Taxation and Bookkeeping

Retainer-based tax and bookkeeping services are the most efficient way for businesses operating in the Philippines to ensure continuous, accurate, and on-time compliance with BIR obligations. Our retainer packages are structured around your company's actual transaction volume and revenue — so you only pay for what your business genuinely requires. Retainer services are available as standalone tax filing, standalone bookkeeping, or a fully integrated combined package.

Retainer fees are calibrated to your company's revenue, transaction volume, and operational status. Zero-filing retainers (for entities not yet generating transactions) start at a minimum monthly rate — ensuring you stay compliant even during pre-operational periods. All documents must be complete for the stated turnaround to apply.

• Tax Compliance & Filing

• Bookkeeping Services

• Bookkeeping + Tax Filing (Combined Package)

• NRDSP Tax Retainer

• Manual Writing of Books of Accounts

Philippine law requires corporations to submit Audited Financial Statements (AFS) to both the BIR and the SEC annually. The AFS must be prepared in accordance with Philippine Financial Reporting Standards (PFRS) and signed by an independent Certified Public Accountant (CPA). For foreign-owned businesses, accurately prepared financial statements are also critical for transfer pricing documentation, parent company reporting, and potential tax treaty compliance.

Annual AFS must be submitted to the BIR (via e-AFS) and the SEC (via eFAST) within prescribed deadlines based on your company's fiscal year-end. Late submission results in penalties. Lending companies are subject to more stringent financial reporting requirements, including minimum capital adequacy thresholds.

• Audit of Financial Statements & Income Tax Return (ITR)

• Preparation of Interim Financial Statements

• Interim Financial Statements — Lending Company

• Statement of Special Form of Financial Statements

• Trial Balance Preparation

Beyond initial BIR registration, businesses must enroll in the specific BIR digital systems that govern how they file, pay, and report taxes. The correct system depends on your company's annual gross sales, industry classification, and whether you are a VAT or non-VAT taxpayer. Enrolling in the wrong system — or failing to enroll at all — results in penalties and filing complications that are costly to correct after the fact.

Foreign digital service providers selling to Philippine customers are required to register with the BIR as a Non-Resident Digital Service Provider (NRDSP) and file quarterly VAT returns — regardless of whether the provider has a physical office in the Philippines. This is a compliance requirement under the Digital Services Tax Law.

• BIR Online Registration & Update System (ORUS) Application

• BIR eFPS (Electronic Filing & Payment System) Registration

• BIR Loose-Leaf Books of Accounts Registration

• BIR Computerized Accounting System (CAS) Application

• BIR NRDSP (Non-Resident Digital Service Provider) Registration

• Point-of-Sale (POS) System Registration

• BIR eAFS (Electronic Audited Financial Statements) Enrollment

Every Philippine employer is required to complete the annual tax reconciliation process for all employees — computing their final income tax liability for the year and issuing the corresponding BIR certificates of tax withheld. The Alphalist of Employees must be submitted to the BIR electronically, and BIR Form 2316 must be issued to each employee by January 31 of the following year. Errors in annualization are a common trigger for BIR audit assessments against the employer.

BIR Form 2316 must be provided to every employee on or before January 31 following the close of the calendar year. Employees who receive only compensation income and whose tax has been correctly withheld at source are not required to file individual income tax returns — BIR Form 2316 serves as their substitute return.

• Annualization of Salaries & Preparation of Alphalist of Employees (BIR Form 1604-C)

• Preparation of BIR Form 2316 (Certificate of Compensation Payment / Tax Withheld)

• Preparation of BIR Form 2307 (Certificate of Creditable Tax Withheld at Source)

A BIR Letter of Authority (LOA) initiates a formal tax audit of your books and records for one or more tax types and periods. The BIR has the authority to audit returns for up to three years from the filing date — or ten years in cases involving fraud or non-filing. Upon receipt of an LOA, the clock starts immediately. Prompt, strategic, and technically sound response is critical to minimizing deficiency tax assessments, surcharges, and compromise penalties.

