Exposure Draft on the Revised Fines and Penalties on Submission of Reportorial Requirements (AFS & GIS)

2023 SEC NOTICE TO : All Concerned SUBJECT : Exposure Draft on the Revised Fines and Penalties on Submission of Reportorial Requirements (AFS & GIS) The public is advised that the Commission in its meeting on 25 April 2023 resolved to expose the draft Revised Scale of Fines and Penalties ("Revised Scale") related to submission of reportorial requirements such as the Audited Financial Statements (AFS) and General Information Sheet (GIS), as well as the penalty for non-compliance with Memorandum Circular (MC) No. 28, s. 2020 for comments and suggestions of all concerned parties. HTcADC The Commission on 15 March 2023, provided the grant of amnesty to non-compliant and suspended/revoked corporations through Memorandum Circular No. 2, s. 2023, which provided regulated entities opportunity to settle their fines and penalties at a reduced rate to encourage compliance with reportorial requirements. With the number of applications received and processed, the Commission saw the need to reevaluate its existing scale of fines and penalties upon a thorough review of all active regulated entities, to meaningfully deter violations and/or non-compliance with current regulations. Listed below are the revised scale of fines and penalties: I. Late and Non-Filing of AFS and GIS A. Domestic Corporations VIOLATIONS BRACKET IMPOSABLE FINES & PENALTIES-PER REPORT Late Filing of Reportorial Requirements (General Information Sheet, Audited Financial Statements, etc.) Based on Retained Earnings First Offense Second Offense Third Offense Fourth Offense Fifth Offense 1. Stock Corporations Negative Retained Earnings (Deficit) Php5,000 Php6,000 Php7,000 Php8,000 Php9,000 Plus Php500/month 1 for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php5,000 Php6,000 Php7,000 Php8,000 Php9,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php25,000 Php30,000 Php35,000 Php40,000 Php45,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month 2. Non-Stock Corporations Negative Fund Balance/Equity (Deficit) Php5,000 Php6,000 Php7,000 Php8,000 Php9,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php5,000 Php6,000 Php7,000 Php8,000 Php9,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php7,500 Php9,000 Php10,500 Php12,000 Php13,500 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php12,500 Php15,000 Php17,500 Php20,000 Php22,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Non-Filing of Reportorial Requirements (General Information Sheet, Audited Financial Statements, etc.) Based on Retained Earnings First Offense Second Offense Third Offense Fourth Offense Fifth Offense 1. Stock Corporations Negative Retained Earnings (Deficit) Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php25,000 Php30,000 Php35,000 Php40,000 Php45,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php30,000 Php36,000 Php42,000 Php48,000 Php54,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month 2. Non-Stock Corporations Negative Fund Balance/Equity (Deficit) Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php12,500 Php15,000 Php17,500 Php20,000 Php22,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php17,500 Php21,000 Php24,500 Php28,000 Php31,500 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month B. Foreign Corporations CAIHTE VIOLATIONS BRACKET IMPOSABLE FINES & PENALTIES-PER REPORT Late Filing 2 of Reportorial Requirements (General Information Sheet, Audited Financial Statements, etc.) Based on Accumulated Income (AI) First Offense Second Offense Third Offense Fourth Offense Fifth Offense 1. Stock Corporations (Branch, Representative Office, RHQ) Negative Accumulated Income (Deficit) Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php25,000 Php30,000 Php35,000 Php40,000 Php45,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php30,000 Php36,000 Php42,000 Php48,000 Php54,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month 2. Non-Stock (Branch, Representative Office, RHQ) Negative Accumulated Income (Deficit) Php5,000 Php6,000 Php7,000 Php8,000 Php9,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php5,000 Php6,000 Php7,000 Php8,000 Php9,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php25,000 Php30,000 Php35,000 Php40,000 Php45,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Non-Filing of Reportorial Requirements (General Information Sheet, Audited Financial Statements, etc.) Based on Accumulated Income (AI) First Offense Second Offense Third Offense Fourth Offense Fifth Offense 1. Stock Corporations (Branch, Representative Office, RHQ) Negative Accumulated Income (Deficit) Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php30,000 Php36,000 Php42,000 Php48,000 Php54,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php40,000 Php48,000 Php56,000 Php64,000 Php72,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php50,000 