Affidavit of Non-Operation for Business
Introduction
An Affidavit of Non-Operation is a legal document executed by a business owner or representative to formally declare that the business was not operational for a specific period. This sworn statement is typically required by government agencies, such as the Bureau of Internal Revenue (BIR) or local government offices, to justify why a business did not generate income, conduct transactions, or operate during a particular time frame.
By submitting this affidavit, the business owner affirms under oath that there were no business activities, which may exempt them from certain taxes, penalties, or compliance requirements for the specified period.
Uses of an Affidavit of Non-Operation
- Tax Compliance and Exemption – Required to avoid penalties or unnecessary tax obligations if a business did not operate.
- Business Permit Renewal – Some LGUs require this document when renewing permits for businesses that had temporary closures.
- Avoiding Late Filing Penalties – Serves as proof that the business had no transactions, preventing fines for non-submission of tax returns.
- Legal Documentation – Provides an official record that a business was inactive during a specific time, useful in disputes or audits.
- Regulatory Compliance – Required by agencies to ensure accurate reporting of business operations.
This document must be notarized to be legally valid, and false declarations may lead to legal consequences.
Sample of Affidavit of Non-Operation for Business
Republic of the Philippines )
Province of Batangas : S.S.
City of Tanauan )
AFFIDAVIT OF NON-OPERATION
I, RAFAEL ESTEBAN, of legal age, single, Filipino, and with residence address at J.P. Rizal St., Talisay, Batangas, after having been duly sworn in accordance with law, hereby depose and state:
- I am the owner of RAFJANZ COMPUTER SERVICES with business address at W. Trinidad St., Talisay, Batangas;
- The said business was registered under the Department of Trade and Industry at Lipa City on December 31, 2013, valid until December 31, 2018;
- That on December 2013, the said business was not operating;
- That for this reason, there was no income from the said business for the month;
- I am executing this affidavit to attest to the truth of the foregoing statements and to inform the proper authorities concerned for whatever legal purpose this may serve.
IN WITNESS WHEREOF, I have hereunto set my hand this ____ day of _______________, in Tanauan City, Batangas.
RAFAEL S. ESTEBAN
Affiant
SUBSCRIBED AND SWORN to before me this ____ day of _______________ in Tanauan City. Affiant exhibiting his Community Tax Certificate No. 08142405 issued on January 10, 2025, at Talisay, Batangas, to prove his identity.
Doc. No. ______
Page No. ______
Book No. _____
Series of 2025
Note: All information such as names, addresses, and other sensitive details are fictitious and for example purposes only.