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
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Tax Compliance and Exemption – If a business did not operate, this affidavit may be required to avoid penalties or unnecessary tax obligations.
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Business Permit Renewal – Some local government units (LGUs) require this document when renewing permits for businesses that had temporary closures.
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Avoiding Late Filing Penalties – It serves as proof that the business had no transactions, which may prevent fines for non-submission of tax returns.
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Legal Documentation – It provides an official record that a business was inactive during a specific time, which can be useful in disputes or audits.
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Regulatory Compliance – Government agencies or regulatory bodies may require this affidavit to ensure businesses accurately report their operational status.
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
- That I am the owner of RAFJANZ COMPUTER SERVICES with business address at W. Trinidad St., Talisay, Batangas;
- That the said business was registered under the Department of Trade Industry at Lipa City on December 31, 2013 and valid until December 31, 2018;
- That on December 2013 the said business is not operating;
- That for this reason there was no income from the said business for the month;
- That I am executing this affidavit to attest to the truth of the foregoing statements to inform the proper authorities concerned, and for whatever legal purpose this may serve.