Php60,000 Php70,000 Php80,000 Php90,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month 2. Non-Stock Corporations Negative Accumulated Income (Deficit) Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php25,000 Php30,000 Php35,000 Php40,000 Php45,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php30,000 Php36,000 Php42,000 Php48,000 Php54,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month II. Non-Compliance with MC 28, s. 2020 VIOLATION IMPOSABLE FINES & PENALTIES Non-compliance with MC 28, s. 2020 Php20,000 Although the Commission imposes corresponding fines and penalties related to late and/or non-compliance with reportorial requirements, there is still a concern on repeated violations which reflects that the existing rates per scale of fines and penalties are not sufficient deterrent for corporations to violate the requirements. DETACa In revising the Scale of Fines on reportorial requirements, the Commission adopts the following changes: 1. Increase of twenty percent (20%) from the base penalty for each offense; 2. Monthly fine in the amount of One Thousand Pesos (Php1,000.00) in addition to the base penalty for continuing violation until the reportorial requirement is submitted; 3. The Commission may declare the corporation under delinquent status in case of failure to submit the reportorial requirements for three (3) times, consecutively or intermittently, within a period of 5 years; 4. The Commission may revoke the registration starting on the fourth offense; and 5. For foreign corporations, if the delay exceeds 30 days from the prescribed filing period, it shall be considered as non-compliance/non-filing. As to reportorial violation, it has been recognized that a distinction between "Non-filing" and "Late filing" should be made and the corresponding penalties be differentiated. "Non-filing of the report" should mean continuous failure to submit a report on due date and even after the next reporting deadline. "Late filing" should mean submission of the report after due date but still within the year of the prescribed deadline. Higher basic penalty and aggregate monthly fine (if applicable) should be imposed for non-submission of reports. Please submit duly signed written comments on the draft Circular and Revised Scale on or before 26 May 2023 to the following email addresses: [emailprotected] and [emailprotected] . ATTACHMENT Draft SEC MEMORANDUM CIRCULAR NO. _____ Series of 2023 TO : ALL CONCERNED SUBJECT : UPDATEDFINES AND PENALTIES ON THE LATE AND NON-SUBMISSION OF AUDITEDFINANCIAL STATEMENTS (AFS) and GENERAL INFORMATION SHEET (GIS) AND NON-COMPLIANCE WITH MC NO.28, s. 2020 WHEREAS, Section 179 (o) and (p) of Republic Act (RA) No.11232, otherwise known as the "Revised CorporationCode of the Philippines" (RCC), grants the Commission the power and authority to: (i) formulate and enforce standards, guidelines, policies, rules and regulations to carry out the provisions of the RCC; and (ii) exercise such other powers provided by law or those which may be necessary or incidental to carry out the powers expressly granted to it; HEITAD WHEREAS, the Commission on 15 March 2023, provided the grant of amnesty to non-compliant and suspended/revoked corporations through Memorandum Circular No.2, s. 2023, which provided regulated entities opportunity to settle their fines and penalties at a reduced rate to encourage compliance with reportorial requirements; WHEREAS, the Commission saw the need to reevaluate its existing scale of fines and penalties upon a thorough review of all active regulated entities, to meaningfully deter violations and/or non-compliance with current regulations; NOW THEREFORE, the Securities and Exchange Commission shall impose the following fines and penalties to regulated entities for failure to file the required reportorial requirements ( e.g. , AFS and GIS) and failure to comply with MC28, s. 2020: I. Late and Non-Filing of AFS and GIS A. Domestic Corporations VIOLATIONS BRACKET IMPOSABLE FINES & PENALTIES PER REPORT Late Filing of Reportorial Requirements (General Information Sheet, Audited Financial Statements, etc.) Based on Retained Earnings First Offense Second Offense Third Offense Fourth Offense Fifth Offense 1. Stock Corporations Negative Retained Earnings (Deficit) Php5,000 Php6,000 Php7,000 Php8,000 Php9,000 Plus Php500/month 1 for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php5,000 Php6,000 Php7,000 Php8,000 Php9,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php25,000 Php30,000 Php35,000 Php40,000 Php45,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month 2. Non-Stock Corporations Negative Fund Balance/Equity (Deficit) Php5,000 Php6,000 Php7,000 Php8,000 Php9,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php5,000 Php6,000 Php7,000 Php8,000 Php9,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php7,500 Php9,000 Php10,500 Php12,000 Php13,500 