Philippines SEC suspends monthly penalty for late AFS and GIS filings.
The Securities and Exchange Commission (SEC) has suspended the monthly penalty charged for late or non-filing of annual financial statements (AFS) and the general information sheet (GIS), giving corporations with overdue filings a limited window to catch up at a lower cost. The relief applies to the compounding monthly component only. Base fines and filing deadlines remain in force, so businesses still need to act promptly to benefit from the suspension.
What this suspension covers
SEC Memorandum Circular No. 16, Series of 2026, took effect on 14 May 2026 and runs until 31 December 2026. It suspends the per-month-of-delay penalty imposed under SEC Memorandum Circular No. 6, Series of 2024, which previously added PHP 1,000 to a corporation’s fine for every month an AFS or GIS remained unfiled. The monthly penalty will resume automatically on 1 January 2027.
The suspension applies to all domestic corporations (stock, non-stock and one person corporations) and foreign corporations (stock and non-stock) under SEC jurisdiction. It also extends to corporations with pending monitoring assessments as at the effectivity date, and to those with final assessments that remain unsettled. The SEC’s Company Registration and Monitoring Department and its extension offices will issue updated assessments that exclude the monthly penalty component for these cases.
What remains unchanged
The base fine for late or non-filing under MC No. 6, Series of 2024 continues to apply in full. Filing obligations are also unaffected. Corporations still submit their AFS and GIS within the prescribed deadlines and the suspension does not extend those timelines in any way. Monthly penalties already assessed and settled before 14 May 2026 are final. The SEC has confirmed these amounts will not be refunded or credited, so the relief works prospectively.
Next steps for corporations with overdue filings
For corporations with overdue AFS or GIS filings, the remainder of 2026 is a materially cheaper window in which to settle outstanding compliance. Delaying beyond 31 December 2026 means the monthly penalty resumes and continuing gaps become more expensive again. Corporations with pending or unsettled assessments should also confirm that any updated computation issued by the SEC has correctly excluded the monthly component.
Businesses with layered or long-standing filing gaps, particularly those approaching delinquent status under the Revised Corporation Code, should treat this period as a priority to resolve rather than a reason to delay further. Speaking with a corporate compliance adviser can help confirm current filing status, quantify any exposure and settle outstanding obligations before the suspension ends.
