March 30, 2010

Securing A Barangay Clearance For An I-Café

After getting a name for an i-café business, securing a barangay clearance is the next step for it to be allowed to operate in the address specified in the DTI business name registration certificate. This is provided for in Section 152 (c) of the Local Government Code of the Philippines. Some cities and municipalities also require an i-café owner to get clearance to operate from homeowners association if the business will be located in a residential area.

The clearances are aimed to ensure the owner's compliance to some rules with regards to peace and order in the community where the business is located. The barangay and/or homeowners clearance is not only required in the opening of
an i-café business. The clearances must be secured every year as a requirement in its renewal of business permit with the local government unit.

The payment of the Community Tax Certificate (CTC) is a requirement before a barangay clearance is issued to a business owner. For the CTC, the i-café owner will have to pay one (PhP1.00) peso for every thousand peso he earned in the previous year on top of the basic tax of ten (PhP10.00) pesos. The collection of community tax is provided for under Article Six of the Local Government Code and shall be paid in the place of residence of the taxpayer or where his business is located.

The barangay clearance will also entail some money on the owner of an i-café. The amount to be paid before a barangay clearance is issued depend on the number of computer units in an i-café. Current feedback from i-café owners posting in different web forums shows charges for the clearance by a barangay could be as high as three hundred (PhP300.00) pesos per computer unit although many barangays still charge flat rates ranging from PhP300.00 to PhP1,000.00 per i-café.

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