TAX ALERT
Bureau of Internal Revenue
Extension of the Deadline for the Replacement of Ask for Receipt Notice
The Bureau of Internal Revenue (BIR) has granted an extension for the replacement of the old Ask For Receipt Notice (ARN) with the new Notice to Issue Receipts/Invoice (NIRI) from June 30, 2023 to September 30, 2023.
Be guided accordingly and comply with the order to avoid penalties.
PRC Online License Renewal
In the Philippines, it is the Professional Regulation Commission (PRC) that issues a PRC license, in the form of a PRC ID, to every passer of a board examination. It gives the holder a license to practice his/her profession in the country. Some of the professionals who are given licenses by the PRC are: nurses, medical technologist, civil engineers, geologists, policemen, and of course accountants, among others.
The PRC license renewal is done every three years, usually on the birth month of the license holder. In the past, renewing a professional identification card (PIC) is done using the manual process where renewing professionals have to fill up an application form, pay a corresponding fee, show their old ID, then wait for weeks or sometimes months to get their new ID.
Luckily, nowadays, the renewal process is done online after the PRC has utilized the Licensure Examination and Registration Information System (LERIS V2) making the renewal more convenient and easy, especially during the time of COVID 19 pandemic.
PRC Renewal Requirements
Although the set of requirements for PRC ID renewal varies per profession, the following are the usual required documents:
Accomplished Application for Professional
Identification Card (PIC)
One passport-sized picture with white background and full name tag
Payment of renewal fee
Earned CPD Units
Certificate of Good Standing (for some professions, accountants not included)
Special Power of Attorney (SPA) and valid ID for the authorized representative (in case the applicant won’t be able to renew the license personally). A valid ID of the authorized representative should also be presented. If the representative is also a PRC-licensed professional, he/she can claim the ID on behalf of another professional with the presentation of an Authorization Letter and his/her PRC ID.
To learn more about the online license renewal, you may read the step-by-step guidelines from PRC by downloading the PDF using the link Below. Or you may proceed to the PRC online license renewal by clicking this link.
Frequently Asked Questions
Does PRC License Expire?
Yes. The PRC license is valid for three years and expires on the month and day of the license holder’s birth date. License can be renewed as early as one year before its expiration date and in case the license expired, it can still be renewed but will incur charges.
Who Should Renew Their PRC License?
Ideally, every professional licensed under PRC should renew his/her license before its expiration date. As long as a license holder meets the requirements, which vary based on the profession, he/she will be able to successfully renew his PRC ID and continue practicing his/her profession in the country.
Is It Okay to Renew PRC License Without CPD Units?
Yes. A license holder can renew his/her PRC license even without or with incomplete Continuing Professional Development (CPD) units. This policy is based on the amended Implementing Rules and Regulations (IRR) of the CPD Act of 2016 through the PRC Resolution No. 2019-11463. In case you want to complete the CPD units, you can earn units by attending development programs like online courses, seminars, and graduate studies, among others.
Business owners and employers, whether of a small or large enterprise, have a legal and moral responsibility to provide their workers with government-mandated employee benefits under the Labor Code of the Philippines.
Aside from monetary benefits such as minimum wage, 13th month pay, overtime pay, among others, the employers are also required to become members of the SSS, Pag-IBIG Fund, and PhilHealth, and remit monthly contributions on behalf of their employees to these government offices.
These contributions ensure that employees have access to affordable house financing, health insurance, and social security benefits, as mandated by the law. Failure to do so, the employers subject themselves to penalties and possible prosecution.
Social Security System
This state-run insurance program offers benefits under the Social Security and Employees' Compensation (EC) Programs.
Social insurance covers private-sector employees, self-employed workers, as well as household workers. A spouse of the insured person is also entitled to receive social benefits under this scheme.
The benefits include:
• maternity pay
• sickness pay
• pensions
• disability benefits
• salary loans
• life insurance
• funeral grants
Home Development Mutual Fund (HDMF)
The HDMF, also known as Pag-IBIG fund, provides housing loans. It also offers financial assistance to Filipinos to enable them to afford decent housing.
Employees who earn less than ₱1,500/month contribute 1% while those who earn more contribute 2% of their monthly salary to the Pag-IBIG fund. Employers have to contribute 2% regardless of the salary bracket of the employee.
The highest contribution to HDMF fund should not exceed ₱200 in total, where the employee contributes ₱100 and the employer contributes the other ₱100.
PhilHealth
PhilHealth is the name of the health insurance plan in place for private employees in the Philippines. The contribution depends on the salary bracket of the employee. In general, the employer is responsible for contributing 7.37% of the total contribution, and the employee is responsible for 3.36%.
Health insurance
As of 2021, the monthly contribution rate for the health insurance program is 3.5% of the employee's basic salary. The monthly contribution is equally divided between employee and employer. PHP 10,000 is the salary minimum and PHP 70,000 is the salary ceiling.
PhilHealth covers inpatient benefits, outpatient benefits, Z benefits, and SDG benefits (explained below):
• Z benefits are offered to the patients who need prolonged hospitalization and more expensive treatment
• SDG benefits include treatment packages for malaria, HIV-AIDS, tuberculosis, animal bites, and others diseases
Employers are not obligated to provide any specific insurance benefits since PhilHealth offers the above entitlements. However, global and multinational companies often offer a secondary private health insurance to their employees to help them access more specialized care.
Indeed, offering a health insurance benefit, or other additional insurance benefits (like dental insurance, vision insurance, and life insurance), can be such an effective way to encourage employment and separate the company from competitors in the Philippines.
Government-Mandated Employee Benefits