BIR vows ‘clearer rules’, safeguards for tax audits
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [JANUARY 16-22]
- SEC AMENDS AUDIT THRESHOLD REQUIREMENT
- BIR CLARIFIES THE MANDATORY REGISTRATION OF PERMANENTLY BOUND LOOSE-LEAF & COMPUTERIZED BOOKS OF ACCOUNTS THROUGH ORUS & PROVIDES EXTENSION OF REGISTRATION DEADLINES
I. TAX & BUSINESS-RELATED NEWS [JANUARY 16-22]
1. DOLE to employers: Release workers’ final pay, COE on time
2. CFO leads first care retirement community for aging Filipinos abroad
3. More top contractors to develop socialized housing units under 4PH
4. SEC exempts micro enterprises from audited FS requirement
5. Baguio sees P72-M annual revenues from refurbished Maharlika complex
6. Robinsons Hotels recognized as Muslim-friendly by DOT
7. SEC issues new rules to simplify process for corporate amendments
8. Magalong underscores role of finance officers in governance
DOLE to employers: Release workers’ final pay, COE on time [GMA News Online, January 22, 2026]
In a statement, the DOLE cited Labor Advisory No. 06, series of 2020, in stressing the importance of the timely release of the final pay and COE of workers who left their jobs.
https://www.gmanetwork.com/news/topstories/nation/973711/dole-to-employers-release-workers-final-pay-coe-on-time/story/
CFO leads first care retirement community for aging Filipinos abroad [The Manila Times, January 22, 2026]
THE Commission on Filipinos Overseas (CFO) has been designated as the lead policy agency for the country’s first “Continuing Care Retirement Community” (CCRC), a landmark project aimed at providing long-term care and a sustainable home for aging members of the Philippine diaspora.
https://www.manilatimes.net/2026/01/22/news/national/cfo-leads-first-care-retirement-community-for-aging-filipinos-abroad/2262852
More top contractors to develop socialized housing units under 4PH [GMA News Online, January 22, 2026]
The Department of Human Settlements and Urban Development (DHSUD) on Wednesday welcomed the move of more Quadruple A contractors to develop socialized housing projects under the government’s Expanded Pam
https://www.gmanetwork.com/news/topstories/nation/973719/more-top-contractors-to-develop-socialized-housing-units-under-4ph/story/
SEC exempts micro enterprises from audited FS requirement [GMA News Online, January 21, 2026]
Under Memorandum Circular 4 issued on January 20, the SEC raised the threshold for those exempt from submitting audited financial statements from P600,000 to P3 million previously, applicable to financial statements covering fiscal years ending on or after December 31, 2025.
https://www.gmanetwork.com/news/money/companies/973602/sec-exempts-micro-enterprises-audited-financial-statement-requirement/story/
Baguio sees P72-M annual revenues from refurbished Maharlika complex [Philippine News Agency, January 20, 2026]
This is a significant jump from the previous PHP500,000 yearly rental income before the facility was turned over to the city.
https://www.pna.gov.ph/articles/1267353
Robinsons Hotels recognized as Muslim-friendly by DOT [ABS-CBN, January 20, 2026]
“At least 5 percent of guest rooms are equipped with Qibla direction, prayer mats, and Quran availability. These establishments also provide facilities for ablution, designated prayer rooms with separate spaces for male and female guests,” Valderrosa-Abubakar said.
https://www.abs-cbn.com/news/business/2026/1/20/robinsons-hotels-recognized-as-muslim-friendly-by-dot-1950
SEC issues new rules to simplify process for corporate amendments [Philippine Daily Inquirer, January 20, 2026]
The new rules aim to ensure consistency and efficiency in amending articles of incorporation and bylaws through digitalization, standardized forms and clearer transaction classification. The regulator aims to reduce processing times beyond those required by the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.
https://business.inquirer.net/569530/sec-issues-new-rules-to-simplify-process-for-corporate-amendments
Magalong underscores role of finance officers in governance [The Manila Times, January 20, 2026]
“Every peso properly accounted for strengthens public trust, supports our teachers, equips our classrooms and safeguards the future of our learners,” the mayor said in his message during the Regional Seminar-Workshop of the Association of DepEd Bookkeepers, Jan. 13, at Hotel Supreme Convention Plaza, here.
https://www.manilatimes.net/2026/01/20/regions/magalong-underscores-role-of-finance-officers-in-governance/2261188
If you wish to get a copy of complete text of CTA cases, please e-mail us at taxseminars@dmdcpa.com.ph.
II. SEC AMENDS AUDIT THRESHOLD REQUIREMENT
SEC Memorandum Circular (MC) No. 4, Series of 2026, issued on January 20, 2026, amended the audit threshold under the Revised Securities Regulation Code (SRC) Rule 68, providing that stock and non-stock corporations with total assets or total liabilities exceeding Php 3,000,000 are required to submit Audited Financial Statements (AFS), while those at or below the threshold are exempt from the audit requirement and may instead submit financial statements accompanied by a Statement of Management’s Responsibility (SMR). The exemption does not apply to entities classified as Group A, B, or C, or to corporations vested with public interest, which remain subject to mandatory audit requirements regardless of size. The MC also revises the definitions of Small and Micro Entities consistent with the new threshold and shall apply to financial statements covering fiscal years ending on or after December 31, 2025. The amendment aligns requirements with current economic conditions of MSMEs, reduces compliance burden for micro enterprises while maintaining accountability, and supports ease of doing business.
It may be recalled that under the old rules, AFS is required if total assets/liabilities exceed Php 600,000.
III. BIR CLARIFIES THE MANDATORY REGISTRATION OF PERMANENTLY BOUND LOOSE-LEAF & COMPUTERIZED BOOKS OF ACCOUNTS THROUGH ORUS & PROVIDES EXTENSION OF REGISTRATION DEADLINES
Revenue Memorandum Circular (RMC) No. 004-2026, issued on January 15, 2026, clarifies the mandatory registration of Permanently Bound Loose-Leaf Books of Accounts and Computerized Books of Accounts through the Online Registration and Update System (ORUS), pursuant to RMC No. 3-2023, and provides for the extended deadline for registration.
Highlights include:
a. Mandatory registration through ORUS within the prescribed deadlines unless the BIR extends or upon the request of the taxpayer before the lapse of the original period.
b. After registration, a QR Code is generated which shall be affixed on the first page for loose-leaf books. For computerized books, the QR code shall be printed and keep for records
c. Manual registration with the RDO or the taxpayer’s Head Office/Branch is allowed in exceptional cases such that ORUS is unavailable due to system downtime or technical errors, subject to the official advisory on ORUS downtime with the screenshot of error message presented.
d. Loose-leaf invoices, receipts, and other accounting records remain under manual registration at the RDO since these are not yet available for online registration.
e. Due to intermittent ORUS connectivity issues, registration deadlines are extended to January 31, 2026 (from the original deadline of January 15, 2026) for Permanently Bound Loose-Leaf Books, and to February 17, 2026 (from January 30, 2026) for Computerized Books.
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