30
Jan 2018
Starting the Year Right: Meeting Your Annual Compliance Requirements

The new year is a fantastic opportunity for us to pursue new ventures and improve upon the work that we did the previous year. For businesses, it also means dealing with the annual compliance requirements of various government agencies, from the local government to the Bureau of Internal Revenue (BIR).

The timelines and requirements vary from agency to agency, so it’s important to start early to avoid any potential issues down the road. This is especially the case with more complex requirements such as financial statements, distribution of forms, and annual reports.

It can be overwhelming to handle such a wide and varied range of requirements, which is why we prepared this guide for your convenience. We divided requirements into agencies, and included their respective deadlines to make sure you don’t miss any of them.

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Working with accountants that offer tax compliance services can make this daunting task easier for your business. Please contact us today to find out how our team of professionals can help.

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LOCAL GOVERNMENT UNITS (LGU)

Sole proprietorships, partnerships, and corporations are required to register at their Local Government Unit (LGU) and renew this registration annually.

WHAT: Annual Business Registration
WHERE: At your barangay for the Barangay Clearance and municipal office for the Mayor’s Permit
WHEN: Deadline is on or before January 20. For quarterly payments, deadline is on the 20th of every quarter (i.e. January 20, April 20, July 20, October 20)
FEES: Varies

BUREAU OF INTERNAL REVENUE (BIR)

Among the agencies in this article, the BIR has the most requirements, including registration, submission of books of accounts, and filing of income tax returns. These requirements vary too depending on your type of business and your books of accounts.

WHAT: Annual Business Registration
WHEN: On or before January 31
FEES: P500

Submission of Annual Information Return and Alphabetical List (alpha list)

  • BIR Form 1604CF – composed of the summary of withholding tax on compensations (BIR Form 1601C) that was filed and paid to the BIR during the taxable year, as well as the summary list of current and resigned employees during the same period. Deadline is on or before January 31.
  • BIR Form 1604E – composed of the summary of expanded withholding tax (BIR Form 1601E) that was filed and paid to the BIR during the taxable year, and the summary list of income payees for the same period. Deadline is on or before March 1.

Registration / Submission of Books of Accounts

  • For manual books, submission is when the pages of books have been used/exhausted per RMC 82-2008.
  • For loose-leaf books, deadline is on or before January 15.
  • For computerized books, these are usually submitted in CD-R, DVD-R, or other optical media format on or before January 30.

Distribution of Forms to Employees (BIR Form 2316) and Suppliers (BIR Form 2307)

  • BIR Form 2316 – Must be signed by employees by January 31, and submitted to the BIR by February 28.
  • BIR Form 2307 – Must be distributed 20 days after the taxable quarter.

Submission of Inventory List

Businesses must provide a list of their inventory and balance sheets rich in tangible assets. A copy of the list must be saved in a DVD-R that is labeled properly, notarized, and signed by an authorized representative. Deadline is on or before January 30.

Submission of List of Tenants

Required for businesses that lease or rent property for commercial purposes. The document must contain the layout of the leased property, certified true copy of the lease agreement per tenant, and the lessee information sheet as of December 31.

  • For the second semester (July to December period), deadline is on or before January 31.
  • For the first semester (January to June period), deadline is on or before July 31.

Submission of Semestral List of Regular Suppliers (SRS) of Goods and Services

To be submitted by Large Taxpayers using the prescribed format in compliance with RMC 14-2008:

  • For the second semester (July to December period), deadline is on or before January 31.
  • For the first semester (January to June period), deadline is on or before July 31.

Filing of Income Tax Returns or ITRs (BIR Form 1701 or 1702) and Audited Financial Statements

Deadline is on or before April 15.

SECURITIES AND EXCHANGE COMMISSION (SEC)

Aside from meeting compliance requirements of the BIR and LGUs, corporations must also submit these to the Security and Exchange Commission (SEC):

Filing of General Information Sheet (GIS)

  • For domestic corporations, deadline is 30 days after the annual stockholder’s meeting.
  • For foreign corporations, deadline is at the anniversary date of the issuance of the SEC license.

Filing of General Form Financial Statements (GFFS)

Corporations with gross sales/revenue of over P5 million for the year has to complete and submit this in a spreadsheet. Deadline is 30 days from the last day of submission of the Audited Financial Statement, which is May 15.

Submission of Audited Financial Statement (AFS)

Deadline varies depending on the last digit of the SEC registration or license number of the company:

  • 1 and 2 – April 16, 17, 18, 19, 20
  • 3 and 4 – April 23, 24, 25, 26, 27
  • 5 and 6 – April 30, May 2, 3, 4
  • 7 and 8 – May 7, 8, 9, 10, 11
  • 9 and 0 – May 14, 15, 16, 17, 18

PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA)

For Philippine Economic Zone Authority (PEZA)-registered businesses, make sure you meet these requirements:

  • Submission of Annual Report – Deadline is 90 days after the end of the accounting period.
  • Submission of Audited Financial Statement (AFS) – Deadline is 30 days after filing with the BIR.

Meeting Your Annual Compliance Requirements

Looking for a Tax Consultant?

Meeting all the requirements of LGUs, BIR, SEC, and PEZA are indeed daunting and can take up considerable resources. Alternatively, you can leave the hard work to our team of professional tax services consultants here at Beyond D Numbers. Contact us today to find out more how we can assist you.


Disclaimer: Information contained in this article may become outdated and is therefore meant as general guidance only. It is not intended as professional accounting or tax advice.

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