TaxWise PH

BIR’s new “Ease of Closing Business” guidelines under RMC No. 47-2026 provide a much-needed remedy for taxpayers who were unable to formally close their BIR registration after ceasing business operations.

In many cases, businesses stop operating for years without processing proper closure with the BIR, resulting in accumulated penalties, open cases, and difficulties in securing tax clearances. This has also affected heirs and families of deceased taxpayers, especially when banks and other institutions require BIR clearance before releasing remaining assets or funds.

While this reform does not remove the importance of proper compliance, it helps simplify the process of finally closing inactive businesses and resolving long-standing tax registration issues.

✅ Simplified closure requirements
✅ Faster issuance of tax clearance
✅ Relief for micro taxpayers
✅ Easier resolution of dormant or unclosed registrations

If you need assistance in processing business closure, tax clearance, or resolving open BIR registrations, TaxWise is here to help.

𝗕𝗜𝗥 𝗟𝗔𝗨𝗡𝗖𝗛𝗘𝗦 “𝗘𝗔𝗦𝗘 𝗢𝗙 𝗖𝗟𝗢𝗦𝗜𝗡𝗚 𝗕𝗨𝗦𝗜𝗡𝗘𝗦𝗦” 𝗚𝗨𝗜𝗗𝗘𝗟𝗜𝗡𝗘𝗦 𝗙𝗢𝗥 𝗧𝗔𝗫 𝗥𝗘𝗚𝗜𝗦𝗧𝗥𝗔𝗧𝗜𝗢𝗡 𝗖𝗔𝗡𝗖𝗘𝗟𝗟𝗔𝗧𝗜𝗢𝗡; 𝗧𝗔𝗫 𝗖𝗟𝗘𝗔𝗥𝗔𝗡𝗖𝗘 𝗥𝗘𝗟𝗘𝗔𝗦𝗘𝗗 𝗔𝗦 𝗙𝗔𝗦𝗧 𝗔𝗦 𝗧𝗛𝗥𝗘𝗘 𝗗𝗔𝗬𝗦

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 47-2026 on May 19, 2026, prescribing new guidelines to simplify the process for closing businesses and cancelling tax registration, as part of the implementation of Republic Act No. 11976, otherwise known as the “Ease of Paying Taxes Act.”

“This is our ‘Ease of Closing Business’ reform,” Commissioner Charlito Martin R. Mendoza said. “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.”

“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,” he added.

Under RMC No. 47-2026, taxpayers who have already ceased operations may now 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.

The Circular simplifies and standardizes documentary requirements. Together with the application form and the surrender of original BIR registration documents and permits previously issued to the business, taxpayers will only be required to submit two other document sets for closure: the list of ending inventory of goods and supplies, including capital goods for VAT-registered taxpayers, and the unused invoices, supplementary documents, and other unutilized accounting forms, together with their inventory.

Under the new guidelines, penalties for non-filing of tax returns shall no longer accrue once the taxpayer submits the complete documentary requirements for the closure or cancellation of registration. To prevent the further accumulation of open cases, the taxpayer’s registered form types shall likewise be placed under “deregistered” status upon submission of the complete requirements. Filing an application for the closure or cancellation of registration, however, does not preclude the Bureau from conducting an audit to determine any outstanding tax liabilities.

In addition, micro taxpayers shall not be subject to mandatory audit for closure and/or cancellation of business registration. Hence, tax clearances will be issued within three (3) working days from submission of complete documentary requirements for those with no open cases or outstanding liabilities. For micro taxpayers with open cases, tax clearance will be issued within three (3) working days from the submission of the complete documentary requirements and the payment of outstanding liabilities, including penalties.

Commissioner Mendoza encouraged taxpayers who have already ceased operations to avail themselves of the streamlined process to avoid the continued accumulation of penalties and to properly update their registration records with the Bureau.

Read the full RMC here:https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%2047-2026.pdf

You paid your taxes.
You think you’re safe?

That’s where most small businesses get it wrong.

Payment is not compliance.

Here’s the Top 5 most common reasons businesses still get penalized:

1️⃣ Late or Non-Filing of Returns – Even zero income requires filing. The system automatically flags missing returns.

2️⃣ Incorrect OR / Invoice Issuance – Wrong TIN, address, VAT label, or failure to issue receipts properly. Technical errors = real penalties.

3️⃣ Unregistered or Improper Books of Accounts – Books must be registered and properly maintained. Filing alone is not enough.

4️⃣ No Authority to Print (ATP) – Using receipts without approved ATP can trigger immediate findings.

5️⃣ Wrong VAT Status / Tax Type – Registered under the wrong category? That mismatch leads to assessments and adjustments.

The BIR doesn’t check effort.
They check compliance.
One technical mistake can cost more than the tax itself.
Are you compliant — or just confident?

Join us this January 30, 2026 | 8:00 AM, live via Zoom and Facebook Live for a FREE webinar to learn about the Registration of MICRO and SMALL Taxpayers.

