Tax Alert No. 28 [Revenue Memorandum Circular (RMC) No. 47-2026]

Revenue Memorandum Circular (“RMC”) No. 47-2026 has been issued on 19 May 2026, pursuant to Section 5(J) of Revenue Regulations (RR) No. 7-2024 and RMC No. 91-2024, implementing Republic Act (RA) No. 11976 or the “Ease of Paying Taxes” Act. This Circular is hereby implemented to simplify, standardize, and streamline the guidelines and procedures in the processing of applications or closure and/or cancellation of taxpayer's business registration with the Bureau of Internal Revenue (“BIR”).

Set out below is a summary of RMC’s key provisions:

1. Coverage
   • This Circular shall apply to all business taxpayers registered with the BIR, whether domestic or foreign, resident or non-resident, that have permanently ceased business operations or have otherwise become subject to closure or cancellation of business registration.
2. Modes and Venue of Filing of Application for Closure and/or Cancellation of Business Registration
   • The application for closure and/or cancellation of business registration, together with the required documents, shall be submitted to the concerned Revenue District Office (“RDO”) where the taxpayer's Head or Branch Office is registered, either electronically or manually.
3. Filing and Payment of Final Tax Returns
   • The taxpayer shall file all final or short-period tax returns covering the period from the beginning of the taxable year up to the date of closure for all applicable tax types and pay the corresponding taxes due thereon. For periods during which there was no business activity, the taxpayer shall file zero returns.
4. Effect of Submission of Documentary Requirements and Completion of the Closure and/or Cancellation of Business Registration Process
   • The registration of the taxpayer shall be cancelled upon mere filing and submission of the complete requirements under Section 4 of this Circular, with the RDO where the taxpayer is registered.
   • Penalties shall not accrue after the submission of the required documentary requirements.  For this purpose, the taxpayer's registered form types shall be placed under "deregistered" to ensure that no open cases will be generated.
   • For micro taxpayers, or taxpayers whose gross sales in the immediately preceding year do not exceed Three Million Pesos (₱3,000,000.00), or whose gross assets upon retirement do not exceed Eight Million Pesos (₱8,000,000.00), the Tax Clearance shall be issued within three (3) working days after the submission of complete documentary requirements, provided that the taxpayer has no open cases or outstanding liabilities. If the taxpayer has outstanding liabilities, the Tax Clearance shall be issued within three (3) working days after the submission of complete documentary requirements and payment of all outstanding liabilities, including penalties. Micro taxpayers shall not be subject to mandatory audit for closure and/or cancellation of business registration.
   • For taxpayers with a pending audit under an existing Letter of Authority (“LOA”), or for taxpayers whose gross sales in the immediately preceding year exceed ₱3,000,000.00, or whose gross assets upon retirement exceed ₱8,000,000.00, the Tax Clearance shall be issued and the business closure or registration cancellation process completed, only after the termination of the conduct of the audit.
   • Once the Tax Clearance is issued, the taxpayer’s business name registration status shall be updated to “Closed” in the BIR registration database.
   • For individual taxpayers, the update of the registration status to “Closed” completes the business closure or registration cancellation process.
   • For non-individual taxpayers, the closure or business registration cancellation process is completed upon the subsequent cancellation of the TIN.
5. Effect of Failure to Apply for Closure and/or Cancellation of Business Registration.
   • Taxpayers who cease business operations without submitting the documentary requirements for the closure and/or cancellation of their business registration with the BIR, as prescribed under Section 4 hereof, shall continue to be liable for all tax obligations, including the filing of tax returns and payment of taxes, including penalties, until the closure and/or cancellation of the business registration is completed with the BIR.

You may access the full version of the RMC, including the list of documentary requirements, through the BIR website. 

For any inquiry or request for assistance, please feel free to contact anyone from our Tax Services group. You may also reach us through this link: www.pwc.com/ph/en/about-us/contact-us.html