Reportorial Requirements of a Regular Corporation in the Philippines

A regular corporation in the Philippines is subject to various reportorial requirements to ensure transparency, accountability, and compliance with the regulatory framework established by the Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR). Below are the primary reportorial requirements for a regular corporation:

1. Annual Financial Statements (AFS)

Submission Deadline: Within 120 calendar days after the end of the fiscal year.

Details: The financial statements must be audited by an independent certified public accountant (CPA). The AFS must include the balance sheet, income statement, statement of changes in equity, cash flow statement, and notes to the financial statements.

2. General Information Sheet (GIS)

Submission Deadline: Within 30 calendar days from the date of the annual stockholders' meeting.

Details: The GIS provides detailed information about the corporation, including the list of officers, directors, stockholders, and their respective holdings.

3. Annual Income Tax Return (BIR Form 1702)

Submission Deadline: On or before the 15th day of the fourth month following the close of the taxable year.

Details: The annual income tax return must include the audited financial statements and other supporting documents as required by the BIR.

4. Quarterly Income Tax Return (BIR Form 1702Q)

Submission Deadline: Within 60 days after the end of each quarter.

Details: The quarterly income tax return provides a summary of the corporation’s taxable income and the corresponding tax due for the quarter.

5. Monthly and Quarterly VAT Returns (if applicable)

BIR Form 2550M: Monthly VAT declaration.

Submission Deadline: On or before the 20th day of the following month.

BIR Form 2550Q: Quarterly VAT return.

Submission Deadline: On or before the 25th day of the month following the close of the taxable quarter.

6. Monthly Percentage Tax Returns (BIR Form 2551M) (if applicable)

Submission Deadline: On or before the 20th day of the month following the end of the taxable month.

7. Withholding Tax Returns

Monthly Remittance Return of Income Taxes Withheld on Compensation (BIR Form 1601-C)

Submission Deadline: On or before the 10th day of the following month.

Quarterly Remittance Return of Creditable Income Taxes Withheld (Expanded) (BIR Form 1601-EQ)

Submission Deadline: On or before the last day of the month following the close of the taxable quarter.

Annual Information Return of Income Taxes Withheld on Compensation (BIR Form 1604-CF)

Submission Deadline: On or before January 31 of the following year.

Annual Information Return of Creditable Income Taxes Withheld (Expanded) (BIR Form 1604-E)

Submission Deadline: On or before March 1 of the following year.

8. Other SEC Requirements

Sworn Statement of Assets and Liabilities

Submission Deadline: As required by the SEC, typically upon filing of financial statements.

Affidavit of Non-Operation: If the corporation has no operations, an affidavit of non-operation must be submitted.

9. Business Permits and Licenses

Local Business Permits: Annual renewal of business permits from the local government unit where the corporation operates.

Barangay Clearance: Renewal of the barangay clearance annually.

10. Books of Accounts

Registration and Maintenance: The corporation must register and maintain its books of accounts with the BIR. These books must accurately record all financial transactions and be available for inspection upon request.

Compliance Tips for Regular Corporations

Timely Filing: Ensure all required documents are filed within the prescribed deadlines to avoid penalties and sanctions.

Accurate Records: Maintain accurate and updated records of all financial transactions, corporate minutes, and other relevant documents.

Professional Assistance: Consider hiring professional accountants and legal advisors to ensure compliance with all regulatory requirements.

Regular Review: Periodically review compliance requirements and update internal processes to adapt to any changes in regulations.

Compliance with reportorial requirements is essential for the smooth operation and legal standing of a regular corporation in the Philippines. By adhering to these requirements, corporations not only ensure regulatory compliance but also foster transparency, accountability, and trust with stakeholders, including investors, employees, and the government. Regular corporations should stay vigilant and proactive in fulfilling their obligations to maintain their good standing and support their long-term business objectives.