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HOW TO APPLY FOR NEW/RENEWAL OF BUSINESS PERMIT
Description: Application for New BusinessAs per Section 5 of the Revised Omnibus Tax Ordinance of the City of Cebu:
“..any person desiring to engage in any business, trade, occupation or calling shall first submit an application on a form prescribed for the purpose, to the City Mayor, for the corresponding permit.
…the business permit is to ensure the payment of the taxes and related fees to the city, as well as to regulate business activities for security, sanitary, safety and propriety purposes."
Renewal of Business Permit
“..Application for renewal of license or permit shall be filed or registered on or before January 20 of each year (Sec. 5, Revised Omnibus Tax Ordinance of the City of Cebu).”
The business permit is renewed, without regards to the date of issue, from January 1-20 of every year. This is also in consonance with Section 8 of the Revised Omnibus Tax Ordinance of the City of Cebu which states that:
“All business taxes, fees, or charges imposed under this Ordinance shall accrue on the first day of January of each calendar year as regards persons then liable. Unless otherwise specified, all business taxes are payable at the option of the taxpayer, either, annually, on or before the twentieth of January, or quarterly, on or before the twentieth of January, April, July and October.”
Application for the permit beyond the twentieth of January of the current year will be subject to the payment of penalties, interests and surcharges on top of the business taxes and fees.
Client/s: Businessmen of Cebu City
Contact Person/s: Zosima Sebes - Acting Division Chief255-8755
Location: 2nd Flr., Exec. Bldg. / Business Taxes & Fees Division, Cebu City Hall
Availability: Monday-Friday / 8:00 AM - 5:00 PMRenewal: Annually, from January 1 – 20. Those renewing beyond this period are subject to additional surcharges and/or penalties.
Duration of the Service: Everyday except Saturdays, Sundays and Holidays
Requirement/s: For Application of New Business:
I. For the Issuance of Tax Assessment:
1. Duly filled-up and notarized application form with sketch at the back of the form (must be signed by the owner if single proprietor and by the authorized representative fi Corporation/Partnership/Cooperative)
2. Photocopy of one valid ID of the signatory
3. Personal proof of billing of owner (if single proprietor)
4. Picture of the business location that includes the nearby establishments
5. For Single Proprietorship - Certificate of Registration from the Department of Trade and Industry (DTI)
6. For Partnership or Corporation - Certificate of Registration, Articles of Incorporation & By-Laws from the Securities and Exchange Commission (SEC) and the Board Resolution of Authorized Representative
7. For Cooperative - Certificate of Registration, Articles and By-Laws of Cooperative from Cooperative Development Authority (CDA) and the Board Resolution of Authorized Representative
II. For the Issuance of Business Tax Payment Certificate (BTPC):
1. Assessment Sheet
2. Original Copy of Official Receipt of Payment for Business taxes, fees and other charges
3. Original copy of the Community Tax Certificate for the current year
III. For Verification of Mandatory Requirements and Issuance of Mayor's Business Permit (must be complied within 60 days from the date of the issuance of the BTPC) - Present original and photocopy of the following documents:
1. All of the documents enumerated under I and II above
2. Barangay Clearance where the business location belongs with official receipt of payment
3. SSS, PhilHealth, and PAG-IBIG Clearance
4. Sanitary Permit together with the List of Employees duly certified by the City Health Officer
5. Fire Safety Inspection Certificate
6. Real Property Tax Clearance or Certificate of No Delinquency of the immediately preceding year, if the property is owned by the applicant or Contract of Lease if renting the building and/or land (submit 2 photocopies)
7. Tax Identification Number (TIN), BIR issued Certificate of Registration (COR) and Proof of Payment of BIR Annual Registration of Php 500.00 per establishment
8. Community Tax Certificates of Employees
9. Occupational Taxes and Professional Taxes of Employees
10. Official Receipts of the Registration of Weights and Measures if engaging with weights and measures
11. Requirements from National and/or Local Government as the case may be (Additional Requirements based from the Joint Inspection Team remarks)
For Renewal of Business Permit:
I. For Issuance of Assessment for Payments:
1. Duly Filled-out Application Form
2. Preceding year's ledger print-out
3. Preceding year's Income Tax Return with Financial Statements duly received by BIR (if available)
4. Sales Journal and VAT/Percentage Tax Returns (1st, 2nd, 3rd quarters for the months of October and November, whichever is applicable if available)
II. For Issuance of Temporary Mayor’s Business Permits:
1. Assessment Sheet
2. Original Copy of Official Receipts of payment of business taxes, fees and charges
3. Original Copy of Community Tax Certificate of the current year
III. For Verification of Requirements and Issuance of Mayor's Business Permit (must be complied within 30 days from the Issuance of the Temporary Mayor's Business Permit) - Submit Original and Photocopy of the following documents:
