Business Income And Receipts Tax (BIRT)
What is it?
The Business Income and Receipts Tax or BIRT is the renamed business privilege tax. It’s a two-part tax on revenue based on a business or individual’s gross receipts and net income.
Who has to pay it?
Every individual, partnership, association, limited liability company (LLC) and corporation engaged in a business, profession, or other activity for profit within the City of Philadelphia must pay this tax. You must file, even if you did not earn a profit.
How much is the tax?
Current BIRT rates are 1.415% per $1,000 on gross receipts, and 6.35% on taxable net income.
When is the tax due?
What happens if I don’t pay or don’t pay on time?
Late payments are subject to interest and penalty charges. There are no extensions for tax payments, but you can apply for more time to file your return if needed.
Your Commercial Activity License (CAL), the license all for-profit businesses need to conduct business within Philadelphia, can be suspended or revoked if you haven’t paid your taxes. If you don’t pay on time, you may have to suspend business operations until you do pay.
Do you have any tips or suggestions?
The BIRT can be allocated if some of the business is done out of the city. The BIRT also allows for a statutory exemption of up to $100,000 of gross receipts.
Filing the BIRT in the first year requires payment for the current year and following year.
Where can I get more information if I need it?
For more information about BIRT, visit the business, income, and receipts page on the City of Philadelphia site.