The Securities and Exchange Commission asked companies and associations that incurred penalties due to the late or non-filing of annual reports to avail of the amnesty program before stiffer penalties start to kick in October 2023.
“The SEC Amnesty Program is a chance for corporations and associations to get a fresh start in their compliance with reportorial requirements, so they continue to enjoy the benefits and privileges of being a registered corporation,” SEC chairperson Emilio Aquino said.
It said that since the announcement on the amnesty program in March, roughly 40,000 corporations had completed their amnesty application, enabling them to reclaim their good standing or corporate registration with the corporate regulator.
The amnesty, which comes in the form of a waiver or reduction of fees, is part of the SEC’s efforts to encourage its regulated entities to comply with their reportorial requirements under Republic Act No. 11232, or the Revised Corporation Code.
“We reiterate our reminder to all corporations that starting a business does not end with registration with the SEC. This is just the first step—they must faithfully comply with reportorial requirements thereafter to ensure their continuity and sustainability,” Aquino said.
The deadline for all amnesty applications is on Sept. 30.
The SEC is preparing guidelines on the new set of fines and penalties for the late and non-filing of reportorial requirements that will be imposed starting Oct. 1, 2023.
Under the proposed guidelines, the late filing of reportorial requirements by domestic stock and non-stock corporations with retained earnings of less than P100,000 will incur fines at a base amount of P5,000 for the first offence, which will increase to P9,000 for the fifth offence. There will also be a P1,000 monthly fine for every month of the continuing violation.
Non-filing of reportorial requirements by both stock and non-stock corporations with retained earnings of less than P100,000 will incur fines amounting to P10,000 for the first offence up to P18,000 for the fifth offence, plus a fine of P1,000 for every month of the continuing violation.
Stock corporations with retained earnings of up to P100,000 are fined P1,000 per year, while non-stock corporations are fined P500 for non-filing of reports. Fines for late filing are equivalent to 50 percent of the aforementioned rate.
Aside from monetary fines, the SEC may declare a corporation under delinquent status after it failed to submit its reportorial requirements for three times, consecutively or intermittently within five years.
The SEC can also revoke a corporation’s registration if it incurs a fourth offence and is given reasonable notice on its delinquent status.
