THE Bureau of Internal Revenue (BIR) said it streamlined procedures for the cancellation of business registrations.
“From improving the ease of doing business and the ease of paying taxes, this reform completes the BIR’s support for businesses through every stage of the business life cycle,” BIR Commissioner Charlito Martin R. Mendoza said.
“If we make it easier to start and operate a business, then the government must also make it easier to properly close BIR registration once operations have ceased,” he added.
In Revenue Memorandum Circular No. 047-2026 issued on May 19, the BIR said the revised guidelines aim to ease the processing of applications for the closure and cancellation of taxpayers’ business registrations.
The circular covers all business taxpayers registered with the BIR that have permanently ceased operations or are subject to the cancellation of their business registration.
These include individual taxpayers engaged in trade or business or in the practice of professions, as well as those earning income from digital or online platforms.
Corporations, partnerships, joint ventures, associations, cooperatives, and other juridical entities are likewise covered, along with estates and trusts, government agencies and instrumentalities, government-owned and -controlled corporations and government financial institutions.
The circular also covers business taxpayers classified as micro, small, medium or large taxpayers.
According to the circular, taxpayers are required to submit their applications and documentary requirements to the revenue district officer. Electronic filing is also allowed, except for estates, trusts, government agencies, and taxpayers classified according to size.
The circular requires taxpayers to file all final or short-period tax returns covering the period from the beginning of the taxable year up to the date of closure. Taxpayers are also expected to file zero returns for periods without business activity.
The BIR clarified that taxpayers that cease operations without submitting the required documents will continue to be liable for tax.
Since micro taxpayers with gross sales are not subject to mandatory audits, their tax clearance will be issued within three working days of submission of complete requirements assuming no outstanding liabilities. — Justine Irish D. Tabile
