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Audit approach overview
Our audit approach will allow our client's accounting personnel to make the maximum contribution to the audit effort without compromising their ongoing responsibilities
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Annual and short period audit
At P&A Grant Thornton, we provide annual and short period financial statement audit services that go beyond the normal expectations of our clients. We believe strongly that our best work comes from combining outstanding technical expertise, knowledge and ability with exceptional client-focused service.
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Review engagement
A review involves limited investigation with a narrower scope than an audit, and is undertaken for the purpose of providing limited assurance that the management’s representations are in accordance with identified financial reporting standards. Our professionals recognize that in order to conduct a quality financial statement review, it is important to look beyond the accounting entries to the underlying activities and operations that give rise to them.
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Other Related Services
We make it a point to keep our clients abreast of the developments and updates relating to the growing complexities in the accounting world. We offer seminars and trainings on audit- and tax-related matters, such as updates on Accounting Standards, new pronouncements and Bureau of Internal Revenue (BIR) issuances, as well as other developments that affect our clients’ businesses.
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Tax advisory
With our knowledge of tax laws and audit procedures, we help safeguard the substantive and procedural rights of taxpayers and prevent unwarranted assessments.
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Tax compliance
We aim to minimize the impact of taxation, enabling you to maximize your potential savings and to expand your business.
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Corporate services
For clients that want to do business in the Philippines, we assist in determining the appropriate and tax-efficient operating business or investment vehicle and structure to address the objectives of the investor, as well as related incorporation issues.
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Tax education and advocacy
Our advocacy work focuses on clarifying the interpretation of laws and regulations, suggesting measures to increasingly ease tax compliance, and protecting taxpayer’s rights.
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Business risk services
Our business risk services cover a wide range of solutions that assist you in identifying, addressing and monitoring risks in your business. Such solutions include external quality assessments of your Internal Audit activities' conformance with standards as well as evaluating its readiness for such an external assessment.
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Business consulting services
Our business consulting services are aimed at addressing concerns in your operations, processes and systems. Using our extensive knowledge of various industries, we can take a close look at your business processes as we create solutions that can help you mitigate risks to meet your objectives, promote efficiency, and beef up controls.
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Transaction services
Transaction advisory includes all of our services specifically directed at assisting in investment, mergers and acquisitions, and financing transactions between and among businesses, lenders and governments. Such services include, among others, due diligence reviews, project feasibility studies, financial modelling, model audits and valuation.
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Forensic advisory
Our forensic advisory services include assessing your vulnerability to fraud and identifying fraud risk factors, and recommending practical solutions to eliminate the gaps. We also provide investigative services to detect and quantify fraud and corruption and to trace assets and data that may have been lost in a fraud event.
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Cyber advisory
Our focus is to help you identify and manage the cyber risks you might be facing within your organization. Our team can provide detailed, actionable insight that incorporates industry best practices and standards to strengthen your cybersecurity position and help you make informed decisions.
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ProActive Hotline
Providing support in preventing and detecting fraud by creating a safe and secure whistleblowing system to promote integrity and honesty in the organisation.
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Accounting services
At P&A Grant Thornton, we handle accounting services for several companies from a wide range of industries. Our approach is highly flexible. You may opt to outsource all your accounting functions, or pass on to us choice activities.
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Staff augmentation services
We offer Staff Augmentation services where our staff, under the direction and supervision of the company’s officers, perform accounting and accounting-related work.
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Payroll Processing
Payroll processing services are provided by P&A Grant Thornton Outsourcing Inc. More and more companies are beginning to realize the benefits of outsourcing their noncore activities, and the first to be outsourced is usually the payroll function. Payroll is easy to carve out from the rest of the business since it is usually independent of the other activities or functions within the Accounting Department.
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Our values
Grant Thornton prides itself on being a values-driven organisation and we have more than 38,500 people in over 130 countries who are passionately committed to these values.
