THE Philippine Chamber of Commerce and Industry (PCCI) on Friday commended the Bureau of Internal Revenue (BIR) for speeding up the process of terminating a business operation.
“This initiative directly responds to the needs of the business community,” PCCI President Ferdinand Ferrer said. “A clear, simplified and timely process for closing business registration gives taxpayers a fair opportunity to properly settle their records and move forward without the unnecessary accumulation of penalties.”
Revenue Memorandum Circular 47-2026 outlines updated guidelines covering the filing, documentary requirements, tax clearance issuance and cancellation procedures for businesses permanently ceasing operations.
Under its provisions, taxpayers without open cases and whose gross sales for the immediately preceding taxable year do not exceed P3 million, or whose gross assets upon retirement do not exceed P8 million, may receive tax clearance within three working days from submission of complete documentary requirements.
Taxpayers with pending audits under a BIR letter of authority, open cases or tax liabilities beyond the prescribed thresholds will undergo further verification and audit procedures before closure applications can be completed.
“This is a practical and meaningful reform for taxpayers. By simplifying the closure process and preventing the further accumulation of penalties upon complete submission of requirements, the BIR is helping taxpayers regularize their records while encouraging greater voluntary compliance,” said Alfredo Yao, PCCI director for taxation.
The PCCI also lauded the provision that micro taxpayers shall not be subject to mandatory audit for closure and/or cancellation of business registration.
“We appreciate this development. This is something PCCI has been working on for a long time, especially in light of the countless difficulties faced by micro, small and medium enterprises that were affected by the Covid-19 pandemic and were no longer able to sustain their businesses. This reform is a big relief for them,” PCCI chairman for taxation Benedicta Du-Baladad said.
The business group said it is looking forward to continuing its collaboration with the BIR through the Partnership with Multi-Sectoral Group and other relevant platforms.
“We remain committed to supporting reforms that improve the taxpayer experience, strengthen voluntary compliance and contribute to a more enabling business environment in the country,” PCCI said.