SEC extends deadline for amnesty applications anew, simplifies procedure

The Securities and Exchange Commission (SEC) has extended anew the deadline for amnesty applications for late and non-filing of annual financial statements (AFS), general information sheets (GIS), and official contact details.

The deadline for all amnesty applications is now set to September 30, as provided under SEC Memorandum Circular No. 9, Series of 2023, issued on June 30.

The Commission is also streamlining amnesty applications by adopting a Unified Amnesty Application Form, a web-based form available on the Electronic Filing and Submission Tool that will allow eligible companies to express their concurrence and/or consent to certain conditions of the amnesty process.

The Unified Amnesty Application Form replaces the notarized Expression of Interest Form and Amnesty Application Form previously required by the Commission.

Companies whose only violation is non-compliance with SEC Memorandum Circular No. 28, Series of 2020 should submit Annex D of the circular using the MC 28 Submission Portal. The applicant then has to accomplish the web-based form to signify intent to avail of the amnesty.

The SEC has likewise removed the option to file an undertaking to submit the latest due AFS within 90 days from amnesty application, as it is understood the AFS should be ready by September 30, consistent with the SEC and Bureau of Internal Revenue’s prescribed deadlines.

Corporations that are able to submit the correct reportorial requirements, including those reverted for compliance, within the submission period or until September 30 will be considered to have undergone the complete process and are entitled to receive a Confirmation of Payment (COP). Otherwise, the payment of amnesty fees will be forfeited.

The COP will be released within 15 working days from the date of complete submission of reportorial requirements.

Refunds of amnesty fees for non-compliant companies will not be accommodated. For suspended and revoked corporations, the petition fees cannot be refunded but it will be re-applied to the payment of the 50% assessed fees.

The SEC launched the grant of amnesty program for non-compliant and suspended or revoked corporations on March 15 through SEC Memorandum Circular No. 2, Series of 2023.

The initiative is part of the Commission’s efforts to encourage its regulated entities to comply with the reportorial requirements set under Republic Act No. 11232, or the Revised Corporation Code. It is also a means for the SEC to prudently identify active and inactive corporations, enhance and organize the Commission’s digital database, and cultivate a healthy and vibrant corporate sector.

The SEC will be implementing an updated scale of fines and penalties for late and non-filing of the covered reportorial requirements starting October 1.

To know more about the amnesty program, read SEC Memorandum Circular No. 2, Series of 2023 at www.sec.gov.ph/mc–2023/sec–mc–no–02–series–of–2023, or watch bit.ly/SECAmnestyProgram for an overview of the initiative.