RMC No. 47-2026: Prescribing Simplified and Streamlined Guidelines and Procedures in the Closure and/or Cancellation of Business Registration with the Bureau of Internal Revenue

Summary

RMC No. 47-2026 prescribes simplified and streamlined guidelines and procedures for the closure and/or cancellation of business registration with the BIR.

Key points

1. Coverage. It applies to all business taxpayers registered with the BIR, domestic or foreign, resident or non-resident, that have permanently ceased operations or are subject to closure or cancellation. This includes individuals and professionals (including online earners), non-individual taxpayers, estates and trusts, government agencies, GOCCs, GFIs, and Micro, Small, Medium, or Large taxpayers.
2. Where and how to apply. Applications go to the RDO where the Head or Branch Office is registered, by email from the taxpayer’s registered official email address, through the TRRA Portal or ORUS, or manually in person. The unused invoices and BIR notices and permits must be submitted manually.
3. Documents required. Only these are submitted: BIR Form No. 1905 (2 original copies), a list of ending inventory for VAT-registered taxpayers, unused invoices and accounting forms with their inventory, original BIR notices and permits (such as the COR, Authority to Print, and permits for CRM/POS and EIS), and authority documents when a representative files or the individual proprietor has died.
4. Final returns. The taxpayer files all final or short-period returns from the start of the taxable year to the closure date and pays the taxes due, and files zero returns for periods without business activity.
5. Cancellation and clearance. Registration is cancelled on mere filing of the complete requirements, penalties for non-filing stop accruing afterwards, and form types are placed under “deregistered”. For taxpayers with gross sales not over Three Million Pesos (₱3,000,000.00) for the preceding year or gross assets upon retirement not over Eight Million Pesos (₱8,000,000.00), Tax Clearance is issued within three (3) working days, and these micro taxpayers face no mandatory audit.
6. Larger taxpayers and unclosed businesses. Taxpayers with a pending audit under an LOA, or with gross sales or assets above those amounts, get clearance and closure only after the audit ends. Those who stop operating without filing the closure requirements stay liable for all tax obligations and penalties until closure is completed.

Who is affected

• All BIR-registered business taxpayers that permanently ceased operations
• Individuals, professionals, and online earners
• Corporations, partnerships, estates, trusts, GAIs, GOCCs, and GFIs

Deadlines and effectivity

• Tax Clearance for micro taxpayers: within three (3) working days from complete submission
• Issued: May 19, 2026

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.