1. All of the documents enumerated under I and II above
2. Barangay Clearance where the business location belongs with official receipt of payment
3. SSS, PhilHealth, and PAG-IBIG Clearance
4. Sanitary Permit together with the List of Employees duly certified by the City Health Officer
5. Fire Safety Inspection Payment Receipt
6. Real Property Tax clearance or Certificate of No Delinquency of the immediately preceding year, if the property is owned by the applicant or Contract of Lease if renting the building and/or land (submit 2 photocopies)
7. BIR issued Certified of Registration (COR) and Proof of Payment of BIR Annual Registration of Php 500.00 per establishment
8. Community Tax Certificates of Employees
9. Occupational Taxes and Professional Taxes of Employees
10. Official Receipts of the Registration of Weights and Measures if engaging with weights and measures
11. Requirements from the National and/or Local Government as the case maybe (as asked by the Business Permit Division Chief)
Fee/s:For Application of New Business:
Business Taxes - 0.0005 x Capital Investment
Permit Fee - 0.002 x Capital Investment
City Health Inspection Fee - Based on Capital Investment (max. Php 200)
Zoning Fee - Based on Capital Investment (max. Php 550)
Food & Drug Fee (in case the business is food related) - Based on Capital Investment (max Php 150)
Fire Department Fee - 10% of Total Regulatory Fees
Garbage Fee - Based on the Nature and Area of the Business (Ordinance # 2018: Omnibus Tax Code-Imposition of Garbage Fee)
Community Tax Certificate - Php 80 (2% interest per month for late cedulas for single proprietorship)
Corporate Cedula - Php 500 (Basic Only)
For Renewal of Business Permit:
- Application for renewal filed after January 20 shall subject the applicant to a penalty of 1/20th of 1% of the capital investment (Sec. 5, Revised Omnibus Tax Ordinance of the City of Cebu).
- Further, except as otherwise provided, payments of taxes, fees or charges made after the 20th of January shall be subject to surcharges of 25% plus interest at the rate not exceeding 2% per month of the unpaid taxes, fees or charges including surcharges...(Sec. 20, Revised Omnibus Tax Ordinance of the City of Cebu).
Procedure in Availing the Service (NEW):| 1. Ask and fill up the Application Form for new application of business permit. | Hands out the application form | Violeta Arranchado Joselito Tomaquin Ma. Charlene Sabanal |
Less than 30 seconds per application |
| 2. Submit the duly notarized filled up application form and other supporting doucments as listed at the back portion of the form (Part I) to the evaluator. | Evaluates the application based on the data in the application, supporting documents and interview. | Mary Mae Jao Ma. Charlene Sabanal |
3-5 min. per application |
| 3. Submit the evaluated application to the encoder for the printout of assessment. | Encodes and prints out assessment sheet. | Hernane Alguno Janice Aleonar Ma. Charlene Sabanal |
1-3 min. per application |
| 4. Pay the business taxes and fees due for new registration of your business to the cashier and get a Resident Certificate (cedula) for the new business. | Receives payments and issues Official Receipt of Business Taxes and Fees paid and Resident Certificate (cedula). | Ma. Charlene Sabanal and/or other assigned collector of Business Taxes and Resident Certificate (cedula) | 3-5 min. per application |
| 5. Proceed to the encoder for the printout of Business Tax Payment Certificate (BTPC) and for signing. | Releases the Business Tax Payment Certificate and signs. | Hernane Alguno Janice Aleonar Josephine Escoton Ma. Charlene Sabanal Ana Marie Durano Zosima Sebes |
1-2 min. per application |
| 6. Submit signed Business Tax Payment Certificate and other attachments as stated in the back of the application form (Part I) for retrieval of copy for inspection. | Retrieves a copy for inspection and instructs client to comply other requirements while waiting for the inspection. | Violeta Arranchado Ma. Charlene Sabanal |
3-5 min. per application |
| 7. While waiting for the Joint Inspection (JIT), comply with the other regulatory/mandatory requirements as listed at the back of the application form (Part III). After inspection, the JIT will leave an inspection report for you to comply. The business owner/applicant is given 60 working days to comply the requirements asked by the inspectors and as listed at the back of the application form. | |||
| 8. Submit the regulatory requirements to the Verifier. | Checks the completeness of the requirements. | Josephine Escoton | Less than a minute per application |
| 9. Submit the checked requirements to the Encoder for the printing of the Mayor's Permit. | Pints the Mayor's Business Permit. | Arthur Echavez | Less than a minute per application |
| 10. Proceed to the assigned signatory for the singing and releasing of the Mayor's Business Permit. | Signs and releases the Mayor's Business Permit. | Zosima Sebes Juanita Monina Paires Jane Abarquez Susan Tinga Nancy Ledesma |
5-10 min. per application |
NOTE: New Application with an Initial Capital Investment below Php 500,000.00 will be entertained at DTI-NERBAC, LapuLapu St., Cebu City. Steps 1-5 will be done there. Just look for Ms. Charlene Sabanal.