BIR tax audits carry strict response deadlines — typically 30 days from receipt of a Preliminary Assessment Notice (PAN) and 30 days from receipt of a Formal Assessment Notice (FAN). Missing these deadlines results in the assessment becoming final and unappealable. Contact our team immediately upon receipt of any BIR audit notice.

• Tax Audit Investigation Assistance (LOA response, documentation, assessment review)

• Submission of Response Letter — Mission Order

• Submission of Response Letter — Tax Mapping

• Closure / Inquiry of Open BIR Cases

The Philippines has entered into bilateral tax treaties with over 40 countries — including the United States, Japan, China, Singapore, the United Kingdom, Germany, and Australia — which provide for reduced withholding tax rates on dividends, interest, royalties, and other cross-border income payments. Foreign corporations and non-resident entities receiving income from Philippine sources may apply for Tax Treaty Relief to avail of these reduced rates instead of the standard Philippine withholding tax rates.

BIR processing of TTRA applications is lengthy, but treaty relief can be applied provisionally while the application is pending — subject to proper documentation and filing. Foreign investors receiving dividends, interest, or royalties from their Philippine entity should engage our team early to ensure treaty relief is properly documented and applied from the first payment.

• Tax Treaty Relief Application (TTRA) — filing and BIR confirmation processing

Beyond recurring compliance and audit defense, businesses frequently require specialized one-time tax services — from securing tax clearance certificates for bidding and government contracts, to filing VAT refund claims for excess input taxes, to obtaining BIR rulings on novel or complex tax positions. We handle all of these on demand, with the same level of precision and documentation discipline applied to our retainer engagements.

The Tax Clearance Certificate is a mandatory requirement for businesses participating in government bidding and procurement. It must be secured from the BIR and renewed regularly. Tax Due Diligence is strongly recommended for foreign investors acquiring or partnering with an existing Philippine company — it surfaces hidden BIR liabilities before a transaction is completed.

• Tax Exemption Certificate Application

• Tax Clearance Certificate

• Application for VAT Refund

• BIR Ruling Application

• Tax Due Diligence

• Submission of Inventory List

• Authority to Print (ATP) — Subsequent Registration

• BIR Sworn Statement / Declaration

• Books of Accounts — Additional Registration

• Submission of AFS to SEC (via eFAST / Online)

• Submission of AFS to BIR (via e-AFS)

• Retrieval of e-AFS Records

Philippine businesses are required to file a specific set of BIR tax returns on a monthly, quarterly, and annual basis — depending on the tax types enrolled under their BIR Certificate of Registration (COR). Below is a complete reference of all BIR return forms that Starlight manages on behalf of its clients as part of retainer tax compliance services.

Not all forms apply to every business. The specific returns your company is required to file are determined by the tax types enrolled under your BIR Certificate of Registration (COR). Our team reviews your COR upon engagement and builds a complete, personalized tax compliance calendar covering every applicable deadline.

• BIR Form 1600-VT Withholding VAT — monthly
• BIR Form 1601-C Withholding Tax on Compensation — monthly
• BIR Form 1601-EQ Expanded Withholding Tax — quarterly
• BIR Form 1601-FQ Final Withholding Tax — quarterly
• BIR Form 1604-C Annual Alphalist of Employees
• BIR Form 1604-E Annual Alphalist of Payees (EWT)
• BIR Form 1702 / 1702-RT Annual Corporate Income Tax Return
• BIR Form 1702-Q Quarterly Corporate Income Tax Return
• BIR Form 1701-Q / 1701A Quarterly / Annual Individual Income Tax
• BIR Form 2000 Documentary Stamp Tax — monthly
• BIR Form 2000 (DST on Lease) Documentary Stamp Tax on Lease contracts
• BIR Form 2000 (DST on Shares) Documentary Stamp Tax on Share transfers
• BIR Form 2550Q Quarterly VAT Return
• BIR Form 2551Q Quarterly Percentage Tax Return
• BIR Form 0605 Payment Form — miscellaneous tax payments
• BIR Form 0619-E Monthly EWT remittance return
• BIR Form 0619-F Monthly FWT remittance return
• BIR Form 0601-F Monthly FWT payment form