lagays?

shempre indi dba :lol:

bobo ko **** :bop:

[GOwin]

Yung binanggit mong "5 years", you're probably referring to your DTI business name registration. That paper doesn't give you any right to go into a business, just a permit to use the name for the next 5 years. However, if your business is a single-proprietorship type and you don't plan to use any business name other than your own, then you are exempt from registering it to DTI. However, even if you do use your own name, you are still encouraged to do so.

Again, DTI registration is not a permit to conduct business. You need to get your business permit (aka Mayor's permit) to be able to do this. You would also need to register your business with BIR so you can be taxed properly.

You may not want to pay taxes (who does, anyway?) but you're required to do so by law. <shrug>

Whether you're "home-based", or "freelancer", or "part-timer" or use any other name you want, as long as you generate income, you're liable for tax for any of these business activities.

[ate germs]

how do i pay taxes kung video game arcade ang business ko? yung tipong huhulugan ng piso piso tapos pinupwesto ko lang sa mga tindahan? syempre di naman ako magiissue ng resibo dun dba?

[GOwin]

True, but you can always monitor your sales right? ;-)

ate germs,
How's the ROI for that kind of biz? Teka, is this the same as video karera??

[Bail]

how come most of the online seller dont have business permits

[perkins]

let us all remember:
all revenue-generating activities, business or labor in nature, not otherwise exempted by law or the constitution are taxable, no matter how big or small.

however, for practicality, there are certain enforcement issues in this regard:

1. salaries and wages are easiest to tax because of accounting controls in taxing employees - who have no participation in the taxation process.

2. corporate and the rest of formal business entities range from fair to difficult to tax regardless of accounting controls - due partly to complexity of certain transactions and the unwillingness/non-virtue of the business owners/managers to fully comply with this patriotic duty.

for one, they manage the respective controls within their companies.

3. non-formal income activities which may include the so-called underground economy (mobile peddling, videoke machines, bote-dyaryo and the likes) are also taxable but not being given enforcement attention maybe due to possible not-so-material proceeds compared to salaries, wages and corporate taxes.

you will note that even such corporate or formal activities as public utility transport, certain professional services and maybe online selling, etc. might be difficult to tax for reason that there are no well controlled specific monitoring procedures in place by the BIR.

example: for professional services of doctors and lawyers and the likes, the BIR seems helpless enough to even anchor its collection hopes on the people to ask for receipts.

[treefingers]

question about DTI registration:

a friend got a DTI registration (im not sure if it's business NAME registration or business registration, basta yung sa dti daw kinukuha) like 3 years ago for her small pizza business (franchise, single proprietorship). her pizza business didn t flourish and folded up only after a few months.

now she has a new business...franchise ng Coffee Nook w/ several branches.

her question is: can she 'transfer' the business name/dti registration from her pizza business to her coffee venture?baka daw kasi mahal yung fees at matagal etc pag kumuha pa sya ng bagong dti reg.

yung plano nya is to 'transfer' her DTI reg. by simply UPDATING the information submitted in her pizza registration. Yung description daw kasi dun sa permit nya e “PIZZA AND OTHER FROZEN PRODUCTS”. Pwede ba yun update nya at gawin na “COFFEE/BEVERAGE AND OTHER FOOD PRODUCTS …or something “. Tapos update nya nalang din daw yung address dun sa permit kasi yung nakalagay dun branches ng dating business, ngayon iba na yung mga locations ng coffee carts.

Thanks!

treefingers

[krispie]

i have the same question could you transfer your dti registration from one business to another by just updating the registration?

my permit already exprired? what would be cheaper? applying for a new one or just renew the old one?

please enlighten me with this.. thanks

[ate germs]

True, but you can always monitor your sales right? ;-)

ate germs,
How's the ROI for that kind of biz? Teka, is this the same as video karera??
uy di sya video karera ha hehehe... playstation gamit namin. puro games lang talaga.

[mahadera25]

may question po ako...

pano ba talaga ang step by step na pagkuha ng mga legal docs para sa isang business na single propreitorship?!

please help me... kasi wala ko makita sa internet ng steps na ito eh..

for example magoopen ako ng sarili kong coffee shop...

