Do You Need to File an Audited Financial Statement in 2025?
Quick Answer: If you’re a business owner in the Philippines, your filing obligations depend on the nature of your business, how you’re registered (SEC or BIR), and whether you’ve crossed certain financial thresholds.
In 2025, the Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR) have different sets of rules regarding who is required to file an Audited Financial Statement (AFS).
Who Is Required to Submit an AFS?
1. Corporations Registered with the SEC
Under SEC Memorandum Circular No. 1, Series of 2025 (SEC MC 01-2025):
- Stock and Non-Stock Corporations must file an AFS if they have:
- Total assets or total liabilities of ₱600,000 or more
- Branches, Representative Offices, and ROHQs of foreign corporations must file if their:
- Assigned capital or assets are ₱1,000,000 or more
Filing Deadlines:
- For corporations with December 31 year-end: File via SEC eFAST according to the last digit of registration number
- For non-December year-ends: File within 120 days after fiscal year-end
- Public and listed companies: File within 105 days after fiscal year-end
Important Note:
Partnerships are NOT required to file an AFS with the SEC as of 2025. Only corporations are covered under SEC MC 01-2025.
2. Sole Proprietors Registered with the BIR
Under BIR Revenue Regulations No. 11-2018 and related issuances:
- AFS is required if gross annual sales/receipts exceed ₱3,000,000 (the VAT threshold)
- Sole proprietors below the ₱3M threshold:
- Can submit unaudited financial statements
- Still required to maintain complete books of accounts
What Happens If You Don’t File When Required?
| Non-Compliance | Consequences |
| Not filing an AFS | Penalties from SEC or BIR |
| Late filing | Surcharges and fines |
| Using non-accredited CPAs | AFS may be rejected |
| No AFS when needed | Delayed bank loans, investor deals, or audits triggered |
FAQs: Filing Audited Financial Statements in the Philippines
Is an AFS required for small businesses?
➡ Only if you exceed the thresholds (₱600K for SEC-registered corporations, ₱3M gross for BIR-registered sole proprietors).
Are partnerships required to file with the SEC?
No. Partnerships are not covered by SEC MC 01-2025 and do not need to file AFS with the SEC.
Who can audit my FS?
➡ Only a CPA accredited by the BIR and the Board of Accountancy can sign your AFS.
Can I submit late?
➡ Yes, but expect penalties and processing delays.
Do online or home-based businesses need an AFS?
➡ If their sales exceed ₱3M (sole proprietors) or assets/liabilities exceed ₱600K (corporations), yes.
2025 AFS Filing Thresholds At a Glance
| Entity Type | Threshold | AFS Requirement |
| SEC-Registered Corporations | ₱600,000+ assets or liabilities | Required to file with SEC |
| Foreign Branches / ROHQ | ₱1,000,000+ assigned capital/assets | Required to file with SEC |
| Partnerships | ₱3,000,000+ gross sales/receipts | Required to file with BIR |
| Sole Proprietors (BIR) | ₱3,000,000+ gross sales/receipts | Required to file with BIR |
| Sole Proprietors (Below Threshold) | Below ₱3M | Unaudited FS allowed |
Common Mistakes to Avoid
| Mistake | Risk | How We Help |
| Filing unaudited FS when audited FS is required | SEC/BIR may reject your filing | We coordinate with accredited CPAs |
| Using non-accredited auditor | Invalid AFS | We match you with qualified professionals |
| Filing late | Penalties and surcharges | We manage deadlines for you |
| Misunderstanding filing obligations | Over- or under-compliance | We conduct a compliance review |
How UNA Tax and Accounting Services Can Help
As a compliance-focused audit and accounting firm in Pasig, we guide startups, SMEs, and corporations across the Philippines to file AFS and stay audit-ready.
We offer:
- AFS preparation and CPA coordination
- SEC and BIR filing support
- Annual tax and financial compliance review
- Catch-up bookkeeping and compliance clean-up
Contact us at sales@una-acctg.com to get started with your 2025 filing requirements.
Final Thoughts
Not all businesses are required to file audited financial statements—but knowing who is covered under the latest SEC and BIR rules is critical. Avoid penalties, delays, and compliance issues by getting it right from the start.
Need help determining if your business is required to file an AFS this 2025? Book a compliance consultation with UNA today.
