The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 47-2026, prescribing streamlined guidelines and procedures for the closure and/or cancellation of business registration with the BIR.
Coverage
The circular applies to all taxpayers registered with the BIR, including those who have permanently ceased business operations or are otherwise subject to registration cancellation, such as:
Individual taxpayers engaged in trade, business, or profession (including those earning from digital or online platforms);
Non-individual taxpayers (e.g., corporations, partnerships, joint ventures, cooperatives, and other juridical entities);
Estates and trusts, government-owned or controlled corporations and agencies; and
Business taxpayers are classified as micro, small, medium, or large taxpayers.
Filing of Application
Applications for closure and/or cancellation of business registration must be filed with the concerned Revenue District Office (RDO):
Electronically via the BIR’s online facilities (e.g., ORUS or TRRA portal), or official email of the RDO; or
Manually through personal submission.
Documentary Requirements
Taxpayers are required to submit the following:
BIR Form No. 1905 (Application for Registration Update Correction/Cancellation);
Inventory of unused goods/supplies (for VAT-registered taxpayers);
Unused invoices, receipts, and other accounting forms;
Original BIR permits and notices issued;
Certificate of Registration (COR/eCOR); and
Other applicable permits (e.g., Authority to Print, POS permits, or invoicing system certifications).
Additional requirements may apply depending on the type of taxpayer (e.g., Special Power of Attorney for individuals or Board Resolution for corporations).
Final Tax Compliance
Before a business closure can be finalized, taxpayers must file all required final or short-period tax returns covering the period from the beginning of the taxable year up to the date of closure for all
applicable tax types. All outstanding taxes must also be fully paid.
For periods with no business activity, taxpayers are still required to file zero returns.
The cancellation of business registration will only proceed once the following conditions are met:
Complete submission of all required documents; and
Full payment of all tax liabilities.
Upon approval, the taxpayer’s registration status will be updated to “closed.” For individual taxpayers, the Taxpayer Identification Number (TIN) will also be cancelled.
Internal
Additionally, taxpayers who are under audit, as well as those with gross sales exceeding P3,000,000 in the preceding year, or gross assets exceeding P8,000,000 at the time of retirement, will only be granted clearance after the audit has been completed.
Effect of non-compliance
Taxpayers who stop operations without applying for closure or cancellation will continue to be treated as active taxpayers and remain liable for:
Filing tax returns;
Paying taxes; and
Incurring penalties for non-compliance.
The Circular takes effect on May 19, 2026. Please be guided accordingly.
Source:
P&A Grant Thornton
Certified Public Accountants