ERP Software for Philippine Businesses

The EIS covers Sales Invoices, Official Receipts, Service Billings, Debit Notes/Memos, and Credit Notes/Memos. Each document must be generated using BIR-approved software in JSON format and transmitted to the BIR system for validation within three calendar days of the transaction. Every invoice payload is digitally signed by the taxpayer using a private key, and the BIR validates integrity and authenticity using the corresponding public key. If a head office or any branch of a business falls within the covered categories, all locations must issue e-invoices.

Yukti generates EIS-compliant JSON payloads, handles digital signing, and transmits invoice data to the BIR within the three-day reporting window. The system tracks compliance status across multiple branches and alerts when any location falls behind on transmission deadlines.

Philippine VAT applies at 12% on most goods and services. VAT-registered businesses must file monthly VAT returns (BIR Form 2550M) and quarterly VAT returns (BIR Form 2550Q). The Percentage Tax at 3% applies to non-VAT-registered businesses with gross annual sales not exceeding PHP 3 million. Withholding tax applies to a wide range of payments including professional fees, rentals, and service payments, with rates varying by payment type. Yukti automates all VAT and withholding tax calculations.

The BIR offers tax incentives to encourage EIS adoption. Micro and small taxpayers can deduct 100% of their system setup costs, while medium and large taxpayers can deduct 50%. These deductions apply to the cost of acquiring or upgrading invoicing software to meet EIS requirements.

Philippine financial reporting follows Philippine Financial Reporting Standards (PFRS), which are substantially converged with IFRS. Small and medium enterprises may use PFRS for SMEs. Yukti supports both full PFRS and PFRS for SMEs configurations with the required BIR tax return attachments (Audited Financial Statements, tax computation schedules).

Payroll compliance includes SSS (Social Security System), PhilHealth, and Pag-IBIG Fund contributions, plus the income tax withholding computed on a cumulative basis throughout the year. Yukti calculates all statutory deductions and generates BIR Form 1601-C (monthly withholding tax) and Form 2316 (annual certificate of income tax withheld).