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Philippines

Head of State  : President Rodrigo Roa Duterte

Capital             : Manila

Language(s)    : Filipino, English, Spanish

Currency         : Peso

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ASEAN CPA
Download List : here

Profile of the Country

Information of The Country
Professional Associations
Qualifying as an Accountants
Setting Up an Accountancy Practice
Under the law, the practice of accountancy shall include, but not limited to, the following:
  • Practice of Public Accountancy - shall constitute in a person, be it his/her individual capacity, or as a staff member in an accounting or auditing firm, holding out himself/ herself as one skilled in the knowledge, science and practice of accounting, and as a qualified person to render professional services as a certified public accountant; or offering or rendering, or both or more than one client on a fee basis or otherwise, services as such as:
    1. the audit or verification of financial transaction and accounting records; or
    2. the preparation, signing, or certification for clients of reports of audit, balance sheet, and other financial, accounting and related schedules, exhibits, statements or reports which are to be used by stockholders or for publication or for credit purposes, or to be filed with a court or government agency, or to be used for any other purpose; or
    3. the design, installation, and revision of accounting systems and controls; or
    4. the preparation of income tax returns when related to accounting and auditing procedures; or
    5. when he/she represent clients before government agencies on tax and other matters relating to accounting or renders professional assistance in matters relating to accounting procedures and the recording and presentation of financial facts or data.
  • Practice in Commerce and Industry - shall constitute in a person involved in decision making requiring professional knowledge in the science of accounting, as well as the accounting aspects of finance and taxation, or when such employment or position requires that the holder thereof must be a CPA.
  • Practice in Education/Academe - shall constitute in a person in an educational institution which involve teaching of accounting, auditing, management advisory services, accounting aspect of finance, business law, taxation and other technically related subject: provided, that members of the Integrated Bar of the Philippines may be allowed to teach business law and taxation subjects. Provided, further, that the position of either the dean or the department chairman or its equivalent that supervises the Bachelor of Science in Accountancy program of an educational institution is deemed to be in practice of accountancy in the academe/education and therefore must be occupied only by a duly registered CPA.
  • Practice in Government - shall constitute in a person who holds, or is appointed to, a position in an accounting professional group in government or in an government-owned and/or controlled corporation, including those performing proprietary functions, where decision making requires professional knowledge in the science of accounting, or where a civil service eligibility as a certified public accountant is a prerequisite.
 
Individual (local)
 
In order to be qualified as having passed the licensure examination for accountants, a candidate must:
  1. obtain a general average of seventy five percent (75%), with no grade lower than sixty-five percent (65%) in any given subject.
  2. in the event a candidate obtains the rating of seventy-five percent (75%) and above in at least a majority of subjects as provided for in this Act, he/she shall receive a conditional credit for the subjects passed: provided, that a candidate shall take an examination in the remaining subjects within two (2) years from preceding examination: provided, further, that if the candidate fails to obtain at least a general average of seventy-five percent (75%) and a rating of at least sixty-five percent (65%) in each of the subjects re-examined, he/she shall be considered as failed in the entire examination.
A certificate of registration shall be issued to examinees who pass the licensure examination subject to payment of fees prescribed by the PRC, indicating that the person named therein is entitled to the practice of the profession with all the privileges appurtenant thereto. A Professional Identification Card bearing the registration number date of issuance, expiry date, duly signed by the chairperson of the PRC, shall likewise be issued to every registrant renewable every three (3) years.
 
No person shall practice accountancy, or use the title “Certified Public Accountant”, (“CPA”) or display or use any title, sign, card, advertisement or other device to indicate such person practices or offers to practice accountancy, or is a certified public accountant, unless such person shall have received from the Board a certificate of registration/Professional license and be issued a professional identification card or a valid temporary/special permit duly issued to him/her by the Board and the PRC.
 
All certified public accountants shall abide by the requirements, rules and regulations on continuing professional education to be promulgated by the Board, subject to the approval of the PRC, in coordination with the accredited national professional organization of certified public accountants or any duly accredited educational institutional. For this purpose, a Continuing Professional Development (CPD) Council is hereby created to implement the CPD program.
 
Total CPD credit units required for CPA for practice of public accountancy and accounting education is 60 for three years.. 59 in 2012.
 

Individual (Foreigner)
 
Subject or citizen of foreign countries may be allowed to practice accountancy in the Philippines in accordance with the provisions of existing laws, international treaty obligations including mutual recognition agreement entered into by the Philippines government with other countries. A person who is not a citizen of the Philippines shall not be allowed to practice accountancy in the Philippines unless he/she can prove, in the manner provided by the Rules of Court that, specific provision of law country of which he/she is a citizen, subject or national admits citizens of the Philippines to the practice of the same profession without restriction. However, as of today, no countries have included Philippines CPA in their approved list of qualification.
 
