The transition into a new calendar year is often met with a romanticized view of progress—a "fresh start" for Philippine enterprises. However, beneath the surface of new ventures lies the rigid reality of the Philippine regulatory system. For the modern entrepreneur, January is not merely a month of planning, but a critical defensive window where administrative diligence separates a thriving entity from one burdened by systemic penalties.
In the Philippines, the political and legal systems impose circumstances that make it difficult for businesses to recover once a violation is flagged. The "Renewal Season" is a high-stakes period governed by multiple government agencies, each with non-negotiable thresholds. Understanding these is the first step in ensuring that your organization is not reaping the consequences of avoidable oversight.
January 15: Corporate Transparency and Financial Record-Keeping
The mid-month deadline represents two distinct but equally vital pillars of corporate governance: human capital and financial transparency.
13th Month Pay Report: Pursuant to Section 8 of the Rules and Regulations Implementing P.D. No. 851 and Labor Advisory No. 16, Series of 2025, all covered employers must formally submit a report of compliance to the nearest DOLE Regional Office via the Establishment Report System (ERS).
Registration of Books: In accordance with Revenue Regulations (RR) No. 17-2011, taxpayers authorized to use loose-leaf books of accounts must submit their permanently bound records for the preceding taxable year for internal revenue stamping. While Republic Act No. 11976 (Ease of Paying Taxes Act) aims to modernize tax administration by simplifying registration processes, it does not absolve businesses from these specific binding and stamping requirements for the 2025 records.
January 20: Local Government Units (LGU)
The most time-sensitive requirement is the renewal of the Mayor’s Business Permit. Under the Local Government Code of 1991 (R.A. 7160), all businesses must renew their permits and pay local business taxes (LBT) within the first 20 days of the year. The system is designed to be unforgiving; missing this deadline triggers an automatic 25% surcharge on the tax due, plus a 2% monthly interest.
January 30 & 31: Final Technical Checkpoints
As the month concludes, the focus shifts to internal revenue reporting. These filings are critical for maintaining a "Good Standing" status with the Bureau of Internal Revenue (BIR).
Annual Inventory List (Jan 30): For businesses operating under a calendar year, Section 13 of Revenue Regulations No. V-1 (Bookkeeping Regulations) and RMC No. 57-2015 mandate that taxpayers maintaining stocks-in-trade, raw materials, or supplies must submit a detailed inventory list. Per RMC No. 8-2023, these submissions must be made in the prescribed digital format accompanied by a notarized Sworn Declaration.
Annual Information Return (Jan 31): Under the National Internal Revenue Code and RR No. 2-98, all withholding agents must file BIR Form 1604-C (Annual Information Return of Income Taxes Withheld on Compensation) to report total compensation paid and taxes withheld for the year 2025.
The Annual Alphalist (Jan 31): In line with RR No. 1-2014, employers are required to submit a comprehensive Alphabetical List of Employees (Alphalist) as a mandatory attachment to Form 1604-C. This digital submission must follow the latest format prescribed in RMC No. 15-2025 to ensure your remittances align with individual tax liabilities.
Navigating the Philippine regulatory landscape requires more than just administrative effort; it demands a strategic rejection of late-stage compliance. In a system where bureaucratic complexity often obscures the path to legal standing, De Castro Law Firm remains focused on providing the clarity necessary to mitigate risk and protect operations. We do not view compliance as a milestone of progress, but as a foundational defense against the systemic consequences of oversight.
Secure your business's future by scheduling a professional compliance consultation today through our website at www.decastrolegalfirm.com.
References
Bureau of Internal Revenue. (2025). Revenue Memorandum Circular No. 110-2025: 2026 Interactive Tax Calendar. Retrieved from https://www.bir.gov.ph
Bureau of Internal Revenue. (2024). Republic Act No. 11976: Ease of Paying Taxes (EOPT) Act. Retrieved from https://www.bir.gov.ph
Department of Labor and Employment. (2025). Labor Advisory No. 16, Series of 2025: 13th Month Pay Compliance Reporting. Retrieved from https://www.dole.gov.ph
Official Gazette of the Republic of the Philippines. (1991). Republic Act No. 7160: The Local Government Code of 1991. Retrieved from https://www.officialgazette.gov.ph
Philippine Congress. (1975). Presidential Decree No. 851: Requiring All Employers to Pay Their Employees a 13th Month Pay. Retrieved from https://www.officialgazette.gov.ph
