Closing a business in the Philippines may no longer be as complicated as it once was, after the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 47-2026 on May 19. According to a report by BusinessWorld , the circular introduces revised guidelines that make it easier for businesses to process their applications for closure and/or cancellation of taxpayer registration.
The new rules aim to streamline the closure process by reducing documentary requirements and clarifying procedures. Businesses that have ceased operations or intend to dissolve can now comply with fewer steps, potentially cutting down on the time and cost involved in finalizing their tax obligations with the BIR.
RMC No. 47-2026 is expected to benefit small and medium enterprises in particular, as these businesses often face administrative burdens when closing. The circular reflects the BIR's ongoing efforts to improve taxpayer service and reduce red tape, aligning with the national government's ease of doing business initiatives.