Tax Alert No. 30 [Securities and Exchange Commission Memorandum Circular No. 16, Series of 2026 dated 13 May 2026]

The Securities and Exchange Commission (SEC) has issued Memorandum Circular (MC) No. 16, series of 2026, which suspends the monthly penalty for late and non-filing of reportorial requirements.

The Circular took effect immediately upon publication on 14 May 2026.

Set out below are the key provisions of the MC:

1. Temporary suspension of monthly penalties
   • Under this MC, the monthly rate of penalty shall not be imposed from 14 May 2026 until 31 December 2026.
   • Imposition of per-month delay penalties will resume on 1 January 2027.
2. Scope and Duration of the Suspension
   • The suspension applies to the following reports:
     • Annual Financial Statements (AFS)
     • General Information Sheet (GIS)
   • It covers the following corporations:
     • Domestic (stock, non-stock, and one person corporations)
     • Foreign (stock and non-stock) under the SEC’s jurisdiction
   • The suspension also extends to:
     • Corporations with pending monitoring assessments as of the effectivity date; and
     • Corporations with final assessments that remain unsettled. The SEC’s Company Registration and Monitoring Department (CRMD) and Extension Offices (EOs) will issue updated assessments excluding the per-month delay penalty component.
3. Matters unaffected by the Suspension of the Monthly Penalties
   • The per-month delay penalties that have already been assessed and settled prior to 14 May 2026 shall remain final and are not subject to refund or credit;
   • The basic fines for late or non-filing under SEC MC No. 06, Series of 2024 continue to apply; and
   • The suspension does not relieve corporations from their obligation to file AFS and GIS within the prescribed deadlines. All entities must continue to comply with reportorial requirements in accordance with existing laws and regulations.

You may access the full text of SEC MC 16, series of 2026 through the SEC website.

For any inquiries or assistance, please feel free to reach out to our Tax Services team or connect with us through this link: www.pwc.com/ph/en/about-us/contact-us.html