Professional practice of foreigners is subject to the PRC law, Section 7(j) of RA No. 8981, and specific provisions of respective professions, namely Section 35 of RA 9298. Special/
temporary permit may be issued by the Board subject to the approval of the Commission and payment of the fees the latter has prescribed and charged thereof to the following persons:
  1. A foreign certified public accountant called for consultation or for specific purpose which, in the judgment of the Board, is essential for the development of the country: Provided, that his/her practice shall be limited only for the particular work that he/she is being engaged: Provided, further, That there is no Filipino certified public accountant qualified for such consultation or specific purposes;
  2. A foreign certified public accountant engaged as professor, lecturer or critic in fields essential to accountancy education in the Philippines and his/her engagement is confined to teaching only; and
  3. A foreign certified public accountant who is an internationally recognized expert or with specialization in any branch of accountancy and his/her service is essential for the advancement of accountancy in the Philippines.
 
Public Accounting firm
 
Single practitioners and partnerships for the practice of public accountancy shall be registered certified public accountants in the Philippines provided, that from the effective date of RA 9298, a certificate of accreditation shall be issued to the certified public accountant in public practice only upon showing, in accordance with rules and regulations promulgated by the Board and approved by the PRC, that such registrant has acquired a minimum of three (3) years meaningful experience in any of the areas of public practice including taxation: provided, further, that this requirement shall not apply to those already granted a certificate of accreditation prior to the effectivity of RA 9298. The implementing rules and regulations of RA 9298 provides that meaningful experience shall be considered as satisfactory compliance with the requirements of the law if it is earned in commerce and industry, education, government, as well as public accounting. The Security and Exchange Commission shall not register any public accounting corporation and limited liability partnership for the practice of public accountancy.
 
Individual practitioners and firms or partnerships in public accountancy, including their partners and staff, are required to be accredited by the PRC and the BOA every three years.
Law and Regulations on Accountancy Practice
Specific Regulation
Monitoring Committee

Regulated Accounting Services

Compilation Services
Compilation Services on the Preparation of Financial Statutory Reports or Statements.


NAB Membership and/or PRA Registration

 

NAB Requirement :

For those in public practice, registration, or membership is required


PRA Requirement :

Yes


NAB Membership and/or PRA Registration Requirement
(such as examination, test, recognised qualifications, etc)

PRA Requirement :

Must be A Certified Public Accountant (CPA) who passed the CPA licensure examination of the PRA and subsequently registered with and accredited by the PRA
In addition, for CPAs in auditing as a public practice, three years of meaningful work experience

In addition, for .CPAs who audit listed companies, banks, insurance companies, and cooperatives need to be accredited with the Securities & Exchange Commission , Bangkok Sentral ng Pilipinas , Insurance Commission,

Cooperative Development Authority, and the Energy Regulatory Authority, as the case maybe.

In addition, CPAs doing tax practice services for clients with the Bureau of Internal Revenue need to be registered BIR.



Citizenship Requirement

Yes, only for Filipinos


Remarks

Subject to domestic regulations. Professional Regulations Commission Department of Labor and Employment rules, Bureau of Immigration, Bureau of Internal Revenue, Securities and Exchange Commission, Commission on Higher Education, Bangko Sentral ng Pilipinas, Insurance Commission, Cooperative Development Authority, Energy Regulatory Authority

Eligibility requirement, where applicable (ACPA/RFPA)

Applicable

Auditing as a Public Practice
Teaching of Accounting Subject

Non-Regulated Accounting Services

Professional Accountant in Business
  1. Bookkeeping services
  2. Business process outsourcing – finance and accounting processes
  3. Internal Auditing
  4. Risk Management
  5. Controllership
  6. Chief Financial Officer
  7. Budget officer
  8. Financial Analyst
  9. Forensic Auditor
  10. Management Accountant
  11. Representation of the company in the Bureau of Internal Revenue
  12. Due diligence


NAB Membership and/or PRA Registration


NAB Requirement:

No

PRA Requirement:

Yes


NAB Membership and/or PRA Registration Requirement
(such as examination, test, recognised qualifications, etc)

PRA Requirement:

For foreigners, Special Temporary Permits must be secured from the PRA pursuant to the Accountancy Law (Republic Act No. 9892) and its Implementing Regulations or Resolutions.

Other Requirements (from other regulator):

Please see “Remarks”


Citizenship Requirement

No.


Remarks

Subject to domestic regulations. Professional Regulations Commission Department of Labour and Employment rules, Bureau of Immigration, Bureau of Internal Revenue, Securities and Exchange Commission

Eligibility requirement, where applicable

1. Bookkeeping Services
    ACPA / RFPA : n/a

2. Business process outsourcing – finance and accounting processes
    ACPA : n/a
    RFPA : a

3. Internal Auditing
    ACPA / RFPA : n/a

4. Risk Management
    ACPA / RFPA : n/a

5. Controllership
    ACPA : n/a
    RFPA : a

6. Chief Financial Officer
    ACPA : n/a
    RFPA : a

7. Budget Officer
    ACPA / RFPA : n/a

8. Financial Analyst
    ACPA / RFPA : n/a

9. Forensic Auditor
    ACPA / RFPA : n/a

10. Management Accountant
      ACPA / RFPA : a

11. Representation of the company in the Bureau of Internal Revenue
      ACPA : n/a
      RFPA : a

12. Due Dilligence
      ACPA / RFPA : n/a

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