Running a business in the Philippines means facing one of Asia’s most document-intensive compliance regimes. Between the Bureau of Internal Revenue (BIR), the Securities and Exchange Commission (SEC), the Philippine Economic Zone Authority (PEZA), the Department of Labor and Employment (DOLE), and three mandatory employee benefit agencies, a single missed deadline can trigger cascading penalties that dwarf the original obligation.
This guide is your definitive 2026 reference. It covers every major filing Forms 1702, 1702Q, 2550M, 1601-C, and more with exact deadlines, penalty schedules, and the practical steps your finance team needs to stay clean.
Why Philippines Compliance Matters More in 2026
The BIR collected a record ₱3.05 trillion in 2024 and has continued to intensify enforcement through its Run After Tax Evaders (RATE) programme and the digitised Electronic Filing and Payment System (eFPS/eBIRForms). In 2025, the BIR issued Revenue Memorandum Circular (RMC) 44-2025 tightening documentary requirements for input VAT claims, while the SEC upgraded its OSC (Online Submission Centre) platform to mandate electronic filing for all corporations with paid-up capital above ₱600,000.
Add the CREATE MORE Act (Republic Act 12066, signed 2024) which reshaped incentive frameworks for PEZA and other Investment Promotion Agency (IPA) registered entities, and 2026 is arguably the most consequential compliance year for Philippine businesses since the TRAIN Law of 2018.
Below is everything you need, agency by agency.
BIR Annual Income Tax Return Form 1702
Who Must File
All domestic corporations, resident foreign corporations, and partnerships — regardless of whether they had taxable income in the period.
Which Form to Use
| Entity Type | Form |
|---|---|
| Corporation taxed under regular rate (25% / 20%) | Form 1702-RT |
| Corporation with mixed income (incentivised + regular) | Form 1702-MX |
| Corporation under special income tax rate only | Form 1702-EX |
Key Deadlines
- Calendar year taxpayers: On or before 15 April of the following year (e.g., 15 April 2026 for FY 2025).
- Fiscal year taxpayers: On or before the 15th day of the 4th month following the close of the fiscal year.
- Extension: No automatic extension exists. A written request may be filed, but BIR approval is discretionary and rare.
Documentary Requirements
- Audited Financial Statements (AFS) stamped “received” by the BIR
- Statement of Management Responsibility (SMR)
- Certificate of creditable tax withheld at source (BIR Form 2307)
- Proof of prior year’s excess credits (if applicable)
- PEZA/BOI certificate of registration (for incentivised entities)
2026 Corporate Income Tax Rates Under CREATE MORE
| Taxpayer Category | Rate |
|---|---|
| Domestic corporation (net taxable income ≤ ₱5 million AND total assets ≤ ₱100 million excluding land) | 20% |
| Domestic corporation (all others) | 25% |
| PEZA/IPA-registered entity (IT/IAET incentives) | 5% SCIT or ITH (see Section 8) |
| Minimum Corporate Income Tax (MCIT) — 4th year onwards | 2% of gross income |
Practical tip: MCIT applies when it exceeds the regular CIT. Track both computations every quarter to avoid surprises at year-end.
Quarterly Corporate Income Tax Form 1702Q
Corporations must file quarterly CIT returns and pay the cumulative tax due for the period, crediting taxes already paid in prior quarters.
Deadlines (Calendar Year Basis)
| Quarter | Period Covered | Deadline |
|---|---|---|
| 1st Quarter | Jan – Mar | 60 days after end of quarter (May 29, 2026) |
| 2nd Quarter | Jan – Jun | 60 days after end of quarter (Aug 29, 2026) |
| 3rd Quarter | Jan – Sep | 60 days after end of quarter (Nov 29, 2026) |
| Annual (4th) | Jan – Dec | April 15, 2027 (via Form 1702) |
Note: eFPS filers have staggered deadlines by industry group — confirm your group classification on your BIR Certificate of Registration (Form 2303).
Monthly VAT Form 2550M & Quarterly Form 2550Q
VAT-registered businesses with annual gross sales or receipts exceeding ₱3 million must comply with both monthly and quarterly VAT reporting.