Zoom Registration Link: https://bir-gov-ph.zoom.us/meeting/register/-klEQ2inRYi6b-2otwa40g

🎅 Santa’s exhausted and heading home—
📋 Examiners are coming "back" to town.

💡 Don’t wait for an LOA to arrive.
Verify, review, and update your tax filings early so when audit season comes, you’re confident—not anxious.

📩 Message us today and let our experts help you prepare your business—properly, professionally, and with confidence.

Grateful to work alongside EVERGROW BUSINESS SERVICES and to collaborate with business owners who openly share their experiences, ideas, and growth journeys.
While we provide tax and advisory services, we equally value the learning, insights, and perspectives that help us grow together. 🤝

When your client is an international accounting firm… and one of them has 35+ years of experience 😅📊

This morning, three of us from our tax and advisory company met with two expert CPAs from our client’s team. Daghan kaayo ug taxes to discuss, and every suggestion gets a double-check—because these are not just any CPAs, these are experts!

Challenging, yes… but truly wonderful to have them as our client. We’re very grateful for their advice and insights—not just for their firm, but also for helping us improve ours. 🙏🧾

GOOD NEWS for MICRO ENTERPRISES! 📢
The SEC has simplified compliance for micro enterprises—resulting in lower costs and fewer regulatory requirements for small businesses.

📄❌ Audited Financial Statements are no longer required, helping you save on audit fees
✅ Your management-prepared Financial Statements must still be submitted to the SEC
✍️ These must be accompanied by a Statement of Management’s Responsibility (SMR), signed under oath

👉 This means simpler, faster, and more cost-efficient compliance, while remaining fully SEC-compliant.

📌 Important note:
The SEC exemption applies to SEC filings only. For BIR purposes, audited Financial Statements may still be required if your gross annual sales or receipts exceed ₱3 million, regardless of the SEC exemption.

👉 SEC and BIR have separate compliance rules—one exemption does not automatically apply to the other.

📣 𝗦𝗘𝗖 𝗲𝘅𝗲𝗺𝗽𝘁𝘀 𝗺𝗶𝗰𝗿𝗼 𝗲𝗻𝘁𝗲𝗿𝗽𝗿𝗶𝘀𝗲𝘀 𝗳𝗿𝗼𝗺 𝘀𝘂𝗯𝗺𝗶𝘁𝘁𝗶𝗻𝗴 𝗮𝘂𝗱𝗶𝘁𝗲𝗱 𝗙𝗦

Micro enterprises are now exempted from submitting audited financial statements as part of their reportorial requirements, as the Securities and Exchange Commission (SEC) moves to streamline compliance and reduce regulatory burdens for small companies.

The Commission on January 20 issued Memorandum Circular No. 4, Series of 2026, providing the Amendments to the Application and Definition of Terms under Revised Rule 68 of Republic Act No. 8799, or the Securities and Regulation Code (SRC), in Relation to the Adjustment of the Audit Threshold.

The memorandum circular exempts both stock and nonstock corporations with total assets or liabilities not exceeding P3 million from submitting audited financial statements.

Previously, only stock and nonstock corporations with total assets or liabilities less than P600,000 were exempted from mandatory audit.

🔗 Read the full Memorandum Circular here: https://www.sec.gov.ph/mc-2026/sec-mc-no-04-series-of-2026

𝗕𝗜𝗥 Launches First-Ever Interactive Digital Tax Calendar for 2026

The BIR has launched its 2026 Interactive Digital Tax Calendar (RMC No. 110-2025), an online tool to help taxpayers and practitioners track deadlines, manage filings, and stay compliant. Accessible via www.bir.gov.ph, the calendar features a user-friendly interface with clickable dates, daily tax reminders, and quick links to BIR Forms, Directory, Authorized Agent Banks, and social media accounts.

𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗼𝗻 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄
🏠 Home – full-year view of all twelve months
📅 Tax Deadlines – daily tax reminders
🔗 Links – quick access to BIR Forms, Directory, Authorized Agent Banks per RDO, and social media
📄 Forms – list of BIR Forms (PDF) with filing frequency and deadlines
🧭 Guide – instructions on navigating the calendar
☎️ Contacts – BIR National Office contact details

Access the calendar here: https://tinyurl.com/2026BIRDigitalTaxCalendar

The tax practitioners of Davao City warmly welcome our new Revenue District Officer of RDO 113A – West Davao City, Mr. Joseph Melchor “Joepet” Eballa.

We look forward to working hand in hand in strengthening transparency, professionalism, and effective tax administration. With your leadership, we are hopeful for a closer collaboration between the Bureau of Internal Revenue and the tax practitioners in our district—for the benefit of our taxpayers and our community.

Daghang salamat, ug malipayong pag-abot sa Davao, Sir Joepet.
Wishing you a fruitful and meaningful term in service to the public and to nation-building. 🇵🇭