SEC Secures DOF Approval to Ease Reporting for Micro-Enterprises

The Securities and Exchange Commission (SEC) has received approval from the Department of Finance (DOF) to simplify reporting requirements for micro-enterprises, allowing them to submit certified financial statements instead of audited ones.

In a press release issued on 15 December 2025, the Commission announced that it released draft rules on 9 December for public comment regarding amendments to the Revised SRC Rule 68.

The proposal seeks to raise the audit threshold, exempting stock and non-stock corporations with total assets or liabilities not exceeding PHP 3 million from the mandatory submission of audited financial statements.

Currently, only corporations with assets or liabilities below PHP 600,000 are exempt from this requirement. The SEC aims to apply the new PHP 3 million threshold to financial statements covering fiscal years ending on or after 31 December 2025.

Under the new guidelines, qualifying corporations can submit financial statements certified under oath by the president and treasurer or chief financial officer, rather than an external auditor.

These certifying officers will assume full responsibility for the accuracy of the documents.

The DOF approved the adjustment in a letter dated 18 November, noting that the policy aligns with government efforts to stimulate economic growth while ensuring accountability.

The exemption will not apply to certain entities, including issuers of securities, investment houses, brokers, and financing companies with assets exceeding specific limits.

The public may submit comments on the proposed rules until 24 December.