Affidavit of Non-Operation for Single Proprietorship
Affidavit of Non-Operation is a legal document used by business owners to declare that their business has not operated or earned any income within a specific taxable year. This affidavit is commonly required by the Bureau of Internal Revenue (BIR), the Department of Trade and Industry (DTI), or local government offices when renewing business permits or filing annual returns.
Purpose of the Affidavit
The main purpose of the affidavit is to formally inform the government that your single proprietorship had no transactions, sales, or operations during a certain period. This helps you avoid penalties or unnecessary tax filings while maintaining your business registration.
When Do You Need It?
- When your business temporarily stopped operations for a year or more.
- When renewing your business permit but no income was generated.
- When the BIR requires proof of non-operation for tax compliance.
Requirements Before Preparing the Affidavit
- Valid government-issued ID of the business owner.
- Business registration certificate (DTI or BIR).
- Tax Identification Number (TIN).
- Notary public acknowledgment after signing the affidavit.
Sample Affidavit of Non-Operation
REPUBLIC OF THE PHILIPPINES )
CITY/MUNICIPALITY OF __________ ) S.S.
AFFIDAVIT OF NON-OPERATION
I, [Your Full Name], of legal age, Filipino, single/married, with residence at [Your Complete Address], after having been duly sworn in accordance with law, hereby depose and state:
1. That I am the owner and operator of a single proprietorship business registered under the name [Business Name], with Business Registration No. [DTI or BIR Number];
2. That said business has not operated, had no sales, and has not earned any income for the taxable year [Year];
3. That this affidavit is being executed to attest to the truth of the foregoing statements and to comply with the requirements of the Bureau of Internal Revenue (BIR) and/or other government agencies.
IN WITNESS WHEREOF, I have hereunto set my hand this ___ day of __________, 20___ at __________, Philippines.
_________________________
(Signature over printed name)
Affiant
SUBSCRIBED AND SWORN to before me this ___ day of __________, 20___ at __________, Philippines.
Affiant exhibited to me his/her valid ID No. __________ issued on __________ at __________.
_________________________
NOTARY PUBLIC
Reminders
- The affidavit must be notarized by a licensed notary public.
- Use your real and accurate business details.
- Keep a copy for submission to BIR or City Hall when renewing your permit.
This Affidavit of Non-Operation serves as an official declaration that your business had no income or activities during a specific year, ensuring compliance with tax and local business regulations.