Monthly VAT (Form 2550M)
- Due: On or before the 20th day of the following month (eFPS filers) or the same day (eBIRForms filers)
- Example: January 2026 VAT → due 20 February 2026
- Content: Output VAT on sales, input VAT on purchases, VAT payable or excess input credits
Quarterly VAT (Form 2550Q)
- Due: 25th day following the close of each taxable quarter
- This is a summary it does not eliminate the monthly filing obligation
Common VAT Pitfalls in 2026
- Input VAT documentation: RMC 44-2025 requires official receipts or e-invoices with complete taxpayer information; handwritten or incomplete receipts are disallowed
- Zero-rating for PEZA locators: Sales to PEZA-registered entities qualify for zero-rated VAT maintain cross-border transaction logs and PEZA sales invoices
- VAT on digital services: Foreign digital service providers must register for VAT under RR 2-2021; domestic businesses purchasing such services must withhold 12% VAT
Withholding Tax Returns
The Philippine withholding tax regime is one of the most granular in Southeast Asia. Three returns are most critical for employers and businesses making payments to vendors.
Form 1601-C Monthly Withholding on Compensation
- Who files: Every employer with salaried employees
- Due: 10th day of the following month (eFPS); 15th day (eBIRForms manual)
- Covers: Withholding on salaries, wages, bonuses, and other compensation
Form 0619-E / 1601-EQ Expanded Withholding Tax (EWT)
- Monthly remittance (0619-E) due on the 10th/15th of the following month
- Quarterly return (1601-EQ) due on the last day of the month following the quarter
- Common EWT rates: Professional fees (10%/15%), rentals (5%), payments to contractors (2%), interest to individuals (20%)
Form 1604-CF Annual Information Return
- Due: 31 January of the following year
- Summarises all compensation withheld for the year; triggers the employer’s obligation to issue BIR Form 2316 to each employee by the same date
Warning: Failure to file 1604-CF or issue Form 2316 to employees carries a ₱1,000 per return penalty plus potential criminal liability for the responsible officer under Section 255 of the Tax Code.
SEC Annual Obligations GIS & Audited Financial Statements
General Information Sheet (GIS)
The GIS is filed annually with the SEC and captures the company’s current ownership structure, directors, officers, and principal office address. It is a governance document, not a tax return but failure to file triggers automatic suspension of the corporation’s SEC Certificate of Registration.
- Deadline: Within 30 calendar days from the date of the annual stockholders’ or members’ meeting
- Filing platform: SEC Electronic Filing and Submission Tool (eFAST) for most corporations
- Required attachments: Updated list of stockholders with nationality, proof of beneficial ownership (for corporations with 40%+ foreign equity), and certified true copies of board resolutions if officers changed
Annual Financial Statements (AFS)
Corporations are required to submit audited financial statements prepared by an independent Certified Public Accountant (CPA) accredited by the SEC.
| Total Assets | Applicable Standard |
|---|---|
| Below ₱3 million (non-public interest) | PFRS for Small Entities or cash basis |
| ₱3 million – ₱350 million | PFRS for SMEs |
| Above ₱350 million or publicly listed | Full PFRS |
SEC AFS filing deadlines are staggered based on the last digit of the SEC registration number:
| Last Digit of SEC Reg. No. | Deadline |
|---|---|
| 1 or 2 | July 30 |
| 3 or 4 | August 14 |
| 5 or 6 | August 29 |
| 7 or 8 | September 13 |
| 9 or 0 | September 28 |
Note: AFS must first be stamped “received” by the BIR (as an attachment to Form 1702) before submission to the SEC. The BIR stamp is your proof of prior filing. [INTERNAL LINK: Learn about BIR stamping requirements]
PEZA Quarterly & Annual Reports
Entities registered with the Philippine Economic Zone Authority (PEZA) carry a separate, parallel compliance track alongside BIR and SEC requirements. Non-compliance with PEZA reporting can result in cancellation of incentives — meaning you lose ITH or SCIT status and become liable for regular CIT retroactively.
Quarterly Reports to PEZA
| Report | Frequency | Deadline |
|---|---|---|
| Quarterly Performance Report (QPR) | Quarterly | 30 days after each quarter-end |
| Employment Report | Quarterly | With QPR submission |
| Importation / Raw Materials Report | Quarterly | 30 days after quarter-end |
Annual PEZA Reports
- Annual Incentives Report (AIR): Filed with PEZA and the Fiscal Incentives Review Board (FIRB) due by 30 April of the following year under RA 11534 (CREATE Act) guidelines
- Audited Financial Statements: Submitted directly to PEZA in addition to SEC submission
- CARP Compliance Report (for agricultural economic zones): Annual
PEZA Compliance Under CREATE MORE (2024–2026)
CREATE MORE amended the tax incentive framework for PEZA locators significantly. Key changes affecting 2026 compliance include:
- The VAT zero-rating on local purchases is now confirmed and permanent for PEZA entities with approved FIRB applications
- Entities that registered prior to CREATE (before July 2021) and are in their ITH period must file an enhanced AIR disclosing investment capital, employment headcount, and export performance thresholds
- Transition to 5% Special Corporate Income Tax (SCIT) replacing the pre-CREATE Gross Income Earned (GIE) tax — is now governed by FIRB Resolution No. 002-2024
[INTERNAL LINK: Read our full guide to PEZA registration and incentives]
CREATE MORE Act: Tax Incentives You Cannot Afford to Ignore
Republic Act 12066, known as the CREATE MORE Act (Corporate Recovery and Tax Incentives for Enterprises to Maximise Opportunities for Reinvigorating the Economy), was signed into law in 2024 and its implementing rules took effect in 2025. For 2026 compliance purposes, here is what matters operationally.
