Corporations have another chance to clear their penalties for failure to file their annual reports to the Securities and Exchange Commission (SEC) at lower rates until November 30.
In 2023, the SEC gave non-compliant, suspended and revoked corporations a chance to settle their fines and penalties for the late and non-filing of their reports through an amnesty program.
Throughout the program’s nine-month run, over 81,700 corporations were able to complete their applications and get back their good standing with the SEC.
This year, the SEC is allowing non-compliant, delinquent, and suspended or revoked corporations that missed the Amnesty Program another chance to clear their track record of noncompliance by availing of the Enhanced Compliance Incentive Plan (ECIP).
Under SEC Memorandum Circular (MC) No. 13, Series of 2024, corporations that incurred fines and penalties for the late or non-filing of their Annual Financial Statements (AFS), General Information Sheets (GIS), and noncompliance with MC No. 28, Series of 2020 can get back their good standing for only P20,000.
MC 28 requires corporations to designate and submit official and alternative mobile phone numbers and email addresses for their transactions with the Commission.
Suspended or revoked corporations could also apply for the lifting of the order suspending or revoking their corporate registration by paying a petition fee of P3,060, and settling only 50% of their total assessed fines and penalties.
“The amnesty program in 2023 showed that companies and associations recognize the importance of maintaining their good standing for them to continue enjoying the benefits of a duly registered corporation,” SEC Chairperson Emilio B. Aquino said.
“Accordingly, the SEC wants to give non-compliant, suspended and revoked corporations, which are actually willing to comply with their reportorial requirements moving forward, the chance to settle their fines and penalties at lower rates, so that they may continue operating and contribute to a more robust and dynamic business sector,” he added.
Eligible corporations include stock and nonstock corporations, including branch offices, representative offices, regional headquarters, and regional operating headquarters of foreign companies.
Those whose securities are listed on the Philippine Stock Exchange (PSE); whose securities are registered but not listed on the PSE; considered as public companies; with intra-corporate dispute; with disputed GIS; with expired corporate term; and covered under Section 17.2 of Republic Act No. 8799, or the Securities Regulation Code are not eligible to apply for ECIP.
A corporation is considered non-compliant if it has not submitted its GIS and AFS intermittently or consecutively in previous years, and/or has not complied with MC 28.
Meanwhile, delinquent corporations are those that have not filed their AFS or GIS for three times, consecutively or intermittently, within a period of five years, as provided under SEC Memorandum Circular No. 19, Series of 2023.
Eligible corporations may apply for ECIP through their respective company accounts on the SEC Electronic Filing and Submission Tool (eFAST).
Corporations, which will not avail of ECIP, face higher penalties for noncompliance with their reportorial requirements, as provided under MC No. 6, Series of 2024. The updated scale of fines and penalties are at least 900% higher than the previous rates that had been in place for more than 22 years.
