20/05/2026
The 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.
โข The guidelines apply to all business taxpayers registered with the BIR who have permanently ceased business operations.
โข This covers individuals, non-individuals, estates, trusts, and government entities across all business classifications (Micro, Small, Medium, or Large).
โข Applications must be submitted to the Revenue District Office (RDO) where the business is registered.
โข Taxpayers can file electronically through the BIR's official email, TRRA Portal, or ORUS, or they can file manually at the RDO.
โข Certain documents, specifically unused invoices and original BIR permits, must be submitted manually.
โข 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.
โข Taxpayers must file all final or short-period tax returns up to the date of closure and pay the corresponding taxes.
โข If there was no business activity, the taxpayer is required to file zero returns.
โข Penalties for non-filing of returns will stop accruing once the complete documentary requirements are submitted.
โข Taxpayers who cease operations without formally applying for closure will remain liable for all ongoing tax obligations and penalties.
โข Micro taxpayers are not subject to a mandatory audit for the cancellation of their business registration.
โข 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.
โข 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
