Year-End Tax Compliance Checklist for Philippine Businesses: December 2026 to February 2027
From December 2026 to early February 2027, a Philippine business has four groups of year-end tasks: December 31 cut-offs (e-invoicing, withholding tax on invoices, and the SEC's late-filing relief), January book and permit deadlines, fourth-quarter and annual withholding returns, and preparation for the April 15, 2027 income tax return. This checklist lists each task with its date. Start in December. Most penalties come from tasks left for the last week of January.
What must be done by December 31, 2026?
E-invoicing. Covered businesses must be able to issue electronic invoices by Thursday, December 31 (Revenue Regulations (RR) No. 11-2025, as amended by RR No. 26-2025). See who must comply.
Withholding tax on invoices. Systems of businesses under mandatory e-invoicing must show creditable withholding tax on invoices by December 31. Other systems, such as POS and cash registers outside the mandate, have until March 31, 2027 (RR No. 6-2026; RMC No. 112-2026). See how to show CWT on invoices.
Late SEC reports. Until December 31, 2026, the SEC is not charging its monthly add-on fine for late reports. Base fines still apply (SEC MC No. 16, s. 2026). File overdue reports now. See late GIS filing.
December returns. Monthly withholding returns for November are due Thursday, December 10. eFPS filers pay by Tuesday, December 15.
Year-end count. Count your inventory on or near December 31 and keep the count sheets. You will need them for the inventory list and for your auditor.
What is due in January 2027?
January 11: percentage and VAT withholding returns (1600-PT and 1600-VT) for December.
January 15: withholding tax on compensation (1601-C) for December. Loose-leaf books for 2026 must be bound and registered online through ORUS. See our books of accounts guide.
January 20: give BIR Form 2307 for October to December to your payees. Renew your business permit and pay local business tax. Most cities and municipalities require this within the first 20 days of January (Section 165, Local Government Code). See our business permit guide.
January 25: quarterly VAT and percentage tax returns (2550Q and 2551Q) for October to December.
January 29: submit the inventory list and register computerized books through ORUS. The due date is Saturday, January 30, so file by Friday. Also give BIR Form 2316 to employees by Friday, since January 31 is a Sunday.
January 29: if your corporation held no annual meeting, file the General Information Sheet (GIS). The due date, January 30, is a Saturday. See our GIS guide.
What is due in February and March 2027?
February 1: quarterly withholding returns (1601-EQ, 1601-FQ, 1602Q and 1603Q) for October to December, and the annual returns 1604-C and 1604-F with their alphalists for 2026.
February 26: submit duplicate copies of BIR Form 2316 for employe
Under substituted filing. The due date, February 28, is a Sunday.
March 1: annual return 1604-E with the alphalist of payees for 2026.
What should you prepare now for April 15, 2027?
The annual income tax return for 2026 is due Thursday, April 15, 2027.
Close your books early. Reconcile bank accounts, receivables, payables and inventory by mid-January.
Match sales and withholding. Check that your sales per books agree with your VAT or percentage tax returns, and that every BIR Form 2307 you will claim is on hand.
Book the auditor. An audit is required if gross annual sales or receipts exceed ₱3 million (Section 232(A), Tax Code), or if total assets or total liabilities exceed ₱3 million for SEC purposes (SEC MC No. 4, s. 2026). See our AFS guide.
Review related-party transactions and the documents that support them.
Check unremitted withholding taxes. Settle them before an audit finds them. See unremitted withholding taxes.
Frequently asked questions
What if I miss a BIR deadline?
Expect a 25% surcharge, 12% interest a year and a compromise penalty. Micro and small taxpayers pay a 10% surcharge and 6% interest. See what happens if you miss a BIR deadline.
Will the BIR extend these deadlines?
Do not plan around it. Extensions in 2026 came late and often covered only some areas.
Where is the full list of dates?
See our 2026 to 2027 compliance calendar.
Sources
National Internal Revenue Code of 1997, as amended, Section 232(A)
Revenue Regulations No. 11-2025, as amended by Revenue Regulations No. 26-2025
Revenue Regulations No. 6-2026; Revenue Memorandum Circular No. 112-2026
Revenue Memorandum Circular No. 3-2023; Revenue Memorandum Circular No. 4-2026
Local Government Code, Section 165
SEC Memorandum Circular Nos. 4, 9 and 16, Series of 2026 (Securities and Exchange Commission)
Facing a BIR audit, assessment or tax dispute?
Aureada CPA Law Firm's CPA-lawyers handle BIR audits, assessment protests, refund claims and Court of Tax Appeals cases from our Makati and Lucena offices. See our tax services.
You can also email info@aureadalaw.com or call (02) 8812-9990.
Related guides
This article is general information as of its publication date, not legal advice, and does not create a lawyer-client relationship. For advice on your situation, consult a lawyer.
Comments