2021 Year-End Compliance Reminders

2021 is ending and a new year 2022 will be coming soon.

Most are either busy preparing for Christmas and New Year’s Celebration or are taking this time off to relax and spend quality time with loved ones.

This season is a perfect time to reflect on the events of the year that have passed (2021), and at the same time, look forward with hope of the coming new year (2022).

As we do our new year’s resolutions for the year 2022, let us also take this time to think of the upcoming year end compliance that businesses and self-employed must do this coming year of 2022.

1. Renewal of Business Permit in Local Government Units (LGU) such as Barangay and Mayor’s Office

Every year, those who are engaged in doing business, we must submit application for renewal of our business permits and licenses to the Barangay and Municipal where our business is located.

It may also include renewal of other incidental permits such as Fire Permit, Occupational Permit, Locational, and others.

The deadline for the renewal of business permit is on or before January 20, 2022

2. Payment on Renewal of Occupational Tax Receipt (OTR) or Professional Tax Receipt (PTR)

If business permits and licenses are for doing business, occupational tax receipt or professional tax receipt, on the other hand, are for freelancers or self-employed.

Although not needed in the revised requirements in registering with the Bureau of Internal Revenue (BIR), but if you’ve or done this in the past, better continue doing so.

The deadline is on it before January 31, 2022, in general, or you may coordinate with your mayor’s office for more accurate deadline.

3. Payment of BIR Form 0605 – Annual Registration Fee

This is a form of renewal of your registration in the Bureau of Internal Revenue (BIR) that is due on or before January 31, 2022

For a guide on how to do this form, click here.

4. Submission for Stamping of Looseleaf Books of Accounts

For those with Permit to Use (PTU) Looseleaf Books of Accounts, you must have your journals and ledgers, of previous calendar year 2021, printed and book-bounded then submit for stamping in your BIR RDO on or before January 15, 2022

5. Submission of soft-copy Computerized Books of Account (CBA), Computerized Accounting Software (CAS) and Other Accounting Records

For those with BIR registered or acknowledged Computerized Books of Account (CBA), Computerized Accounting Software (CAS) and Other Accounting Records, you must submit soft-copy files of your journals and ledgers, of previous calendar year 2021, saved in a readable device such as USB, CDR, DVDR on or before January 30, 2022

6. Submission of Notarized Income Payee’s Sworn Declaration of Gross Receipts/Sales with required attachments of Individuals to the Payee or Withholding Agent

Individual of whom annual sales is not exceeding P3,000,000, and non-individual of whom annual sales is not exceeding P720,000, must submit a notarized sworn statement on or before January 15, 2022

7. Submission of Inventory and/or Accounts Receivable List

Business that maintains inventory and belongs to certain industries such as Retailing, Wholesaling, Merchandising, Manufacturing, Real Estate and Certain Services Business such construction or contractors must submit an inventory and/or accounts receivable list for Calendar Year 2021 on or before January 30, 2022

8. Submission of Notarized Income Payor/Withholding Agent’s Sworn Declaration with List of Payees

This applies to business or self-employed who acts as withholding agent of the BIR.

All sworn statements received from vendors (payees) must be listed in a notarized sworn statement and submit copies to BIR on or before January 31, 2022

9. BIR Form 1604C and 1604F including Attachments

For business or self-employed with employees, you must submit BIR Form 1604C Annual Information Return of Income Taxes Withheld on Compensation and Alphalist of Employees for the Calendar Year 2021 on or before January 31, 2022

For automated payroll computation and preparation of BIR Form 1604C including Alphalist of Payees, you may want to try MPM Payroll Software for 30 days free trial, click here.

If applicable, BIR Form 1604F Annual Information Return of Income Payments Subjected to Final Withholding Taxes and Alphalist of Payee is also due on or before January 31, 2022

For automated bookkeeping and tax filing, you may want to try MPM Accounting Software for 30 days free trial, click here.

10. Distribution of BIR Form 2316

For business or self-employed with employees, you must provide a copy of BIR Form 2316 Certificate of Compensation Payment/Tax Withheld for Calendar Year 2021 to all your employees and get a duplicate signed receiving copy on or before January 31, 2022

For automated payroll computation and preparation of BIR Form 2316, you may want to try MPM Payroll Software for 30 days free trial, click here.

11. Submission of BIR Form 2316 for Employees Covered by Substituted Filing

For business or self-employed with employees, and of which certain employees are qualified to substituted filing for Calendar Year 2021, you must submit a notarized list and copy of signed BIR Form 2316 to BIR on or before February 28, 2022

12. Submission of BIR Form 1604E and attachment

This applies to business or self-employed who acts as withholding agent of the BIR.

Submit BIR Form 1604E Annual Information Return of Creditable Income Taxes Withheld (Expanded) and Alphalist of Payees, for Calendar Year 2021, on or before March 1, 2022

For automated bookkeeping and tax filing, you may want to try MPM Accounting Software for 30 days free trial, click here.

13. Submission of Annual Income Tax Return (ITR) and Annual Audited Financial Statement (AFS), if applicable 

All business, self-employed and mixed income earners must submit Annual Income Tax Returns (ITR) and Audited Financial Statements (AFS), if applicable, for Calendar Year 2021, on or before April 15, 2022

14. Submission of Audited Financial Statement (AFS) to the Securities and Exchange Commission (SEC)

This applies to Corporation or Partnership but not to sole proprietors.

In general, all corporation/partnership must submit Audited Financial Statement (AFS) to the Securities and Exchange Commission (SEC) for the Calendar Year 2021.

Every year, SEC announce a deadline based on SEC Registration Numbers. But you can submit early before April 15.

15. Submission of General Information Sheet (GIS) and General Form for Financial Statement (GFFS) to Securities and Exchange Commission (SEC)

All corporation must submit General Information Sheet (GIS) to the SEC 30 days after the annual meeting date, in general.

On the other hand, all covered corporations or partnerships must submit General Form for Financial Statement (GFFS) to the SEC 30 days after the deadline for submission of Audited Financial Statement.

There can be additional year-end compliances depending on your industry and size of the company. The above enumerated are the most common you need to know and comply with, as applicable.

I hope this article has been useful for you. Feel free to leave a comment and share this article.