You need a Commercial Activity License (CAL) to do business in Philadelphia legally.
Good news: Your Commercial Activity License doesn’t expire. There’s no renewal fee either. But the City can revoke your license if you do not meet your tax filing and payment requirements. Keeping your tax account up to date helps keep your business running smoothly. Here are three ways you can do that:
1. File your tax returns
Depending on your activity, your business may have multiple tax responsibilities, including filing returns for the following taxes:
- Business Income and Receipts Tax (BIRT), the City’s primary business tax
- Net Profits Tax (NPT), if applicable
- Wage Tax, if you have employees
Other taxes may apply depending on your business activity. These may include Use and Occupancy Tax, Hotel Tax, or the Liquor Tax. Visit phila.gov/revenue to learn more about the City’s various taxes.
2. Pay what you owe
Filing a tax return is one part of staying compliant. You also need to pay any taxes you may owe—it is important to pay taxes by their due dates.
Make sure you know which taxes apply to your business and when your returns and payments are due. For example, BIRT and NPT returns are generally due by April 15 for the previous year’s business activity. Other taxes may have monthly or other filing and payment schedules. Find all City taxes, rates, and more on our business tax web page.
If you cannot pay your bill in full, do not ignore it. We have payment plans that can help you keep your account current. Review our payment agreement options and set up a plan to pay your balance in affordable installments.
The City can revoke your business license if you fail to comply with these filing and payment requirements.
3. Don’t ignore Revenue notices
The Department of Revenue may contact you if you have unmet tax obligations, such as unfiled returns or unpaid taxes. In some cases, we’ll send you a letter when you’ve got a credit on your account or to ask for more information about tax returns. If you get a notice, read it carefully, follow the instructions by the deadline.
Before revoking your license, the Department sends you two warning notices—giving you sufficient time between notices. The notices explain what you owe, what you need to do to avoid revocation, and how to contact your caseworker. Make sure to work with your case manager to find out what you need to do to get back into compliance. You could lose your license if you ignore these notices.
Keep in mind: Your business license doesn’t need to be renewed, but it can be revoked if you don’t stay current with your Philadelphia tax obligations. File and pay your taxes, read your notices, and ask for help when you need it.
