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Annual and short period audit
We perform audit engagements in accordance with the Philippine Standards on Auditing (PSA), as required by required by national legislation or other regulations of agencies such as the Bureau of Internal Revenue (BIR), Securities and Exchange Commission (SEC), Bangko Sentral ng Pilipinas (BSP), Insurance Commission (IC), Cooperative Development Authority (CDA), etc.
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Review engagement
We provide a limited or moderate level of assurance that financial statements are free from material misstatements, in accordance with the Philippine Standard on Review Engagements (PSRE).
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Financial statements compilation
We help in the preparation of financial statements of clients in accordance with Philippine Standard on Related Services (PSRS) 4410.
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Security offerings services
We provide assurance services for our clients’ debt and equity security offerings. These include audits or reviews of financial statements, examination of prospectuses, and issuance of comfort letters as required.
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Agreed-upon procedures
We perform agreed-upon procedures in accordance with applicable professional standards, delivering factual findings reports tailored to the specific needs of our clients and relevant third parties. Our services include asset and inventory count observations, financial statement translations, and assistance with regulatory applications such as capital stock increases and debt-to-equity conversions.
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Other related services
We help our clients stay ahead of the evolving complexities in the accounting landscape. Our offerings include training programs, transition and implementation planning, and impact assessments related to newly adopted accounting standards, such as Philippine Financial Reporting Standards (PFRS Accounting Standards) and other relevant frameworks.
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Tax advisory
With our knowledge of tax laws and regulations, we help safeguard the substantive and procedural rights of taxpayers and prevent unwarranted assessments.
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Tax compliance
We aim to minimise the impact of taxation, enabling you to maximise your potential savings and to expand your business.
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Transfer pricing
We provide comprehensive Transfer Pricing (TP) solutions suited to the needs of the client.
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Corporate services
For clients who want to do business in the Philippines, we help set up the business and assist in determining the appropriate and tax-efficient operating business or investment vehicle.
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Tax education and advocacy
We offer seminars and trainings on tax-related developments and special issues of interest to taxpayers.
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Business risk services
We cover a wide range of solutions that help you identify, address, and monitor the risks of your business.
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Business consulting services
We help organisations improve their operational performance, efficiency, sustainability, and effectiveness in today’s dynamic business landscape.
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Transaction services
We help organisations provide strategic advice and support throughout the transaction process and provide financial reporting advisory services to help companies successfully navigate the complex financial requirements in a broad range of scenarios.
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Forensic advisory
We provide support to organisations on dispute resolution, fraud prevention and detection, insurance claims, and other situations requiring detailed investigations.
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ProActive Hotline
We empower organisations to uphold integrity through safe and anonymous reporting.
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Sustainability
We promote responsible and innovative practices that reduce our environmental footprint, promote social responsibility, and ensure long-term economic viability
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P&A Academy
P&A Grant Thornton's unwavering commitment to relevance extends to its learning arm - P&A Academy.
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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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Payroll Services
We streamline payroll operations with secure, technology-driven solutions that enhance accuracy, ensure compliance, and free organisations to focus on strategic priorities.
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Human Capital Outsourcing Services
We deliver highly trainable and experienced accounting professionals matched to client requirements, covering center and attrition management, and special projects.
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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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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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Behind the Numbers: People of P&A Grant Thornton
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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.
Digital transformation has been a buzzword in the business community for years now, and its importance was emphasized when the COVID-19 pandemic hit. As COVID-19 affects businesses globally, business entities must find ways to continue their operations despite the government restrictions that were enforced to ensure public health and safety. Accordingly, for some companies COVID-19 became the main driver behind their digital transformation journey.
Having a computerized accounting system is vital in a company's digital transformation. However, when I tell our clients, especially foreign clients, that they need to secure from the BIR (Bureau of Internal Revenue) a "permit to use" (PTU) a computerized accounting system (CAS) beforehand, they observe that this is not a common practice in other countries. Other countries do not require registration of CAS while others only need to wait for the system to be accredited; once the accounting system is approved, all companies using such a system no longer need to secure permit to use.
In the Philippines, however, there is a two-step process before a taxpayer can use a CAS. First, the CAS must be accredited, and second, the company will use it needs to secure a PTU the accredited CAS.
