MANILA – The Bureau of Internal Revenue has issued new guidelines simplifying the closure of businesses and cancellation of tax registration as part of the implementation of the Ease of Paying Taxes Act.

Under Revenue Memorandum Circular No. 47-2026 issued on May 19, businesses that have ceased operations may apply for the closure or cancellation of their registration either manually or electronically through the Revenue District Office where their head office or branch is registered.

“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. 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 already ceased,” BIR Commissioner Charlito Martin Mendoza said.

Under the new rules, applicants are required to submit an application form, surrender original BIR registration documents and previously issued permits, provide a list of ending inventory of goods and supplies, including capital goods for value-added tax (VAT)-registered taxpayers, and submit unused invoices, supplementary documents, and other unutilized accounting forms with their inventory.

The BIR said penalties for non-filing of tax returns will no longer accumulate once a taxpayer submits complete documentary requirements for closure or cancellation of registration.

It added that to avoid further accumulation of open cases, registered form types will be placed under “deregistered” status upon submission of complete requirements.

However, the agency clarified that filing for closure does not prevent it from conducting an audit to determine any remaining tax liabilities.

Micro taxpayers will not be subjected to mandatory audit for business closure or cancellation of registration. These are taxpayers with gross sales not exceeding P3 million in the preceding year or with gross assets not exceeding P8 million upon retirement.

Tax clearances will be issued within three working days for taxpayers with no open cases or outstanding liabilities upon submission of complete requirements.

For micro taxpayers with open cases, clearance will be released within three working days after submission of complete documents and payment of liabilities, including penalties.

The BIR reminded taxpayers that those who stop operations without properly filing for closure will continue to be liable for tax obligations until their registration is officially cancelled.

“This is our ‘Ease of Closing Business’ reform. In line with President Ferdinand R. Marcos Jr.’s directive to make government services faster, better, and more responsive, and Finance Secretary Frederick D. Go’s push to make tax administration more investor-friendly and business-friendly, the BIR is making it easier for taxpayers who have already ceased operations to properly close their business and cancel their registration,” Mendoza added. (PNA)