1) ok lang ba na magsimula na ko magbenta kahit wala pang permit? kuha n lang ng permit pagka nakasimula na ko?

2) may step by step ba talaga o pwedeng sabay sabay kunin ang lahat?

3) *** TIN ko ba na ginagamit sa company na pinagtatrabahuhan ko un din ang TIN na gagamitin ko sa business ko?

4) ano pa ba ang tips na pwede nyo ibigay kasi ngayon lang talaga ko magbubusiness and wala ko makausap na sanay na sa pagopen up ng isang business.

tnx po sa mga gusto sumagot.

[m_ke2]

may question po ako...

pano ba talaga ang step by step na pagkuha ng mga legal docs para sa isang business na single propreitorship?!

please help me... kasi wala ko makita sa internet ng steps na ito eh..

for example magoopen ako ng sarili kong coffee shop...

1) ok lang ba na magsimula na ko magbenta kahit wala pang permit? kuha n lang ng permit pagka nakasimula na ko?

2) may step by step ba talaga o pwedeng sabay sabay kunin ang lahat?

3) *** TIN ko ba na ginagamit sa company na pinagtatrabahuhan ko un din ang TIN na gagamitin ko sa business ko?

4) ano pa ba ang tips na pwede nyo ibigay kasi ngayon lang talaga ko magbubusiness and wala ko makausap na sanay na sa pagopen up ng isang business.

tnx po sa mga gusto sumagot.

1) pwede ka na magbenta pero may risk din kasi bawal talaga siyempre walang permit, at kailangan ka mag-issue ng receipt, kaya magregister ka muna

2)
step 1 - register ka sa dti - punta ka http://www.dti.gov.ph/
register your business name, nandun na yung next step after registration

step 2 - punta ka city hall kung saang city mo itatayo yung business mo, for example, sa ayala ka magtatayo ng coffee shop, go to makati city hall and meron dung business registration process, nandun na lahat ng info sa city hall, maraming steps yan diyan

step 3 - sa BIR

3) pwede

4) buy entrepreneur magazine and magbasa-basa ka lang sa pinoyexchange:)

[mahadera25]

uy thanks ha! ayan pwede na ko first step.... tnx po.

[hack__you]

how come most of the online seller dont have business permits

because currently, there isnt any e-bir yet :naughty:

[wey_nard]

kahit ba computer shop kailangan pa iregister sa BIR?
we have dti, business and mayors permit. but BIR ata wala pa.

[jp_mac]

how come most of the online seller dont have business permits

because there are no solid e-commerce laws here in the philippines.technically, some custoners will still ask for receipts so it's better to register. mas mblis *** tumakbo for them kc no laws nga eh.

ang problem ***, for us who want to grow their business using technology...wlang laws to follow or protect our money and businesses.

haay.

[dinky207]

taxes can be legally avoided if you register as BMBE (Brgy Microbusiness Enterprise).

[tagome]

dinky 207...i just read sa ibang forums na once na member k ng BMBE eh 1K lang ang tax mo monthly?how true? san ako magpaparegister?magkano membership fee...pls enlighten me...thanks alot

[GOwin]

kapag BMBE registered ka na, WALA ka ng babayarang income tax. You are must still pay the business percentage tax (3%), plus any other taxes applicable to you.

Minsan masakit din sa ulo ang BMBE, kasi imagine kahit taga BIR eh hindi alam ang detalye nito at pagpipilitan ka pang pagbayarin.

Arm yourselves with knowledge. Read the latest bulletins and directives from DoF, BIR, DTI, etc. If you can print them, much better para meron kang pwedeng ipakita sa kanila.

[Drizzt]

Kaso if you cheat on your income tax ikaw din ang mahihirapan pag kukuha ka ng loans, etc. Nakaexperience na ba kayo nito? I got some problems with my bank loan kasi di daw kaya ng sweldo/other income ko. Weird. Kaya naman. Mali ko lang di ko nadeclare last year yung sa business ko kaya yari.