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Global culture
Our people tell us that our global culture is one of the biggest attractions of a career with Grant Thornton.
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Learning & development
At Grant Thornton we believe learning and development opportunities allow you to perform at your best every day. And when you are at your best, we are the best at serving our clients
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Global talent mobility
One of the biggest attractions of a career with Grant Thornton is the opportunity to work on cross-border projects all over the world.
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Diversity
Diversity helps us meet the demands of a changing world. We value the fact that our people come from all walks of life and that this diversity of experience and perspective makes our organisation stronger as a result.
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In the community
Many Grant Thornton member firms provide a range of inspirational and generous services to the communities they serve.
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Behind the Numbers: People of P&A Grant Thornton
Discover the inspiring stories of the individuals who make up our vibrant community. From seasoned veterans to fresh faces, the Purple Tribe is a diverse team united by a shared passion.
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Fresh Graduates
Fresh Graduates
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Students
Whether you are starting your career as a graduate or school leaver, P&A Grant Thornton can give you a flying start. We are ambitious. Take the fact that we’re the world’s fastest-growing global accountancy organisation. For our people, that means access to a global organisation and the chance to collaborate with more than 40,000 colleagues around the world. And potentially work in different countries and experience other cultures.
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Experienced hires
P&A Grant Thornton offers something you can't find anywhere else. This is the opportunity to develop your ideas and thinking while having your efforts recognised from day one. We value the skills and knowledge you bring to Grant Thornton as an experienced professional and look forward to supporting you as you grow you career with our organisation.
Clarifications on the revised guidelines and procedures for availing tax treaty benefits
(Revenue Memorandum Circular No. 77-2021 issued on June 15, 2021)
This Tax Alert is issued to inform all concerned taxpayers on the significant clarifications on the revised guidelines and procedures for availing tax treaty benefits provided under Revenue Memorandum Order (RMO) No. 14-2021.
Under RMO No. 14-2021, a request for confirmation or tax treaty relief application shall apply to all income derived by nonresidents from Philippine sources that may be entitled to relief from double taxation under relevant tax treaties. The submission of Certificate of Residence for Treaty Relief (CORTT) Form for dividends, interest and royalties shall be discontinued.
Availment of treaty benefits
1. If the nonresident submitted to the income payor a Tax Residency Certificate (TRC) and the appropriate BIR Form No. 0901 prior to the payment of income, the income payor may apply the provisions of the applicable treaty, provided that all the conditions for the availment thereof under the treaty have been satisfied. Otherwise, the regular rates imposed under the Tax Code should be applied by the withholding agent.
2. If the nonresident’s income was not subjected to tax in the Philippines pursuant to the tax treaty, the withholding agent/income payor shall file with ITAD a request for confirmation that the tax treatment of such income was proper.
Filing of Request for Confirmation (RFC) by income payor or TTRA by the non-resident income payee
1. The income payor should file the RFC. However, the income payor is not prevented from authorizing the non-resident or any other person to file the RFC on its behalf, provided the latter is equipped with a Special Power of Attorney (SPA).
2. The RFC, with complete documentary requirements, shall be filed on or before the dates prescribed below:
3. One consolidated RFC per nonresident income recipient, regardless of the number and type of income payments made during the year, shall be filed.
4. For long-term contracts involving the payment of interests and royalties and other types of income where the condition for entitlement to treaty benefits is not dependent on time threshold, annual updating is not mandatory. However, the withholding agent should ensure that the nonresident continues to be a resident of the same country for the whole duration of the contract by requiring the nonresident an updated TRC.
5. If there would be material changes in the facts or circumstances upon which the previous ruling was based in the succeeding year, an RFC shall again be filed by the withholding agent.
6. In the case of long-term contract of services where the existence of a permanent establishment (PE) in the Philippines is dependent on time threshold, the annual updating is mandatory.
7. If the RFC or TTRA is approved, the BIR will issue a Certificate of Entitlement (COE) instead of the usual BIR Ruling. The COE will still contain the material facts of the case and a ruling confirming the nonresident's entitlement to treaty benefit.