Income Tax Holiday (ITH)
- ITH periods range from 4 to 7 years depending on activity tier and location
- During ITH: 0% income tax on registered activities; non-registered income taxed at 25%/20%
- Compliance obligation: Annual certification from PEZA/BOI confirming continued qualification; failure to submit voids ITH entitlement
Special Corporate Income Tax (SCIT)
- 5% on gross income earned from registered activities, in lieu of all national and local taxes
- Replaces the old GIE regime for post-CREATE registrants
- Gross income definition: Net sales less cost of sales (direct materials, direct labour, manufacturing overhead) operating expenses are not deducted
Enhanced Deductions (ED) New Under CREATE MORE
CREATE MORE introduced a new incentive tier Enhanced Deductions as an alternative to SCIT for certain entities:
| Deduction Item | Additional Deduction Rate |
|---|---|
| Labour training expenses | Additional 50% |
| Domestic input expenses | Additional 50% |
| Research & development | Additional 100% |
| Infrastructure development | Additional 100% |
| Power cost (in qualified zones) | Additional 50% |
Key compliance action: Entities claiming ED must keep granular documentation of each qualifying expenditure category — the FIRB and BIR have indicated joint audit authority over ED claims beginning in 2026.
DOLE Compliance Requirements
The Department of Labor and Employment administers several annual reporting and certification requirements that carry their own penalty regime, separate from BIR and SEC.
Annual Establishment Report (DOLE Department Order 174-17 / Labor Code)
- All private establishments with 5 or more workers must submit an Annual Establishment Report to the nearest DOLE Regional Office
- Deadline: On or before 31 January of the following year
- Covers: workforce profile, employment status, wages paid, benefits, occupational safety incidents
BWSC Compliance (Regional Wage Boards)
- All employers must comply with the applicable Regional Tripartite Wages and Productivity Board (RTWPB) minimum wage orders
- In 2025, all 16 regional wage boards issued updated wage orders — verify the current minimum for your region before processing payroll in 2026
Occupational Safety & Health (OSH) Reports
- Annual OSH Report: Due 31 January
- Work accident/illness reports (for notifiable incidents): Within 24 hours (verbal/electronic) + 5 working days (written) to DOLE
SEnA (Single Entry Approach) Readiness
All employers should maintain updated Grievance Machinery documentation. DOLE SEnA desks can trigger mandatory conciliation within 30 days of any labour complaint having updated employment contracts, CBA records (if unionised), and HR policy manuals significantly reduces exposure.
SSS, PhilHealth & Pag-IBIG Employer Obligations
These three mandatory benefit agencies operate independently, each with their own portal, contribution tables, and penalty structure. As of 2026:
Social Security System (SSS)
| Item | Detail |
|---|---|
| Contribution rate (2026) | 15% of Monthly Salary Credit (MSC) — 10% employer share + 5% employee share under the 2024 hike schedule |
| MSC ceiling | ₱35,000 (scheduled increase per Republic Act 11199) |
| Remittance deadline | Based on 10th digit of 13-digit employer number — ranges from the 10th to 15th of the following month |
| Annual report | SSS Employer Contributions Report — filed via My.SSS portal; reconciled against monthly R-5 forms |
PhilHealth
| Item | Detail |
|---|---|
| Premium rate (2026) | 5% of Basic Monthly Salary (employer and employee split equally at 2.5% each) |
| Monthly salary floor / ceiling | ₱10,000 (floor) / ₱100,000 (ceiling) |
| Remittance deadline | On or before the last day of the month following the applicable period |
| Portal | PhilHealth EPRS (Electronic Premium Remittance System) |
Pag-IBIG Fund (HDMF)
| Item | Detail |
|---|---|
| Monthly contribution | ₱100 employer + ₱100 employee for salary ≤ ₱1,500; 2% employer + 2% employee for salary ˃ ₱1,500 (capped at ₱200 each for mandatory; voluntary contributions allowed beyond) |
| Remittance deadline | On or before the 15th of the following month (for employers with 1–10 employees) or the 10th (11+ employees) |
| Annual certification | Employer Certification of Remittances — required for employee housing loan applications; maintain copies for 5 years |
Critical: Deducting employee contributions from payroll but failing to remit to any of these agencies constitutes estafa (fraud) under the Revised Penal Code in addition to administrative penalties. Ensure payroll cycles and remittance cycles are aligned.
