Nearly 2 years into the pandemic and 2021 is coming to an end.

We know you are expecting growth in your operations in year 2022 but we at THRIVE Global CFO wants to support business owners like you to be well informed on various compliance requirements.

For accountants, taxpayers and businesses, new year also means start of the annual compliance.

We have to submit to various government agencies in the Philippines, especially if you are a corporation, with the BIR (Bureau of Internal Revenue), SEC (Securities and Exchange Commission) and LGUs (Local Government Units) such as Municipal and Barangay.

This article aims to provide you with a list of some of the annual year-end compliance required to be submitted by registered businesses. Some may or may not apply to you, but rest assured that you can always reach out to THRIVE team for any questions you have. If you are our valued client, you may expect that those applicable to you will be discussed during the Finance Huddles and we will help you comply, as needed.

We hope it can guide and inform you in your annual compliance to avoid payment of penalties for non-compliance. Feel free to forward this article to your network or friends who are also doing business.

REGISTRATION RENEWALS

Annually, all registered businesses and taxpayers engaged in business, except those exempt, are required to renew registrations to the following government agencies:

• Local Government Unit (LGU) – Deadline of Annual Payment of Business Registrations Renewal is on or before January 20. However, there’s an option to pay the renewal registrations quarterly which is due 20 days after the close of the quarter (April 20, July 20 and October 20).
• Bureau of Internal Revenue (BIR) – Annual registration fee amounting to P500.00, on the other hand, is required to be filed and paid to the BIR on or before January 31.

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RENEWALS OF BOOKS OF ACCOUNTS

Annual compliance depends on the type of books of accounts registered with the Bureau of Internal Revenue (BIR), as follows:

• Manual Books of Accounts – Per RMC 82-2008, manual books of accounts will only be renewed or re-stamped if already fully exhausted or used. In addition, manual books of accounts are not required to be submitted to the BIR annually. However, it may be required to be presented upon audit and/or tax mapping.
• Loose-leaf Books of Accounts – For BIR approved loose-leaf books, taxpayer must submit to the BIR bounded books of account for the taxable year on or before January 15.
• Computerized Books of Accounts – For BIR approved computerized books, taxpayer must submit to the BIR in CD-R, DVD-R or other optical media for the taxable year on or before January 30.

DISTRIBUTION AND SUBMISSION OF BIR FORM 2316

• If you have employees, BIR Form 2316 is a return that details an employee’s income earned, with the corresponding tax withheld and remitted to the BIR, by the employer, during the taxable year. This is due for distribution and signing of the current and existing employee on or before January 31.
• In addition, BIR also requires the employer to submit to the BIR a signed copies of the said BIR Form 2316 on or before February 28.

Knowing the compliance requirements will also help you plan out the manpower complement you need to comply on a timely and accurate basis. You may also consider outsourcing this part to a trusted operational finance team.

ALPHALISTS SUBMISSION

• BIR Form 1604CF – Annual Information Return of Income Taxes Withheld on Compensation – This summary of withholding tax on compensations (BIR Form 1601C) paid and filed to the BIR during the taxable year, and the summary list (alphalist) of employees, existing and resigned, during the taxable year. This is due for submission to BIR on or before January 31.
• BIR Form 1604E – Annual Information Return of Creditable Income Taxes Withheld (Expanded)/Income Payments Exempt from Withholding Tax – This form consist of the summary of withholding tax – expanded (BIR Form 1601E) paid and filed to the BIR during the taxable year, and the summary list (alphalist) of income payees during the year. This is due for submission to BIR on or before March 1.

INVENTORY LISTS SUBMISSION

Per Revenue Memorandum Circular 57-2015, inventory list and other tangible asset-rich balance sheets, often with at least half of their total assets in working capital assets, such as accounts receivable, are required to be submitted to the BIR, in DVD-R properly labeled and with notarized certification signed by authorized representative, on or before January 30.

SUMMARY LIST OF TENANTS SUBMISSION

Per Revenue Regulation 12-2011, this applies to taxpayers engaged in leasing or renting of property for commercial activities, which are required by the BIR to submit the following a) layout of the leased property b) certified true copy of lease agreement per tenant c) lessee information sheet as of December 31. This is due for submission to BIR on or before January 31 (for the 2nd semester: July to December) and July 31 (for the 1st semester: Jan to June).

>> Watch this mini-course on the basics of business registration for freelancers and professionals.

SUMMARY LIST OF REGULAR SUPPLIERS SUBMISSION

Per Revenue Regulations No 14-2008, large taxpayers (Top 5,000 individual/Top 20,000 Private Corporations) as determined by the Commissioner of the Internal Revenue , shall submit on semestral basis a summary list of its regular suppliers of goods and/or services to the Large Taxpayers Assistance Division/Large Taxpayer District Office on or before January 31 (for the 2nd semester: July to December) and July 31 (for the 1st semester: Jan to June).

ANNUAL INCOME TAX RETURNS AND AUDITED FINANCIAL STATEMENTS

In general, except those exempted, companies or taxpayers engaged in business are required to submit to BIR, and Securities and Exchange Commission (SEC) (for corporations only), a copy of their Annual Income Tax Return (BIR Form 1701 or 1702) and Audited Financial Statements on or before April 15.

Need help in setting up a corporation in the Philippines?

GENERAL FORM FINANCIAL STATEMENTS (GFFS) FILING

This is a requirement of the SEC for corporations only with gross sales or revenue of more than P5,000,000.00 during the year. It’s an excel form that needs to be filled out and submitted to SEC in electronic format 30 days from the last day of submission of Audited Financial Statement, which is May 15.

GENERAL INFORMATION SHEET (GIS) FILING

This is again a requirement of the SEC for stock corporations only. It must be signed by the corporation secretary and must be submitted thirty (30) days after the actual annual stockholder’s meeting (For Domestic Corporation) or anniversary date of the issuance of the SEC license (For Foreign Corporation).

Watch this video to learn more if OPC structure is the right fit for you.

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Disclaimer: This resource is intended for general information purposes only. Nothing in this article constitutes or intends to constitute financial, accounting, regulatory or legal advice and must not be used as a substitute for professional advice. You should contact consultants before making decisions related to business setup and registration.

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Exciting news!

Now onto some exciting news! 🎉 We are thrilled to share to you the following updates as we grow with you and develop services that will be helpful for business owners like you.

We have rebranded from DoubleRule.PH to THRIVE Global CFO! While our corporate registration is still on process, you may find that we shifted our socials, website and other materials to the THRIVE Global CFO brand. What this means for you is that we are committed to growing with businesses like you!

We have grown into an 8-man team now as of this writing! Our success is due, in part, to your guidance, feedback and advice. It means so much to know you have faith in me and my team. We’ve learned so much working with you.

We are launching an Entrepreneurs’ Community soon! EC is where you can meet other likeminded business owners for networking, technology, collaborations and potential projects. We believe in the importance of community in the growth of many businesses and we aim to give you the safe platform to do just that. As an active client, you will gain exclusive perks and access to this platform.

We are launching Education at THRIVE Global CFO, the business university for entrepreneurs like you. As an active client, you will gain exclusive perks and access to this platform. We hope to help you grow as a CEO by building your financial knowledge too!

Find out more about how THRIVE supports PH Businesses

THRIVE empowers you to start your business in the Philippines through our end-to-end business setup and registration services. We’ll connect you with experienced consultants who can help answer your questions about doing business in the Philippines.

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