QUESTION: Do I need Audited Financial Statement with CPA certification in filing my Income Tax return?
ANSWER: The short answer is YES if your sales or gross receipts exceeded Php150,000 in any quarter during the year (or if you have more than Php600,000 for the whole year).
So, it depends on your level of sales/revenue/income. Our Tax Code says:
“…corporations, companies, partnerships or persons whose gross quarterly sales, earnings, receipts or output exceed One hundred fifty thousand pesos (P150,000) shall have their books of accounts audited and examined yearly by independent Certified Public Accountants and their income tax returns accompanied with a duly accomplished Account Information Form (AIF) which shall contain, among others, information lifted from certified balance sheets, profit and loss statements, schedules listing income-producing properties and the corresponding income there from and other relevant statements.”
