Reliable Business Services OPC

The Securities and Exchange Commission (SEC) has secured approval from the Department of Finance (DOF) to increase the audit threshold for corporations, allowing more micro enterprises to be exempt from submitting audited financial statements (AFS).

Key Points:
• New Audit Threshold:
Corporations (stock and nonstock) with total assets or liabilities not exceeding ₱3 million will no longer be required to submit audited FS.
(Previously, the threshold was only ₱600,000.)
• What to Submit Instead:
Covered corporations may submit certified financial statements, sworn under oath by:
• President and Treasurer, or
• Chief Financial Officer (CFO),
as authorized by the Board of Directors.
• Effectivity:
The ₱3 million threshold will apply to financial statements for fiscal years ending on or after December 31, 2025.
• Accountability:
Certifying officers are fully responsible for the accuracy and completeness of the financial statements.
False or misleading submissions remain subject to penalties under the SRC and Revised Corporation Code (RCC).
• Not Covered by the Exemption:
The higher threshold does NOT apply to corporations classified under Groups A, B, and C, including:
• Public companies and large corporations
• Financial institutions, brokers, investment houses
• Financing and lending companies
• Certain non-profit organizations with substantial funds
• Purpose of the Policy:
• Ease compliance burden on MSMEs
• Reduce costs and “rubber-stamp” audits
• Support economic growth while maintaining accountability
• Public Consultation:
Comments on the proposed rules were accepted by the SEC until December 24, 2025.

📣RELIABLE BUSINESS SERVICES IS HIRING!!

We are currently recruiting for the following positions:
-Accounting Associate
-Sales Associate
-Admin Assistant

We’re looking for driven individuals who are ready to grow with us and become part of a thriving, supportive team.

For more info, message us on our page or email us at ✉️[email protected]

BIR Suspends All Audit and Field Operations (RMC No. 107-2025)

Effective immediately, the Bureau of Internal Revenue (BIR) has ordered the suspension of all field audits and related field operations. This move aims to address systemic issues, protect taxpayer rights, and ensure integrity in the audit process.

The issuance of Letters of Authority (LOA), Mission Orders (MO), and the examination/verification of books of accounts are SUSPENDED until the order is lifted by the Commissioner.

While general audits are paused, the BIR will continue working on:
・Cases prescribing within six (6) months
・Estate Tax, Donor’s Tax, Capital Gains Tax, and Withholding Tax on land/share sales
・Retiring businesses
・Active criminal probes requiring immediate action
・Refund claims requiring an LOA
・Deadlines imposed by the Commissioner

The issuance of Assessment Notices, Warrants, and Seizure Notices will continue to maximize revenue collection.

Source: BIR website

BIR Update: Revenue Memorandum Circular (RMC) No. 91-2025

Clarification on the Documentary Requirements for Business Registration Being Signed by the Assistant Corporate Secretary of a Corporation

BIR Letter of Authority (LOA): Due Process, Taxpayer Remedies, and the Importance of the Termination Letter

When a Letter of Authority (LOA) is issued by the Bureau of Internal Revenue (BIR), it signifies the start of a formal audit or investigation of a taxpayer’s books of accounts and related documents. The LOA must be properly served to the taxpayer or its authorized representative to be valid, marking the beginning of the BIR’s examination for a specific taxable period.

🔍 Due Process in BIR Audits
The audit follows a structured process to ensure that the taxpayer’s rights are protected. The key stages include:

Notice of Discrepancy (NOD) – After the initial audit, the BIR issues an NOD to present its findings and potential discrepancies.
📌 The taxpayer is invited to a Discussion of Discrepancy, where they are given 30 days to respond and submit explanations, documents, or justifications to refute or clarify the findings.

Preliminary Assessment Notice (PAN) – If discrepancies remain unresolved, the BIR issues a PAN.
📌 The taxpayer has 15 days from receipt to respond and contest the assessment.

Final Assessment Notice (FAN) and Formal Letter of Demand (FLD) – If the taxpayer's reply to the PAN is not accepted or not submitted, the BIR issues the FAN and FLD.
📌 These are formal notices stating the final tax deficiency and demand for payment.

Protest Process – Upon receipt of the FAN and FLD, the taxpayer may:

File a Protest within 30 days from receipt (via request for reconsideration or reinvestigation),

Followed by submission of relevant documents within 60 days from filing the protest.

Final Decision on Disputed Assessment (FDDA) – If the protest is denied, the BIR issues an FDDA. At this stage, the taxpayer must decide whether to:

Pursue administrative remedy by appealing to the Commissioner of Internal Revenue within 30 days, or

Pursue judicial remedy by filing a Petition for Review with the Court of Tax Appeals (CTA), also within 30 days.

Failing to respond or file within these timelines may render the assessment final, executory, and demandable.

✅ Importance of the Termination Letter
If the audit findings are resolved and the assessment is fully paid, compromised, or abated through administrative means, the BIR will issue a Termination Letter. This document is the formal closure of the audit under the LOA, confirming that the case has been settled and no further action will be taken.

The Termination Letter is crucial for:

Proving that due process was observed,

Ensuring the audit is officially closed, and

Preventing the risk of future reassessment or collection for the same period.

📌 Summary:
Always ensure that your LOA audit ends with a Termination Letter from the BIR. It is your legal safeguard that the tax case is closed and settled—whether through payment, compromise, or abatement—especially when resolved administratively.

JUST IN

eBIRForms has been updated to Version 7.9.5

Source: BIR website

FYI

The Bureau of Internal Revenue (BIR) has recently issued Revenue Memorandum Circular (RMC) No. 20-2025 which clarifies certain policies, guidelines and procedures relative to the processing and issuance of Tax Clearance Certificate for Final Settlement of Government Contracts (TCFG).

👉 TCFG shall only be required and issued only for government contracts which involves the procurement of goods, consulting services, and infrastructure projects done through public bidding process pursuant to RA No. 9184 or the Government Procurement Reform Act, as amended by RA No. 12009;
👉 Procurement involving small value purchases are not required to secure TCFG;
👉 TCFG shall only be presented only prior to the final settlement of the government contract with its suppliers on a per contract basis. No TCFG shall be required during the initial and partial payments for the said contract;
👉 Tax Clearance Certificate for General Purposes (TCGP) specifically for collection purposes shall no longer be required from the contractor.

Source: BIR website