In the Philippines, the license for being a Certified Public Accountant (CPA) is governed by the Professional Regulation Commission (PRC). The PRC is the government body that oversees the issuance of all license certifications via licensure exams. The ID issued by the PRC is valid for three years.
The PRC also oversees the rules and stipulations for license renewal and maintenance. According to expert accounting services in the Philippines, all PRC licenses must be renewed before the expiration date. If you are a CPA who is looking out for the ways in which you can maintain and/or renew your certification, here is everything you need to know.
Online Renewal: Making it Easy for You
You would be happy to find out that since 2018, the PRC has made renewal possible via online portals. Tax services in Manila noted that most government offices are transitioning to digital to make it easier and more convenient for you to transact with them and fulfill all your obligations. The online system is available every day, 24 hours a day. This renewal system consists of two phases, the online application and the personal appearance for ID claiming.
Important Documents You Must Have on Hand
For the renewal of your CPA license, you will need to accomplish the following documents:
– A duly accomplished Application for Professional Identification Card (PIC)
– One recent 2 x 2 picture, digitized, of the applicant wearing formal attire, with a collar, and taken against a white background
– Payment for the renewal fee
– Earned Continuing Professional Development (CPD) units
Noteworthy, as of 2019, Newly licensed CPAs are not covered by the CPD requirement on their first renewal cycle, only on their second one and each renewal thereafter. That said, CPAs now only need to complete 15 CPD units for renewal. For CPAs seeking to get Board of Accountancy (BoA) accreditation, 120 units of CPD training is required.
Missing CPD Units? No Worries!
Also important to note is that until Dec 31 of 2023, the PRC will be accepting applications with incomplete CPD units, and will also credit units earned through informal learning, professional work experience, and self-directed learning.
– Informal learning covers learning activities at home that still qualify, such as reading books to learn leadership, management, and other relevant skills.
– Professional work experience pertains to activities conducted in the workplace related to your profession
– Self-directed learning pertains to all personal initiatives like volunteer engagements and may have been acquired through online training, seminars, and sponsored training programs that may still be awarded CPD units by the duly authorized CPD council.
Steps to Renewal of Your License
Here are the exact steps you must fulfill in order to renew your CPA license:
1. Ensure you have all the needed requirements
2. Go to the PRC website PRC-LERIS
3. Register your account on LERIS
4. Validate your account on LERIS
5. Sign in to your account
6. Fill out the personal information sheet
7. Upload your photo
8. Select the transaction for renewal
9. Set your appointment and claiming option and pay the indicated fees
10. Claim your renewed ID card
Importance of CPA License Renewal
Under Philippine laws, you will not be able to practice your profession with an expired license. Continuing your work with an expired license will result in legal punishment. Tax and accounting services in the Philippines noted that you must take this aspect seriously. The consequences of failing to renew and still practicing can be pretty harsh. You may be fined an amount ranging from P 10,000 to a maximum of P 40,000 or may be imprisoned from one to six years or both.
Maintaining Your License
A license is something hard-earned, from the multiple required years of education to the rigor of board exam preparations. That said, apart from acquiring your license, there are also requirements for maintaining it, and renewal is just one part of showing your professional commitment. Such includes abiding by the rules set in place by both the BoA and PRC.
The most basic and fundamental of these rules include the commitment to abide by all ethical guidelines set before the profession. Additionally, a CPA must religiously renew their license before expiry in order to practice legally in the Philippines. Also included are the requirements for continuing competency, like your CPDs.
If you find yourself in need of guidance during the CPA license renewal process, don’t hesitate to reach out to our expert accounting services in Pasig. Our knowledgeable pros are ready to assist you. Call us to help you navigate the renewal process seamlessly.