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php12,500 Php15,000 Php17,500 Php20,000 Php22,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Non-Filing of Reportorial Requirements (General Information Sheet, Audited Financial Statements, etc.) Based on Retained Earnings First Offense Second Offense Third Offense Fourth Offense Fifth Offense 1. Stock Corporations Negative Retained Earnings (Deficit) Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php25,000 Php30,000 Php35,000 Php40,000 Php45,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php30,000 Php36,000 Php42,000 Php48,000 Php54,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month 2. Non-Stock Corporations Negative Fund Balance/Equity (Deficit) Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php12,500 Php15,000 Php17,500 Php20,000 Php22,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php17,500 Php21,000 Php24,500 Php28,000 Php31,500 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month B. Foreign Corporations aDSIHc VIOLATIONS BRACKET IMPOSABLE FINES & PENALTIES-PER REPORT Late Filing 2 of Reportorial Requirements (General Information Sheet, Audited Financial Statements, etc.) Based on Accumulated Income (AI) First Offense Second Offense Third Offense Fourth Offense Fifth Offense 1. Stock Corporations (Branch, Representative Office, RHQ) Negative Accumulated Income (Deficit) Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php25,000 Php30,000 Php35,000 Php40,000 Php45,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php30,000 Php36,000 Php42,000 Php48,000 Php54,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month 2. Non-Stock (Branch, Representative Office, RHQ) Negative Accumulated Income (Deficit) Php5,000 Php6,000 Php7,000 Php8,000 Php9,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php5,000 Php6,000 Php7,000 Php8,000 Php9,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php25,000 Php30,000 Php35,000 Php40,000 Php45,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Non-Filing of Reportorial Requirements (General Information Sheet, Audited Financial Statements, etc.) Based on Accumulated Income (AI) First Offense Second Offense Third Offense Fourth Offense Fifth Offense 1. Stock Corporations (Branch, Representative Office, RHQ) Negative Accumulated Income (Deficit) Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php30,000 Php36,000 Php42,000 Php48,000 Php54,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php40,000 Php48,000 Php56,000 Php64,000 Php72,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php50,000 Php60,000 Php70,000 Php80,000 Php90,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month 3. Non-Stock Corporations Negative Accumulated Income (Deficit) Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php500/month for continuing violation Plus Php500/month Plus Php500/month Plus Php500/month Plus Php500/month Php0 to Php100,000 Php10,000 Php12,000 Php14,000 Php16,000 Php18,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php100,001 to Php500,000 Php15,000 Php18,000 Php21,000 Php24,000 Php27,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php500,001 to Php5,000,000 Php20,000 Php24,000 Php28,000 Php32,000 Php36,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Php5,000,001 to Php10,000,000 Php25,000 Php30,000 Php35,000 Php40,000 Php45,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Above Php10,000,000 Php30,000 Php36,000 Php42,000 Php48,000 Php54,000 Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month Plus Php1000/month II. Non-Compliance with MC 28, s. 2020 VIOLATION IMPOSABLE FINES & PENALTIES Non-compliance with MC dito 28, s. 2020 Php20,000 In addition to the monetary fines that will be imposed, the Commission may declare a corporation under delinquent status in case of failure to submit reportorial requirements for three (3) times consecutively of intermittently within five (5) years. Further, after a corporation is given reasonable notice regarding its delinquent status, a fourth offense may already constitute a revocation of its registration. ATICcS This Circular shall take effect immediately upon completion of its publication in a newspaper of general circulation. Done this ____ May 2023, Makati City, Philippines. For the Commission: EMILIO B. AQUINO Chairperson Footnotes 1. A fraction of a month shall be considered a whole month. Moreover, the monthly penalty shall start from the prescribed due date of the reportorial requirement submission. 2. If the delay for filing exceeds 30 days from the prescribed filing period, it shall be considered as non-compliance or non-filing. ATTACHMENT 1. A fraction of a month shall be considered a whole month. Moreover, the monthly penalty shall start from the prescribed due date of the reportorial requirement submission. 2. If the delay for filing exceeds 30 days from the prescribed filing period, it shall be considered as non-compliance or non-filing.