The Bureau of Internal Revenue (BIR) released Revenue Memorandum Circular (RMC) No. 47-2026 on May 19, 2026, outlining new guidelines aimed at simplifying the process of closing a business and canceling tax registration. This forms part of the implementation of Republic Act No. 11976, or the Ease of Paying Taxes Act.
According to BIR Commissioner Charlito Martin Mendoza, the reform is aligned with the directive of Ferdinand Marcos Jr. to make government services faster and more efficient, as well as the call of Finance Secretary Frederick Go to make tax administration more investor-friendly and business-friendly.
Under the new guidelines, businesses that have ceased operations may apply for closure or cancellation of registration either manually or electronically through the Revenue District Office where they are registered.
Documentary requirements have also been simplified and standardized. Aside from the application form and the submission of original BIR registration documents, only two sets of documents are now required:
(1) a list of ending inventory of goods and supplies, including capital goods for VAT-registered taxpayers; and
(2) an inventory of unused invoices, supplementary documents, and other accounting forms.
Once the complete requirements have been submitted, penalties for the non-filing of tax returns will no longer increase. The taxpayer’s form types will be placed under “deregistered” status to prevent the accumulation of open cases. However, the BIR may still conduct an audit to determine whether there are any outstanding tax liabilities.
