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REVENUE MEMORANDUM CIRCULAR (RMC) NO. 047-2026
This Circular simplifies, standardizes, and streamlines the guidelines and procedures for processing applications for the closure or cancellation of a taxpayer’s business registration with the BIR. It implements the legislative mandates of Republic Act (RA) No. 11976, or the Ease of Paying Taxes Act, by halting the accrual of non-filing penalties immediately upon the submission of a simplified, exhaustive list of documentary requirements.
Official De-Registration Compliance and Statutory Sections
| Section Title and Reference | Specific Legal Mandates and Filing Provisions |
| SECTION 1. Purpose | ● Promulgated pursuant to Section 5(J) of Revenue Regulations No. 7-2024 and RMC No. 91-2024. ● Implements Republic Act (RA) No. 11976, or the “Ease of Paying Taxes Act.” ● Designed to simplify, standardize, and streamline the procedures in processing applications for business closure or cancellation. |
| SECTION 2. Coverage | ● Applies strictly to all domestic or foreign, resident or non-resident business taxpayers registered with the BIR that have permanently ceased business operations. ● Individual Taxpayers: Self-employed individuals, professionals, and digital or online platform income earners. ● Non-Individual Taxpayers: Corporations, partnerships, joint ventures, associations, cooperatives, and other registered juridical entities. ● Special Entities: Estates, Trusts, Government Agencies and Instrumentalities (GAIs), GOCCs, and GFIs. ● Covers all business sizes classified as Micro, Small, Medium, or Large taxpayers. |
| SECTION 3. Modes and Venue of Filing of Application for Closure and/or Cancellation of Business Registration | ● Submitted directly to the concerned Revenue District Office (RDO) where the taxpayer’s Head or Branch Office is registered. ● Electronic Filing: Can be sent using the taxpayer’s registered official email to the RDO’s official email address, or through BIR electronic facilities (Taxpayer Registration-Related Application (TRRA) Portal and Online Registration and Update System (ORUS)). ● Manual Filing: Handled by personally submitting documents to the concerned RDO. ● Physical Rule: Documentary requirements under Section 4 Items 3 and 4 must be submitted manually. |
| SECTION 4. Documentary Requirements | ● Prescribes an exhaustive list restricted to only specific, mandatory items required for submission. 1. BIR Form No. 1905 (Application for Registration Information Update/Correction/Cancellation) – 2 original copies. 2. Ending Inventory List – 1 original copy detailing goods, supplies, and capital goods (required for VAT-registered taxpayers). 3. Unused Invoices and Forms: Physical surrender of unutilized accounting forms (vouchers, debit/credit memos, delivery receipts, purchase orders) with their corresponding Inventory. 4. Original BIR Notices & Permits: Surrender of COR (BIR Form No. 2303), Authority to Print, Notice to Issue Invoice, CRM/POS Accreditation Certificates/Permits, and EIS Certificates/Permits. 5. Authorized Representatives: Requires notarized SPAs for individuals, or notarized Board Resolutions/Secretary’s Certificates for non-individuals, along with specimen signatures on IDs. ● Individual Death Cases: Official Death Certificate and legal authorization documents (e.g., Deed of Self Adjudication or Deed of Extra-Judicial Settlement with SPA). |
| SECTION 5. Filing and Payment of Final Tax Returns | ● Taxpayers must file all final or short-period tax returns covering the timeline from the beginning of the taxable year up to the exact date of business closure for all applicable tax types. ● Taxpayers are mandated to pay the corresponding taxes due on those short-period returns. ● Zero Returns: Taxpayers must file zero returns for periods where no business activity occurred. |
| SECTION 6. Effect of Submission of Documentary Requirements and Completion of the Closure and/or Cancellation of Business Registration Process | ● Penalty Cessation: Registration cancelled upon mere filing/submission of complete Section 4 requirements (electronic/manual). Non-filing penalties stop accruing after submission. ● Taxpayer’s registered form types are set to under “deregistered” upon submission of the complete documentary requirements to prevent the generation of open cases. ● Micro Taxpayers (Gross sales preceding year ≤ ₱3M or gross assets upon retirement ≤ ₱8M): Tax Clearance issued within 3 working days from submission (if no open cases) or within 3 working days from submission and payment of outstanding liabilities/penalties. Status becomes “Closed” in the database. Not subject to mandatory audit. ● Process Completion: Completed for individuals when the database status is updated to “Closed”. Non-individual completion requires the subsequent cancellation of the TIN. ● Audit Rule: Taxpayers with pending audits under an existing Letter of Authority (LOA) or those exceeding the micro taxpayer thresholds will only receive Tax Clearance and complete the closure process after the termination of the conduct of the audit. |
| SECTION 7. Effect of Failure to Apply for Closure and/or Cancellation of Business Registration | ● Taxpayers who cease business operations without submitting the complete documentary requirements prescribed under Section 4 shall continue to be liable for all their tax obligations. ● Taxpayers remain legally responsible for the filing of ongoing tax returns and the payment of taxes, including accruing penalties, until the formal registration cancellation process is completed as provided under Section 6. |
| SECTION 8. Repealing Clause | ● All existing rules, guidelines, or revenue issuances which are inconsistent with the provisions of this Circular are formally amended, modified, or repealed accordingly. |
| SECTION 9. Effectivity | ● This Circular shall take effect immediately upon its promulgation. |