20/05/2026
TAX ALERT!
The Bureau of Internal RevenuThe Bureau of Internal Revenue has recently issued Revenue Memorandum Circular (RMC) No. 47-2026 prescribing the simplified and streamlined guidelines for the closure and cancellation of business registrations.
• The guidelines apply to all business taxpayers registered with the BIR who have permanently ceased business operations.
• This covers individuals, non-individuals, estates, trusts, and government entities across all business classifications (Micro, Small, Medium, or Large).
• Applications must be submitted to the Revenue District Office (RDO) where the business is registered.
• Taxpayers can file electronically through the BIR's official email, TRRA Portal, or ORUS, or they can file manually at the RDO.
• Certain documents, specifically unused invoices and original BIR permits, must be submitted manually.
• Authorized representatives must provide proper documentation, such as a Special Power of Attorney for individuals or a Board Resolution for non-individuals, along with valid IDs.
• Taxpayers must file all final or short-period tax returns up to the date of closure and pay the corresponding taxes.
• If there was no business activity, the taxpayer is required to file zero returns.
• Penalties for non-filing of returns will stop accruing once the complete documentary requirements are submitted.
• Taxpayers who cease operations without formally applying for closure will remain liable for all ongoing tax obligations and penalties.
• Micro taxpayers are not subject to a mandatory audit for the cancellation of their business registration.
• A Tax Clearance will be issued to qualifying micro taxpayers within three working days if they have no open cases or after they pay any outstanding liabilities.
• Taxpayers with gross sales exceeding P3,000,000.00, gross assets exceeding P8,000,000.00, or a pending Letter of Authority will only receive their clearance after their audit is formally terminated.
Source: BIR website has recently issued Revenue Memorandum Circular (RMC) No. 47-2026 prescribing the simplified and streamlined guidelines for the closure and cancellation of business registrations.
• The guidelines apply to all business taxpayers registered with the BIR who have permanently ceased business operations.
• This covers individuals, non-individuals, estates, trusts, and government entities across all business classifications (Micro, Small, Medium, or Large).
• Applications must be submitted to the Revenue District Office (RDO) where the business is registered.
• Taxpayers can file electronically through the BIR's official email, TRRA Portal, or ORUS, or they can file manually at the RDO.
• Certain documents, specifically unused invoices and original BIR permits, must be submitted manually.
• Authorized representatives must provide proper documentation, such as a Special Power of Attorney for individuals or a Board Resolution for non-individuals, along with valid IDs.
• Taxpayers must file all final or short-period tax returns up to the date of closure and pay the corresponding taxes.
• If there was no business activity, the taxpayer is required to file zero returns.
• Penalties for non-filing of returns will stop accruing once the complete documentary requirements are submitted.
• Taxpayers who cease operations without formally applying for closure will remain liable for all ongoing tax obligations and penalties.
• Micro taxpayers are not subject to a mandatory audit for the cancellation of their business registration.
• A Tax Clearance will be issued to qualifying micro taxpayers within three working days if they have no open cases or after they pay any outstanding liabilities.
• Taxpayers with gross sales exceeding P3,000,000.00, gross assets exceeding P8,000,000.00, or a pending Letter of Authority will only receive their clearance after their audit is formally terminated.