New Application with an Initial Capital Investment above Php 500,000.00 will be entertained at Cebu City Hall, 2nd Floor, Business Taxes and Fees Division.
Procedure in Availing the Service (RENEWAL):| 1. Fill up Application Form for renewal of business permit (You can ask for copies of the Application Form at the designated area). | Hands out the application form according to the number of business establishments to be renewed. | Violeta Arranchado Joselito Tomaquin and/or other assigned personnel during peak time of renewal |
Less than 30 per application |
| 2. Submit the filled up application form to the encoder for the printing of ledger. | Prints out the ledger of the business establishment. | Hernane Alguno Janice Aleonar Josephine Escoton and/other assigned encoders during peak time of renewal |
Less thank 1 min. per application |
| 3. Ask for a priority number depending on the number of applications you will file (fast or heavy lanes) - applicable during January 2-20 peak time of renewal. | Gives you a priority number dpeending on your applications. | Priority Number In-charge (varies every year) | Less than 30 seconds per application |
| 4. When your number is called, give the filled up Application Form, together with the ledger and other requirements stated at the back of the form (Part I), to the assigned evaluator for the assessment fo the business taxes and related changes. | Assesses the Gross Annual Income of the business establishment, nature of the business and the like. | Juanita Monina Paires Mary Mae Jao and/or other assigned evaluators during peak time of renewal |
5 min. per application |
| 5. Proceed to the encoder for the pirntout of the assessment. | Releases the approved assessment of business taxes and fees. | Hernane Alguno Janice Aleonar Josephine Escoton and/or other encoders during peak time of renewal |
Less than a minute per application |
| 6. Pay the business taxes, fees & other charges and cedula to the assigned collectors. | Issues the Official Receipt and Cedula for the payments made. | Designated collector for business taxes and cedula | 5-10 min. per application |
| 7. Claim your Temporary Business Permit. | Releases the Temporary Business Permit after verification of supporting documents. | Designated encoders during peak time of renewal | 5-10 min. per application |
| 8. Comply with the regulatory requirements listed at the back of the application form (Part III). The business owner/applicant is given 30 working days to comply and submit the regulatory/mandatory requirements. | |||
| 9. Submit the regulatory/mandatory requirements to the verifier. | Checks the completeness of the requirements. | Josephine Escoton and/or other assigned encoders during peak time of renewal |
Less than a minuter per application |
| 10. Submit the checked requirements to the encoder for printing of the Mayor's Permit | Prints the Final Mayor's Business Permit | Arthur Echavez and/or other encoders during peak time of renewal |
Less than a minute per application |
| 11. Proceed to the assigned signatory for the signing and releasing of the Mayor's Business Permit. | Signs and releases the Mayor's Business Permit. | Zosima Sebes Juanita Monina Paires Joselito Tomaquin Tessie Camarillo Jane Abarquez Susan Tinga Nancy Ledesma |
5-10 min. per application |
This information appeared first on the 2009 Version of the Cebu City Citizen's Guidebook published by the Cebu City Government through the efforts of the Mayor's Management Team.
