Philippines — Business: Accounting

Why this matters

Understanding accounting standards and requirements is crucial for businesses in the Philippines, as compliance is essential for tax purposes and maintaining a good reputation.

Key facts

• Books of accounts are registered online through ORUS, which generates a QR code stamp; RMC 4-2026 extended the 2026 deadlines to 31 January for loose-leaf books and 17 February for computerized books.
• Books must be registered before the deadline for the first quarterly or the annual income tax return, whichever is earlier.
• Books and accounting records must be kept for five years from the day after the filing deadline for the year of the last entry.
• Taxpayers with annual sales, earnings and receipts above PHP 3,000,000 must have books audited yearly by an independent CPA.
• Under the EOPT Act (RA 11976) the mandatory invoicing threshold rose to PHP 500; several taxpayer groups must comply with electronic invoicing by 31 December 2026 (RR 26-2025).

Steps

1. Registering with the SEC — Businesses must register with the SEC to obtain a Certificate of Registration, which is required for tax purposes. This involves submitting a Memorandum of Association and Articles of Incorporation.
2. Obtaining a Tax Identification Number (TIN) — Businesses must obtain a TIN from the BIR to pay taxes and file tax returns.
3. Maintaining Accurate Accounting Records — Businesses must maintain accurate accounting records, including financial statements, to ensure compliance with tax laws and regulations.