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Responses to frequently asked questions from business owners. Given that circumstances between individuals and entities may differ, this should not be construed as a business advice, but rather a general reference to help educate stakeholders.
What are the registration process for a new business in the Philippines?
To register a new business in the Philippines, choose a business structure (sole proprietorship, partnership, or corporation) and register your business name with the DTI (for sole proprietorship) or SEC (for partnerships and corporations). Obtain a Barangay Clearance from the local barangay and secure a Mayor’s Permit from the city or municipal hall. Register with the BIR to obtain a Taxpayer Identification Number (TIN), a Certificate of Registration (COR), and authority to issue official receipts. If hiring employees, register with SSS, PhilHealth, and Pag-IBIG for employee benefits. Open a business bank account using the required registration documents. Depending on the industry, secure additional licenses from relevant government agencies.
Should you require assistance, please don't hesitate to reach out to us.
I received a Letter of Authority from the BIR for a tax audit of my business, what should I do?
Upon receiving a Letter of Authority (LOA) from the BIR, first verify its authenticity by checking the signatories and tax details. Review the scope of the audit, ensuring the tax periods and types match your records. Prepare the necessary documents, including tax returns, financial statements, books of accounts, and supporting records. Cooperate with the assigned BIR officers and submit requested documents within the deadline. If discrepancies arise, address them promptly and respond to any Notice of Discrepancy (NOD) or tax assessment notices. If you disagree with the findings, you may file a protest. For complex audits or large tax deficiencies, seek assistance from a CPA or tax lawyer to ensure compliance and proper handling of the audit.
Should you require assistance, please don't hesitate to reach out to us.
I'm new in operating my business, what compliance with BIR and other government agencies I should know ?
As a new business owner in the Philippines, you must comply with various tax and regulatory requirements from the Bureau of Internal Revenue (BIR) and other government agencies. Here’s an overview of your key compliance obligations:
1. BIR Compliance
1. BIR Compliance
A. Registration – Secure a Certificate of Registration (BIR Form 2303) and apply for an Authority to Print (ATP) invoices/receipts.
B. Books of Accounts – Register and maintain manual, loose-leaf, or computerized books of accounts.
C. Tax Returns and Payments – File and pay the following, depending on your business type:
Monthly/Quarterly Percentage Tax (BIR Form 2551Q) or Value-Added Tax (BIR Form 2550M/Q)
Quarterly & Annual Income Tax (BIR Forms 1701/1702, 1701Q/1702Q)
Withholding Tax (BIR Forms 1601E, 1601F, 0619E, etc.) if applicable
Annual Compliance – Submit the Annual Income Tax Return (AITR), Audited Financial Statements (if applicable), and BIR Form 2316 for employees.
2. Local Government Compliance
2. Local Government Compliance
A. Mayor’s Permit Renewal – Renew your Business Permit with the LGU annually in January.
B. Barangay Clearance – Renew as required by the barangay.
3. Employee-Related Compliance (If You Have Employees)
3. Employee-Related Compliance (If You Have Employees)
SSS, PhilHealth, and Pag-IBIG – Register as an employer and remit employee contributions monthly.
Payroll & Withholding Tax – Deduct and remit compulsory contributions and withholding taxes on salaries.
4. Non-Individual* Compliance
4. Non-Individual* Compliance
Corporations** (including non profit organizations, associations etc.) under Securities and Exchange Commission - Submit audited financial statements with the SEC thru online channel (SEC OST) annually, and submit general information sheet 30 days after annual meeting.
Cooperatives under Cooperative Development Authority - Submit audited financial statements with the CDA and other reports necessary thru CDA's proper channels (e.g. CAPRIS etc.).
*Not all legal entities with regulatory requirements are listed above. If your business is not listed above, don't hesitate to reach out to us for more information.
**Partnerships are not required to submit AFS to SEC.
5. Other Industry-Specific Licenses
5. Other Industry-Specific Licenses
Secure additional permits if your business falls under regulated industries (e.g., FDA for food and drugs, BOC for import/export, PCAB for contractors, PhilGEPS for government suppliers).
Should you require assistance, please don't hesitate to reach out to us.
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