Reports that are accepted through the Online Submission Tool (OST) are as follows:
a. Annual Audited Financial Statements (AAFS)
b. General Information Sheet (GIS)
c. Sworn Statement for Foundation SSF)
d. General Form for Financial Statements (GFFS)
e. Special Form for Financial Statements (SFFS), including IHFS, PHFS, BDFS, LCFS, LCIF, FCIF
f. Affidavit of Non-Operation (ANO), to be filed together with the GIS/AFS
g. Affidavit of Non-Holding of Annual Meeting (ANHAM), to be filed together with the GIS

Covered corporations are prescribed to enroll through the Online Submission Tool (OST) under the URL of https://cifss-ost.sec.gov.ph/. Upon enrollment, filers need to upload a board resolution or a secretary certificate designating a person to access the portal in behalf of the Company before it can successfully proceed to the submission of online application. You can directly download the prescribed template of the Board Resolution and Secretary Certificate for the authority of the OST filer from the login page of the OST. The enrollment also requires the 2020 GIS and/or its MC 28-2020 compliance to be uploaded with a note that the indicated email address and contact details should be the same email address and contact number to be used for the OST enrollment.

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The respective revised GIS for 2019 for each type of corporation (Domestic corporation [stock/non-stock], Foreign Corporation, Branch Offices, Representative Offices, etc.) can be downloaded directly from the Securities and Exchange Commission website.

Referring to the previous update of GIS under SEC Memorandum Circular 16 series of 2016, the Commission En Banc approved the following revisions in the GIS and Notification Update Form (NUF):

1. In the GIS, the Tax Identification Numbers (TIN) of the Board of Directors/Trustees, Officers and Stockholders of Domestic Corporations and Resident Agent and Officers in the Philippines of foreign corporations shall be indicated in a separate sheet designated as the TIN page;
2. In the NUF for foreign corporations, the TIN of Officers shall be accomplished in a separate sheet designated as the TIN page;
3. The residential addresses of the Directors/Trustees, officers and stockholders on pages 3 and 4 of the GIS for stock and non-stock corporations and Resident Agent and officers in the NUF for foreign corporations shall likewise be indicated in the TIN page; and
4. The Corporate Secretary’s Certificate of the GIS for Stock and Non-Stock corporations shall be stated in accordance with the prescribed format under the SEC MC 16 series of 2016.

NOW, under SEC Memorandum Circular (MC) 17 series of 2018, disclosure of Beneficial Ownership of a domestic stock and non-stock corporations is mandated. The following information of the beneficial owner must be indicated in the revised GIS v.2018:

1. Complete name which shall include the surname, given name, middle name, name extension (i.e.: Jr.; Sr.; III)
2. Specific residential address
3. Nationality
4. Tax Identification Number
5. Percentage of Ownership, if applicable

A beneficial owner refers to any natural person who:

1. Ultimately owns or controls the corporation; or
2. Has ultimate effective control over the corporation

Ultimate Effective Control refers to any situation in which ownership/control is exercised through actual or chain of ownership or by means other than direct control. This may be achieved through, but not limited to, any of the following situations:

1. Direct or indirect ownership of at least 25% of any category of voting shares or capital of a legal person, arrangement, understanding, relationship or otherwise has or shares voting power, which includes the power to vote, or to direct the voting of, such security; and/or investment returns or power, which includes the power to dispose or, or to direct, the disposition of such security; Provided, that a person shall be deemed to have an indirect beneficial ownership interest in any security which are qualified under the memo circular.
2. Ability to elect a majority of the board of directors, or any similar body, of a legal person or arrangement; or
3. any situation in which
   • a person has the ability in fact to exert a dominant influence over the management or policies of a legal person or arrangement or;
   • a majority of the members of the board of directors of such a legal person or arrangement, or any equivalent body, are accustomed or under an obligation, whether formal or informal, to act in accordance with a given person’s directions, instructions or wishes in conducting the affairs of the legal person or arrangement.

To download the Revised GIS for 2019 also known as the “GIS Stock(non-stock) v.2018”, please follow this link http://www.sec.gov.ph/reportorial-requirements/corporations-with-primary-licenses-2/

National Internal Revenue Code (NIRC) Section 236(B) Annual Registration Fee. — An annual registration fee in the amount of Five Hundred pesos (Php 500) for every separate or distinct establishment or place of business, including facility types where sales transactions occur, shall be paid upon registration and every year thereafter on or before the last day of January: Provided, however, That cooperatives, individuals earning purely compensation income, whether locally or abroad, and overseas workers are not liable to the registration fee herein imposed.