Books of Account BIR Stamping & eAFS Requirements
Every BIR-registered taxpayer is required to maintain books of account. The requirements differ based on annual gross sales and whether the taxpayer has opted for computerised accounting.
Manual Books of Account
- Required books: General Journal, General Ledger, Cash Receipts Book, Cash Disbursements Book, Subsidiary Ledgers (where applicable)
- New books must be registered and stamped by the BIR Revenue District Office (RDO) before use
- Loose-leaf books must be bound and submitted to the RDO within 15 days after the end of each taxable year
Computerised Books of Account (CBA)
- Taxpayers using accounting software must apply for a Permit to Use Computerised Accounting System (CAS) or Computerised Books of Account (CBA) from the BIR
- Annual submission of books in electronic format (via eAFS Electronic Audited Financial Statements system) is mandatory for large taxpayers and optional for others
- eAFS submission deadline: Simultaneous with the filing of the Annual ITR (Form 1702)
Retention Period
Books of account, supporting documents (official receipts, invoices, contracts, bank statements) must be retained for 10 years 5 years in the principal place of business and 5 years in off-site or electronic storage following the requirements under Revenue Regulations 17-2013 as clarified by subsequent RMCs.
2026 Update: The BIR has been intensifying surprise inspections (TCVD Tax Compliance Verification Drive) targeting unstamped or unregistered books. Penalties include closure orders (Oplan Kandado) for serious violations.
Penalty Matrix What Non-Compliance Actually Costs
The following penalties apply under the National Internal Revenue Code (NIRC) as amended by the TRAIN Law and CREATE Act, plus relevant agency-specific rules.
BIR Penalties
| Violation | Penalty |
|---|---|
| Failure to file any return on time | 25% surcharge on tax due |
| Fraudulent return or wilful neglect to file | 50% surcharge on tax due |
| Deficiency tax interest | 12% per annum (double the legal interest rate) on unpaid tax |
| Delinquency interest | 12% per annum from due date until full payment |
| Compromise penalty (per return, minor violations) | ₱1,000 – ₱50,000 depending on violation and tax type |
| Failure to register books of account | ₱1,000 per unregistered book + closure risk |
| Criminal prosecution (tax evasion) | Fine of ₱30,000–₱100,000 + 2–4 years imprisonment per offence |
SEC Penalties
| Violation | Penalty |
|---|---|
| Late filing of GIS | ₱10,000 for first offence; ₱20,000 for second; ₱30,000 + revocation threat for third |
| Late filing of AFS | ₱10,000 per year of default (for large companies, scaled up) |
| Failure to file GIS for 5 consecutive years | Automatic revocation of corporate registration |
PEZA Penalties
| Violation | Consequence |
|---|---|
| Failure to submit QPR on time | Written notice + 30-day cure period; suspension of import/export privileges if uncured |
| Failure to maintain employment thresholds | ITH/SCIT downgrade or cancellation |
| Misuse of incentivised assets | Recovery of incentives + 25% surcharge + criminal referral to DOJ |
SSS / PhilHealth / Pag-IBIG Penalties
| Agency | Late Remittance Penalty |
|---|---|
| SSS | 3% per month on unpaid contributions + possible criminal liability |
| PhilHealth | 2% per month on unremitted premiums |
| Pag-IBIG | 1/10 of 1% per day (approximately 3% per month) on unremitted contributions |
2026 Master Compliance Calendar
The table below consolidates the major deadlines for a calendar year taxpayer. Fiscal year entities must adjust quarter-end months accordingly.
