Top 3 Reasons to Register Your Business with the BIR
Bureau of Internal Revenue (BIR) Business Registration is usually not part of the priority for enterprises that have been in business for quite some time now. However, for those who are just getting started or those who’re operating their businesses in an informal manner, it’s a heavy task that should be done as soon as possible.
As of the moment, more than half of the Philippine government’s revenues originate from the BIR’s collections, and their revenue collection goal is P3.3 trillion for 2020. Big part of this fund will be used for government projects that will help the local economy grow. (Source: Business Mirror).
Reasons you should register your business with BIR?
Not yet convinced how registering your business with BIR can be a positive ROI for your business in the Philippines? Here’s a list of most important reasons.
You can Avoid Penalties and Being in Jail
Growing and running a business on a day-to-day basis is already demanding enough and there are certainly a lot of things that need to be prioritized. While you might think that filing for a BIR Certificate of Registration for your business is a waste of time, money and effort, doing it as early as possible can actually remove the burden on your shoulder in the long run.
BIR stated that the penalty will be “fine of not less than PHP 5,000 but not more than PHP 20,000, and imprisonment of not less than 6 months but not more than 2 years.” The definite fine will depend on where your business has been operating, namely PHP 20,000 if your business is in the city, PHP 10,000 if in a 1st class municipality, PHP 5,000 if in a 2nd class municipality, and PHP 2,000 if in a 3rd class municipality (source: bir.gov.ph).
In some cases, failure to Register with BIR can also lead to Business Closure which basically means that the government will eventually shut down all your operations until you have settled your shortfall.
More Opportunities on Growing Your Business
Obviously, other enterprises will work with enterprises they trust and more importantly those who have legitimate business registration certifications. It’s a no brainer, that having a Certification for Registration from BIR can build trust to your prospect and/or existing clients, investors and partners. Another benefit is that you can submit bids for government contracts, or you can also consider exporting your products and/or services to clients based overseas.
Contribute to the Country through your Taxes
As I mentioned earlier, businesses who pay their taxes in due course can actually help our economy thrive, give more opportunities for local communities and keep the train moving. These benefits are not only a positive ROI for your own business but, for the country and everyone of us who are doing business inside or outside the Philippines.
Schedule a Free Consultation with the Experts
Need business registration and tax compliance services for your business? You can outsource that to our team. Schedule a call today so we can give you our best recommendations, if you’re looking to start your business in the Philippines. Talk to us today for a free consultation!
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