Securing PTU begins with submitting an application with a number of documentary requirements.The CAS will then be scheduled for a system demonstration, which involves a walk-through of the CAS. Most of the time, getting on the system demonstration schedule is a challenge considering the volume of the applications that the BIR technical team is processing. After the system demonstration, taxpayer-applicants must address the issues or concerns, if any, identified by the BIR-evaluators. Afterwards, upon recommendation of the technical working group (TWG), the CAS accreditation will be approved by the Accreditation Board, and finally, the PTU will be issued. Timeline for securing a PTU could take a year or more.
Fortunately, in February last year, all taxpayers with pending applications for PTU were relieved when the BIR issued Revenue Memorandum (RMC) No. 10-2020. In lieu of PTU, the TWG Secretariat of the concerned Revenue District Office (RDO) is to issue an Acknowledgement Certificate (AC) within three days from the submission of all documentary requirements enumerated in the RMC. However, there is confusion on whether it also covers new applications filed after the effectivity of RMC No. 10-2020.
Finally, we could say goodbye to PTU. Recently, the BIR issued RMC No. 5-2021, which provides for a simplified registration process for the CAS, computerized books of account (CBA) and/or its components, including electronic storage system (ESS), middleware and other similar systems (collectively referred to as “system”). This RMC supersedes the provisions of RMC No. 10-2020 and certain portions of Revenue Memorandum Order (RMO) No. 29-2002.
As provided under RMC No. 5-2021, all taxpayers intending to use CAS, CBA and /or its components, including ESS, middleware and other similar systems, are not required to secure PTUs. They are, however, still required to register the System by submitting to the RDO where the taxpayer is registered all the documentary requirements as provided under Annex “A” of the RMC. These documents include the following:
- Sworn statement with attached duly accomplished summary of system description, commercial invoice/receipt, document description, among others;
- Sample print-out of principal and supplementary receipts/invoices compliant with Revenue Regulations (RR) No. 16-2018 and other accountable forms that will be used;
- Printed copy of audit trail;
- Standard functional and technical requirements; and
- Certification from the purchasing company allowing the taxpayer to use the same system, in case the license of the software to be used is under the name of the parent or affiliate.
On the other hand, the RDO must issue an AC within three days upon submission of complete documentary requirements. A system demonstration or pre-evaluation is no longer required prior to the use of the system. A post-evaluation will be conducted by the RDO to determine the compliance of the system with the standard set forth in Annex B of the RMC. Failure to comply with the standard will lead to the taxpayer-user incurring penalties provided under the existing regulations. Hence, it is important for the taxpayers to ensure that their CAS comply with the standard.
Annex B requires that the system reflect certain details in the printout and electronic copy of the books of account, financial statements and other system-generated reports. Among these items are the registered address where such reports are generated and the phrase “VAT REG TIN” or “NON-VAT REG TIN”, whichever is applicable, followed by the nine-digit tax identification number (TIN) plus the branch code of the taxpayer. I believe these details are not necessary since the taxpayer name should suffice. I agree that those details should be required in the invoices and receipts, but not in the books of account and other system-generated reports. What is important is to ensure the credibility of the reports.
On the other hand, one of the common concerns of taxpayers using CAS is whether all enhancements made in the system require registration. At last, this was clarified in the RMC.
The RMC specifically provides that the new registration is required only if there are “major” system enhancements. Major enhancements are those that have a direct impact on the financial aspect of the system, which include but not limited to the following:
- Change in the functionality of the system:
- Addition or removal of modules or submodules within the system;
- Change in the system/software version or release number; and
- All other enhancements deemed major system enhancements based on the recommendations of the technical evaluators after the comparative functionalities of the old and upgraded system were presented by the taxpayer.
In case of “minor” system enhancement/s, the taxpayer must submit a written notification to its RDO stating minor enhancements on the system. Minor enhancements include user interface modification, bug fixes and performance improvements, among others.
The effects of the pandemic continue to unfold. New of strains of the COVID-19 virus have been discovered in other countries and Japan declared last week its second COVID state of emergency. Accordingly, business entities should continue to find ways to ensure that their operations, including back-office supports, continues in case more drastic government restrictions are again be enforced to ensure public health and safety. Hence, the streamlined policies for the registration of CAS represent a welcome development to all taxpayers adopting to it. I would hope they can all fully implement their CAS before the next lockdown (but of course, I’m still praying we do not come to that point).
Let's Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.
Edward D. Roguel is a partner of the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd. For comments and inquiries, please email pagrantthornton@ph.gt.com.
As published in BusinessWorld, dated 12 January 2021