| Month | Filing / Obligation | Agency |
|---|---|---|
| January 15 | Form 1601-C (December compensation withholding) | BIR |
| January 20 | Form 2550M (December VAT) | BIR |
| January 25 | Form 2550Q (Q4 2025 VAT) | BIR |
| January 30 | Form 1604-CF (Annual withholding return) + issuance of BIR Form 2316 | BIR |
| January 31 | DOLE Annual Establishment Report; OSH Annual Report | DOLE |
| February 28 | Form 1702Q — Q4 2025 CIT (60 days from Dec 31) | BIR |
| Monthly (10th–20th) | SSS R-5, PhilHealth EPRS, Pag-IBIG remittance; Forms 1601-C, 0619-E, 2550M | BIR / SSS / PhilHealth / Pag-IBIG |
| April 15 | BIR Form 1702 (Annual ITR for FY 2025) + AFS stamping + eAFS submission | BIR |
| April 30 | PEZA Annual Incentives Report (AIR) | PEZA / FIRB |
| May 29 | Form 1702Q — Q1 2026 (60 days from March 31) | BIR |
| Within 30 days of ASM | SEC GIS filing via eFAST | SEC |
| July 30 – Sep 28 | SEC AFS filing (staggered by last digit of SEC reg. number) | SEC |
| August 29 | Form 1702Q — Q2 2026 (60 days from June 30) | BIR |
| November 29 | Form 1702Q — Q3 2026 (60 days from September 30) | BIR |
| Quarterly (30 days post-quarter) | PEZA Quarterly Performance Report; Form 1601-EQ | PEZA / BIR |
Getting Compliant Next Steps
Philippines compliance in 2026 demands that you manage at least six agencies simultaneously BIR, SEC, PEZA (if applicable), DOLE, SSS, PhilHealth, and Pag-IBIG each with its own portal, deadline logic, and penalty regime. The penalties for missing filings compound quickly: a missed Form 1702, an unstamped ledger, and a late SEC GIS can collectively trigger six-figure penalties before a BIR audit even begins.
The most common failure mode for growing businesses is not ignorance of the rules it is the absence of a system: someone who owns the calendar, pre-pares the documents, and verifies submission before the deadline passes.
Here is the practical action plan:
- Assign ownership. Designate a compliance officer or engage a local CPA firm with BIR and SEC accreditation.
- Audit your registrations. Confirm your BIR COR (Form 2303) reflects the correct tax types. Incorrect COR registration is the root cause of many inadvertent non-filing penalties.
- Review your incentive status. If you are PEZA or BOI registered, confirm whether you are in ITH, SCIT, or ED under CREATE MORE and update your Form 1702 variant accordingly.
- Implement the calendar. Download our free Philippines Compliance Calendar and assign each deadline to a named team member in your project management tool.
- Get your books stamped. If you have used any new manual ledger books in 2025 without BIR stamping, rectify this before the next TCVD inspection cycle.
Frequently Asked Questions
What is the deadline for the BIR Annual Income Tax Return (Form 1702) in 2026?
For calendar year taxpayers, Form 1702 must be filed on or before 15 April 2026 (covering fiscal year 2025). Fiscal year taxpayers file on or before the 15th day of the 4th month after the close of their fiscal year.
What is the SEC General Information Sheet (GIS) and when is it due?
The GIS is an annual disclosure filed with the SEC that captures a corporation’s ownership structure, directors, and officers. It must be filed within 30 calendar days from the date of the annual stockholders’ meeting. Late filing attracts penalties starting at ₱10,000.
What PEZA reports are required quarterly?
PEZA-registered entities must submit a Quarterly Performance Report (QPR), an Employment Report, and an Importation/Raw Materials Report within 30 days after the end of each quarter. Failure to file can result in suspension of incentives.
What changed under the CREATE MORE Act for PEZA locators?
CREATE MORE (RA 12066, 2024) confirmed permanent VAT zero-rating on local purchases for PEZA entities, introduced an Enhanced Deductions (ED) incentive tier as an alternative to the 5% SCIT, and strengthened FIRB oversight of incentive compliance including mandatory Annual Incentives Reports tied to employment and export performance thresholds.
What are the penalties for late BIR filing in the Philippines?
Late BIR filings attract a 25% surcharge on the tax due, plus 12% annual interest (deficiency and delinquency) on unpaid amounts. Fraudulent returns carry a 50% surcharge. Compromise penalties ranging from ₱1,000 to ₱50,000 apply per return for administrative violations.
Do employers in the Philippines need to stamp their books of account?
Yes. Manual books of account must be registered and physically stamped by the BIR before first use. Computerised accounting systems require a BIR Permit to Use CAS. Unstamped books are a common trigger for Oplan Kandado (business closure) during BIR compliance inspections.