SEC launches new digital platforms in push for sustainability, improved tax administration

The Securities and Exchange Commission (SEC) is launching five new digital  services that will make company registration more efficient and promote data  sharing for enhanced tax administration.  

The Commission on July 17 unveiled the third wave of its digital initiatives,  which includes the SEC Zuper Easy Registration Online (ZERO), Electronic  Submission Authentication Portal (eSAP), SEC Foreign Investments Registration  Station (FIRST) Green Lane Unit, Electronic Application For Modification Of  Entity Name And Data (eAMEND), and Swift Corporate and Other Records  Exchange (SCORE) Protocol.

The rollout of the new digital services forms part of the Commission’s  observance of SEC Sustainability Week 2024, in line with its thrust to pursue  sustainability by going digital.  

“We are harnessing digital technologies not only to improve the ease of doing  business,” SEC Chairperson Emilio B. Aquino said in his opening remarks during  the launch of the new services at The SEC Headquarters in Makati. 

“Ultimately, the SEC is harnessing digital technologies to champion  sustainability and help accelerate the attainment of the Sustainable  Development Goals,” he added.

Third wave of digital services 

The new digital platforms build on the Commission’s zero-contact policy and paperless transactions, while adhering to Finance Secretary Ralph G. Recto’s  marching orders to the SEC to collaborate with the Bureau of Internal Revenue  (BIR) to improve tax collection efficiency. 

SEC ZERO is a service under the Electronic Simplified Processing of Application  for Registration of Company (eSPARC), which allows applicants to digitally  authenticate system-generated forms through the eSAP platform. 

eSAP is integrated with SEC ZERO for the digital authentication of documents,  removing the need to affix wet signatures and submit hard copies of  registration requirements. It uses one-time passwords to proceed with the  electronic authentication of the documents. 

Digitally-authenticated forms have the same validity as the original certificate,  thereby eliminating the need for physical signing and notarization of the  registration documents. 

With digital authentication, SEC ZERO and eSAP enable applicants to register  their companies anytime and from anywhere, even abroad. 

To boost foreign investments in the country, the Commission created the SEC  FIRST Green Lane Unit, which will cater to entities under the Foreign Investment  Act, as well as foreign and multinational companies. SEC FIRST Green Lane Unit  will process registration, licensing and amendment of covered entities, among  others. 

Foreign-owned applications will no longer have to be queued together with  all other applications in the online registry, as they will be redirected to a  special lane of the SEC FIRST unit, making the processing time more efficient.

Meanwhile, eAMEND will serve as the online portal that will facilitate the  acceptance, processing and approval of payment for amendment  applications of corporations. The platform facilitates the issuance of the digital  copy of the Certificate of Amendment of Domestic Stock and Non-stock  Corporation almost instantly for certain transactions.  

The Commission also developed the SCORE Protocol, which will handle  requests of partner regulatory and enforcement agencies for company  information such as their articles of incorporation, general information sheet,  and audited financial statements. 

Data sharing for tax administration 

Alongside the launch of the digital services, the SEC signed a Memorandum of  Agreement and Data Sharing Agreement with the BIR to officially commence their partnership on the SCORE Protocol.

SEC Chairperson Emilio B. Aquino (left) and BIR Commissioner Romeo Lumagui Jr. (right) digitally sign the Memorandum and Data Sharing Agreements between the SEC and the BIR during the launch of the SEC’s Third Wave of Digital Initiatives on July 17 at the SecECenter in Makati City.

Under the partnership, the SEC will provide the BIR access to documents  needed to support its mandate to make tax assessments and collect national  internal revenue taxes, fees and charges, and enforcement activities. 

The BIR, meanwhile, shall provide the SEC with Tax Identification Number  Verification for the Commission’s online digital services, helping boost its  identity validation and monitoring of the corporate sector and the capital  market. 

The partnership will support the implementation of the government’s 2024  National Tax Campaign, which aims to generate funds through timely  payment of correct taxes to drive economic recovery and development.

SEC Chairperson Emilio B. Aquino (right) and BIR Commissioner Romeo Lumagui Jr. (left) pose for a photo opportunity after the digital signing of the Memorandum and Data Sharing Agreements between the SEC and the BIR during the launch of the SEC’s Third Wave of Digital Initiatives on July 17 at the SecECenter in Makati City.

Following the inaugural collaboration for the SCORE Protocol, the Commission  is targeting to expand the partnership with other government agencies. It is  currently in talks with the Bureau of Customs to leverage corporate data to  improve the collection of customs duties, excise and other taxes. 

The SEC is also looking at partnering with the Bureau of Immigration to help  monitor foreign nationals doing business in the country, as well as the Philippine  Government Electronic Procurement System to ensure the legitimacy of  corporations participating in the government procurement process. 

ADVT.

This article is brought to you by Securities and Exchange Commission.