Due Diligence: Verifying Compliance with BIR and SSS

Due Diligence: Verifying Compliance with BIR and SSS

K
Kiran Bibi Broker Asked 1 month ago
What specific checks are required to verify the seller's complete compliance with the Bureau of Internal Revenue (BIR) and the Social Security System (SSS) during due diligence?
👍 0 Likes

2 Answers

Buyers should request the seller’s BIR tax clearance and recent filings for income tax, VAT, and withholding taxes, and verify SSS, PhilHealth, and Pag-IBIG contributions for employees. Consulting a local accountant ensures records are accurate and there are no outstanding liabilities.
N Answered by Neil Walter | 2 weeks ago
👍 0
When doing due diligence in the Philippines, verifying a seller’s BIR and SSS compliance is one of those nerve‑wracking but absolutely essential steps. For the BIR, you need to check that the seller has updated tax clearances, filed all income, VAT, and withholding taxes, and has no outstanding audits or disputes. For the SSS, confirm that employee contributions are fully paid and reported, and request certificates or official statements showing compliance. It might feel intrusive, but these checks give you peace of mind ensuring you’re not inheriting hidden liabilities and can move forward with confidence in the deal.
M Answered by M.Arham | 5 days ago
👍 0

Please log in to post an answer.