Documentary requirements
1. The general requirements as provided under RMO 14-2021 shall be submitted only whenever applicable. Thus, if an expense has not yet been paid but has already been accrued in the books of the withholding agent, the proof of remittance is apparently not required to be submitted.
2. Non-residents need not re-submit a TRC to the income payor each time an income is earned. Only one original and authenticated TRC shall be submitted per year.
Alternatively, a certified true copy of the original may be submitted to other payors of income if the original copy is no longer available, with a notation as to whom the original copy was previously submitted.
The same rule also applies to the proof of establishment or incorporation, Certificate of Non-Registration or License to Do Business in the Philippines duly issued by the SEC, and Certificate of Business Registration/ Presence duly issued by the DTI.
3. All filers, other than the nonresident income recipient or withholding agent, shall present a notarized SPA when filing an application with ITAD.
4. To prove that an income is not effectively connected with a PE, if any in the Philippines, the foreign enterprise may submit the audited financial statements of the PE. If the same is not yet available at the time of filing, it may submit a Sworn Certification signed by a principal officer of the PE, which shall contain material facts that may lead the BIR to believe that the income is not effectively connected with the PE and that the PE is not material to the realization of such income.
5. For capital gains, an audited interim FS shall be used to compute the real property interest of the issuing domestic corporation at the time of the transaction. In the alternative, the following may be submitted: 1) unaudited interim FS; and 2) lapsing schedule as of the date of transfer or alienation of property.
6. For dividends, a certified true copy of the AFS as of the taxable year immediately preceding the date of declaration, which was duly filed with the BIR and SEC, shall accompany the application for RFC or TTRA.
7. The following documents are also required for redemption or buy-back of common shares: 1) notarized Board of Directors' resolution authorizing the redemption or buy-back of shares; and 2) Articles of Incorporation and By-Laws of the issuing corporation.
8. When the tax authority of the United States of America (US) confirms that a trust arrangement is fiscally transparent and that the income of such trust is attributed to the beneficiaries who are all residents of that State pursuant to the TRC issued by the tax authority in US, such beneficiaries are no longer required to submit individual TRCs.
9. Applications with incomplete documents will not be accepted by ITAD.
10. In meritorious cases, the nonresident or withholding agent may be granted an extension within which to submit the required documents but in no case shall it exceed thirty (30) day
Transfer Pricing Documentation
1. For interest imposed on a loan or debt-claims between related parties, the best proof of arm's length transfer prices for such controlled transactions is the transfer pricing documentation (TPD) of the nonresident creditor. In the event that a full TPD is not available, the nonresident may prove, through its Transfer Pricing Policy for Intercompany Loans or any equivalent transfer pricing study, that the interest rate imposed on the loan or debt-claim is arm's length.
Penalties and transitory provisions
1. There will be no automatic denial for failure of the filer to file RFC/TTRA within the prescribed period. However, the penalty for late filing shall be imposed.
2. Nonresident who has income in 2020 and prior years subjected to treaty rates, but no TTRA or Certificate of Residence for Tax Treaty Relief (CORTT) Form was filed therefor, the withholding agent has until the last working day of this year to file an RFC with complete documentary requirements. Failure to file the same within the prescribed deadline would be subject to administrative penalties under Sections 250 and 255 of the Tax Code. Moreover, a penalty of P1,000 per failure to file a CORTT Form for dividends, interests and royalties paid after the effectivity of RMO No. 8-2017 until December 31, 2020 shall be imposed.
3. All taxpayers with pending TTRAs will still receive a "Final Notice to Submit Additional Documents" and will be given three (3) months from receipt thereof to submit the required documents. Those who have been notified that their applications have been archived will no longer receive a Final Notice but are obliged to submit the required documents indicated in the previous notice/s within four (4) months from the effectivity of the new RMO.
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