SEC hikes penalties for late, non-filing of corporate reports
FINES and penalties for late and non-filing of reportorial requirements will be increased starting April 1 as part of efforts to improve compliance, the Securities and Exchange Commission (SEC) said.
One-person corporations (OPCs) and domestic stock corporations with retained earnings of not more than P100,000 will now pay a basic penalty of P5,000 for the late filing of their general information sheet (GIS) or annual financial statements (AFS), with an additional P1,000 for every month of continuing violation, the SEC said in a memorandum.
The same penalty applies to domestic nonstock corporations with a fund balance or equity of not more than P100,000.
The non-filing of GIS and AFS by OPCs, domestic stock corporations, and nonstock corporations with retained earnings and fund balance of not more than P100,000 will entail a penalty of P10,000, with an additional P1,000 per month of continuing violation.
Foreign stock corporations with accumulated income/fund balance/members’ equity of less than P100,000 will now pay a P10,000 fine, and an additional P6,000 late penalty if their report is filed after 30 days, or an additional P12,000 penalty if filed after 60 days.
The base penalty for foreign nonstock corporations with less than P100,000 accumulated income/ fund balance/members’ equity is at P5,000, with an additional P6,000 penalty if filed beyond 30 days, or an additional P12,000 penalty if filed beyond 60 days.
The non-filing of reports by both foreign stock and nonstock corporations with accumulated income/ fund balance/members’ equity of less than P100,000 will entail a fine of P10,000, plus a penalty of P12,000.
The penalty for noncompliance with Memorandum Circular (MC) No. 28 has been increased to P20,000 from the previous rate of P10,000.
The submission of reportorial requirements is mandated under Republic Act No. 11232 or the Revised Corporation Code.
The filing of OPCs and stock or non-stock corporations is deemed late if a report is filed after the due date, but still within a year after the prescribed deadline for filing.
“If the report is filed more than one year from the prescribed period, the penalty shall be the base fine for non-filing, and the computation of the monthly penalty shall not exceed 12 months,” the SEC said.
“For stock and non-stock foreign corporations, late filing means a report was filed after 30 days from the anniversary date of the issuance of the SEC license for GIS or from the prescribed deadline for AFS,” it added. If a filing is made after 60 days, the fines will be based on the base fine of for non-filing and the computation of the monthly penalty shall not exceed 12 months.
The filing of the MC 28 report will be deemed late if it is done beyond 30 calendar days from the issuance of the certificate of registration, license, or authority for all types of corporations.