Corporate ComplianceSEC Extends AFS and GIS Late Filing Deadlines

December 12, 2024

Home » SEC Extends AFS and GIS Late Filing Deadlines

The Philippines’ Securities and Exchange Commission (SEC) has extended the Enhanced Compliance Incentive Program (ECIP) until December 31, 2024. This initiative encourages compliance among registered entities by offering benefits such as reduced penalties and streamlined processing of corporate documents.

Understanding the General Information Sheet (GIS) and Annual Financial Statement (AFS) Requirements

All businesses registered with the SEC are mandated to submit a General Information Sheet (GIS) annually. This document provides detailed information about the corporation, including its officers, shareholders, and corporate structure, ensuring that the SEC maintains up-to-date records for monitoring compliance and facilitating transparency.

In addition to the GIS, corporations must file an Annual Financial Statement (AFS) with the Bureau of Internal Revenue (BIR). The AFS outlines the business’s financial performance and position for the previous fiscal year and is a critical component of a company’s tax compliance obligations, ensuring accurate reporting and payment of taxes.

Procedure for ECIP Application

The Commission issues the following guidelines and reminders regarding the ECIP application process:

Filing of ECIP Application

The Commission will continue accepting Expressions of Interest (EOI) through a web-based application form available on the eFAST system until December 31, 2024.

Submission of Reportorial Requirements

Non-Compliant Corporations

Corporations that have not yet complied with reportorial requirements must submit the following documents via eFAST by December 31, 2024:

Latest Annual Financial Statement (AFS)
Latest General Information Sheet (GIS)

Suspended or Revoked Corporations

Corporations with suspended or revoked Certificates of Incorporation must adhere to the following:

Upload the latest AFS, GIS, and a Petition to Lift Order (PLO) of Suspension/Revocation via eFAST.
Submit the following supporting documents through designated SEC email addresses based on jurisdiction:
- Directors’ or Trustees’ Certificate
- The latest AFS (including attachments) received by the SEC and BIR
- Latest GIS as received by the SEC
- Copies of the Certificate of Incorporation and any Certificates of Filing of Amended Articles or By-laws, along with the latest Articles of Incorporation and By-laws
- Proof of registration of the stock and transfer book or membership book
- Secretary’s Certificate of No Intra-Corporate Controversy
- Sworn Certification by the External Auditor
- Proof of ongoing operations, such as:
  - Audited Financial Statements
  - Income Tax Returns
  - Mayor’s or Business Permits
  - Contracts
  - Real Estate Tax payment receipts
  - Certifications, Recognitions, or Annual Convention documents
  - Other relevant documentation
- Latest Mayor’s or Business Permit
- BIR Certificate of Registration
- Certification from the Corporate Secretary confirming receipt of the latest Financial Statement and Income Tax Return by the SEC and BIR
- Compliance with SEC Memorandum Circular No. 28, Series of 2020

Payment of ECIP Fees

Non-Compliant Corporations

ECIP fees must be paid via the Electronic System for Payment to SEC (eSPAYSEC).
Upon submission of the EOI, the eFAST system will generate a Payment Assessment Form (PAF) amounting to Php 20,000.00.

Suspended or Revoked Corporations

A PAF for Php 3,060.00 (petition fee) will be issued.
After settling the petition fee and submitting complete requirements, a second PAF equivalent to 50% of the total assessed fines and penalties will be sent to the registered email.
An electronic Official Receipt (eOR) will be issued for every transaction via eSPAYSEC.

Forfeiture of ECIP Fees

Failure to submit the complete set of requirements within the prescribed period will result in the forfeiture of the following:

Php 20,000.00 ECIP fee for non-compliant corporations
50% of the total assessed penalties for suspended/revoked corporations
Php 3,060.00 initial petition fee for suspended/revoked corporations

By adhering to these procedures, corporations can take advantage of the ECIP to rectify compliance issues and benefit from the incentives offered by the SEC.

For professional assistance with the ECIP application process, including preparing and submitting the necessary documents, please contact us. Our team of experts is ready to guide you through each step to ensure compliance with SEC requirements.

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