The registration fee shall be paid to an authorized agent bank located within the revenue district, or to the Revenue Collection Officer, or duly authorized Treasurer of the city or municipality where each place of business or branch is registered.

How to Fill Out BIR Form 0605 – Payment Form

Annual Registration Fee (ARF) is filed through BIR form 0605 with the following details:

• Item 4: Due Date – 01/31/Current Year
• Item 6: ATC – MC180 – Registration Fee for VAT/NON-VAT Taxpayers
• Item 7: Return Period – Date of Filing
• Item 8: Tax Type Code – RF
• Item 17: Manner of Payment – Others “Annual Registration Fee”
• Item 18: Type of Payment – Full Payment
• Item 19: Basic Tax – Php 500.00

Other items in the BIR form 0605 will be filled-out depending on your company details such as year ending, RDO Code, TIN, Name, Address, etc.

Penalty for Non-compliance or Late Filing of ARF

Business establishments cannot make an excuse in its failure to file and pay the BIR Annual Registration. Failure to file the ARF within the prescribed deadline is subject to the SIC system of BIR.

SURCHARGES

NIRC SEC. 248. – Civil Penalties. (A) There shall be imposed, in addition to the tax required to be paid, a penalty equivalent to twenty-five percent (25%) of the amount due, in the following cases:
(1) Failure to file any return and pay the tax due thereon as required under the provisions of this Code or rules and regulations on the date prescribed; or
(2) Unless otherwise authorized by the Commissioner, filing a return with an internal revenue officer other than those with whom the return is required to be filed; or
(3) Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assessment; or
(4) Failure to pay the full or part of the amount of tax shown on any return required to be filed under the provisions of this Code or rules and regulations, or the full amount of tax due for which no return is required to be filed, on or before the date prescribed for its payment.

INTERESTS

NIRC SEC. 249. Interest. – (A) In General. – There shall be assessed and collected on any unpaid amount of tax, interest at the rate of twelve percent [12] per annum, or such higher rate as may be prescribed by rules and regulations, from the date prescribed for payment until the amount is fully paid. (The old 20% interest rate was amended under the Tax Reform Acceleration Inclusion [TRAIN] Law – Double the legal interest rate per annum… see RR 21-2018)

COMPROMISE PENALTY (Late Filing is Php1,000.00)

NIRC SEC. 255. Failure to File Return, Supply Correct and Accurate Information, Pay Tax Withhold and Remit Tax and Refund Excess Taxes Withheld on Compensation. – Any person required under this Code or by rules and regulations promulgated thereunder to pay any tax make a return, keep any record, or supply correct the accurate information, who willfully fails to pay such tax, make such return, keep such record, or supply correct and accurate information, or withhold or remit taxes withheld, or refund excess taxes withheld on compensation, at the time or times required by law or rules and regulations shall, in addition to other penalties provided by law, upon conviction thereof, be punished by a fine of not less than Ten thousand pesos (P10,000) and suffer imprisonment of not less than one (1) year but not more than ten (10) years.

Any person who attempts to make it appear for any reason that he or another has in fact filed a return or statement, or actually files a return or statement and subsequently withdraws the same return or statement after securing the official receiving seal or stamp of receipt of internal revenue office wherein the same was actually filed shall, upon conviction therefor, be punished by a fine of not less than Ten thousand pesos (P10,000) but not more than Twenty thousand pesos (P20,000) and suffer imprisonment of not less than one (1) year but not more than three (3) years.

COMPROMISE PENALTY (FAILURE TO DISPLAY THE ANNUAL REGISTRATION FEE )

Failure to display the Annual Registration Fee in a conspicuous area of the business establishment will be penalized for a fine of not more than Php 1,000.00 or imprisonment of not more than 6 months (Sec. 275 of NIRC, RMO 7-2015)

Revised premium contributions

Effective the applicable month of January 2018, the monthly premium contributions shall be at the rate of 2.75% computed straight based on the monthly basic salary, with a salary floor of Php 10,000 and a ceiling of Php 40,000.00, to be equally shared by the employees and their respective employer. Those who are earning above Php 40,000.00, the contribution shall be 550 both for employee and employer (total of 1,100/mo). With the removal of the salary brackets, computation shall be based on the following table:

Contributions of Kasambahays

In accordance with RA 10361, the premium contributions of the Kasambahay shall be shouldered solely by the household employer. However, if the Kasambahay is receiving a monthly salary of five thousand pesos (Php 5,000) or above, the Kasambahay shall pay his/her proportionate share.