Other BriefingsHow Do Companies Register Their Books of Accounts with the BIR in the Philippines?
Companies in the Philippines must maintain books of accounts and register them with the Bureau of Internal Revenue (BIR). They may use manual, loose-leaf, or computerized books, with the registration process and deadlines depending on the method selected.
Registration is generally completed through the BIR’s Online Registration and Update System (ORUS). Instead of physically stamping the books, ORUS generates a QR Code Stamp that serves as proof of registration and can be validated online.
What books of accounts must a Philippine company maintain?
Companies must maintain books and accounting records appropriate to their transactions. These can include a general journal and general ledger, together with records covering sales, purchases, cash receipts, cash disbursements, and other transactions relevant to the business.
The books are separate from supporting documents such as invoices, contracts, bank records, and payroll records. Foreign-owned companies follow the same books-of-accounts registration framework as other Philippine business taxpayers, alongside their separate annual reporting obligations.
The BIR allows new business registrants to use manual, loose-leaf, or computerized books. A company choosing loose-leaf or computerized books does not have to register manual books first.
Registering manual books of accounts
A newly registered business using manual books must register before the deadline for filing its initial quarterly income tax return or annual income tax return, whichever comes earlier.
For subsequent manual books, registration must occur before the books are used and before the pages of the previously registered books are fully consumed. Manual books do not have to be replaced at the end of each taxable year. A taxpayer may voluntarily start a new set annually, but the new books must be registered before use.
Registration through ORUS generates a QR Code Stamp containing details including the taxpayer’s Tax Identification Number (TIN), registered name and address, type of book, volume number, and registration date. The QR Code Stamp is printed and attached to the first page of the manual books.
Registration requirements for loose-leaf books
Loose-leaf books allow accounting records to be generated electronically and subsequently printed and permanently bound.
A new business can elect to use loose-leaf books from the start without first registering manual books. It must, however, secure a Permit to Use (PTU) Loose-Leaf Books of Accounts before use. The PTU can be issued after the taxpayer has obtained its TIN.
Permanently bound loose-leaf books must be registered through ORUS within 15 days after the end of each taxable year, or within 15 days from the closure of business operations, whichever comes earlier. The Commissioner or an authorized representative may extend the period for submitting a request before the original deadline expires.
Following registration, the QR Code Stamp generated through ORUS is printed and attached to the first page of the permanently bound loose-leaf books.
BIR requirements for computerized books and accounting systems
A new company can adopt computerized books or a computerized accounting system without first registering manual books. Before use, it must secure the applicable Acknowledgment Certificate (AC) for its computerized books or computerized accounting system.
Computerized books must be registered through ORUS within 30 days from the close of each taxable year. Registration is required annually.
Unlike manual and loose-leaf books, the QR Code Stamp for computerized books is not attached to a physical book. It is printed and retained as part of the taxpayer’s records. Once computerized books have been registered through ORUS, the taxpayer does not need to separately submit a transmittal letter and USB drive to the Revenue District Office (RDO).
For a foreign investor using an existing enterprise resource planning (ERP) system, the Philippine company’s use of that system must meet the applicable BIR requirements for computerized accounting.
Books of accounts for Philippine branches
A Philippine branch must maintain books covering transactions attributable to its Philippine operations. This requirement applies even where its accounting is processed through a system also used by the foreign head office. Foreign investors operating multiple Philippine entities must similarly maintain accounting records at the entity level while coordinating statutory reporting across the group.
Branches can have separate ORUS accounts and use them for BIR registration transactions, including the registration of books of accounts.
When ORUS is unavailable
ORUS is the prescribed online channel for registering books of accounts, but BIR rules recognize circumstances in which registration may be processed manually through the relevant RDO.
Manual processing may be permitted where the taxpayer experiences technical problems with ORUS and can provide evidence of the error. BIR guidance has also recognized other specified circumstances for RDO processing rather than treating manual registration as an alternative to ORUS.
The effect of system availability was demonstrated in January 2025, when technical problems with ORUS led the BIR to extend that year’s loose-leaf registration deadline from January 15 to January 31 and the computerized books deadline from January 30 to February 17.
BIR registration deadlines for books of accounts
The principal registration deadlines differ according to the accounting method used:
|
Books of accounts |
Registration timing |
Frequency |
|
Manual — new business |
Before the deadline for the initial quarterly income tax return or annual income tax return, whichever comes earlier |
Initial registration |
|
Manual — subsequent books |
Before use and before previously registered books are fully consumed |
As required |
|
Loose-leaf |
Within 15 days after taxable year-end or closure, whichever comes earlier |
Annual |
|
Computerized |
Within 30 days after taxable year-end |
Annual |
Establish your Philippine accounting system with Dezan Shira & Associates
Dezan Shira & Associates supports foreign investors in establishing BIR-compliant accounting operations in the Philippines, including the configuration and registration of books of accounts. Contact our team for assistance setting up your Philippine accounting framework in line with local requirements.
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