22/05/2026
BIR Revenue Memorandum Circular (RMC No. 047-2026) on business closure/cancellation dated
Highlights
Main Purpose
The circular simplifies and streamlines the process for closing or cancelling business registration with the Bureau of Internal Revenue under the “Ease of Paying Taxes Act” (RA 11976).
Who Are Covered
Applies to:
Self-employed individuals and professionals
Online sellers / digital platform earners
Corporations, partnerships, cooperatives
Estates and trusts
Government entities and GOCCs
All business sizes (micro to large)
Where and How to File
Applications may be submitted to the taxpayer’s Revenue District Office (RDO):
Filing options:
Email submission
Online through:
TRRA Portal
ORUS
Manual/personal submission
Some original documents still need physical/manual submission.
Simplified Documentary Requirements
Only these documents are required:
1. BIR Form 1905
Application for registration update/cancellation.
2. Inventory List (for VAT taxpayers)
List of remaining inventory and capital goods.
3. Unused Invoices/Documents
Including:
Invoices
Receipts
Vouchers
Debit/Credit memos
Delivery receipts
Purchase orders
4. Original BIR Certificates/Permits
If applicable:
COR/BIR Form 2303
Authority to Print
Notice to Issue Invoice
POS/Cash Register permits
EIS certificates
5. If Filed Through a Representative
Need:
SPA (for individuals)
Board Resolution/Secretary’s Certificate (for corporations)
IDs with signatures
6. If Owner is Deceased
Need:
Death Certificate
Estate/settlement documents
Important Tax Filing Rule
Taxpayer must still:
File all final tax returns
Pay remaining taxes due
If there was no activity:
File zero returns
Major Improvement / Most Important Change
Registration can now be cancelled upon submission of complete documents.
This is significant because:
Penalties for non-filing stop accruing after complete submission.
Taxpayer status will be marked “deregistered” while processing.
Fast Processing for Small Taxpayers
For:
Micro taxpayers
Gross sales ≤ ₱3 million
Gross assets ≤ ₱8 million
Tax clearance must be issued within:
3 working days if no liabilities/open cases
3 working days after payment if there are liabilities
Also:
No mandatory audit for closure/cancellation
This is one of the biggest taxpayer-friendly provisions.
For Large Taxpayers or Those Under Audit
Closure/cancellation will only be completed after:
Audit termination
Clearance of pending investigations
Applies if:
Gross sales exceed ₱3 million
Gross assets exceed ₱8 million
Existing LOA/audit pending
Important Warning
If a business stops operating but does NOT formally close with BIR:
The taxpayer remains liable for:
Tax returns
Taxes
Penalties
until official cancellation is completed.
Effectivity
The circular took effect immediately upon issuance (May 19, 2026).
