Almost every, if not all, entrepreneurs are aware that they need to renew their mayor’s permit (LGU business permit) within the first three weeks of January. But there is also another equally important registration renewal that needs to be done before January 31st.
All registered taxpayers, except those earning purely compensation income, are required to pay the annual registration fee with BIR. The payment amounting to Php 500.00 needs to be done before the end of January to avoid getting slapped with interest, penalties and compromise fees.
If you find yourself unavailable to go through this requirement, check this out and see how we may be able to help. If you have time to do this yourself, we crafted a detailed guide in completing this requirement in four easy steps:
(1). If you are not registered with eFPS, ensure that you have the latest eBIRFORM version. As of today, you should be working on version 7.2.1. If you have the older version, go to this link and download the latest one.
(2) Open Bir Form 0605. You should be looking at a form like this one. We will now run you through what you should put in the respective sections:
Filling out BIR Form 0605: Part I
- Select the applicable year for Item 1, Calendar Year or Fiscal year. If your financial year starts in January, choose Calendar Year. Otherwise, choose Fiscal year.
- For Item 2, Year Ended should be December 2019 for calendar year. For Fiscal Year, indicate the applicable Month and Year corresponding to your last day of operations.
- Skip Item 3 as this is not applicable for this particular tax return.
- For Item 4, the Due Date should be 01/31/2019.
- Indicate the number of sheets for the accompanying document, if any, for Item 5.
- For Item 6, ATC should be MC180 for Registration Fee for both VAT/Non-VAT taxpayers.
- The applicable Return Period for Calendar year is 12/31/2019.
- The Tax Type for Item 8 should be RF since we are paying for Registration Fee.
- Fill-out the necessary details for Items 10,12, 13, 14, 15, and 16.
- Moving on to Taxpayer Classification on Item 11, select I for Individual Taxpayer or N for Non-individual Taxpayer.
- For Item 17 under Voluntary Payment, select Others and specify “REGISTRATION FEE FOR 2019”. Select Full Payment for Type of Payment on Item 18.
Filling out BIR Form 0605: Part II
- In Item 19 for Basic Tax/Deposit/Advance Payment, enter Php 500.00 and your Item 21 for Total Amount Payable will automatically be Php 500.00. Only fill-out Items 20A to 20C if applicable.
(3) Review your work. Once done, submit the same way you submit a tax return using eBIRFORM or eFPS.
(4) Payment. If you are enrolled in eFPS, proceed to pay the same way as any other taxes you file. If you are registered to file via eBIRForms, print a copy of the tax return and the email confirmation in triplicate. Pay the fee through one of the accredited banks of your respective RDO, or by credit card via DBP. Ensure that you keep a copy of the payment confirmation for future reference and proof of payment.
And then you’re set. You do not need to have to do this again until next year! If you have no time to go through the requirement yourself, we can take care of this for you for a small convenience fee. Secure this deal by asking for the quote here.
Remember, failure to renew your annual registration fee would trigger a surcharge of 25%, interest penalty of 20% per annum, and a compromise penalty of Php 1,000. We recommend that you set aside some time to get this done or commission a third party to help process it for you before the deadline to avoid the necessary fees.
If you need assistance with this, check out our deal on processing annual registration fee renewals here.