The Philippine Chamber of Commerce and Industry welcomes the issuance of Revenue Memorandum Circular No. 47-2026 by the Bureau of Internal Revenue, which prescribes simplified and streamlined guidelines and procedures for the closure and/or cancellation of business registration with the BIR.
PCCI commended Commissioner Charlito Martin R. Mendoza and the BIR for this timely and business-responsive reform. The streamlined documentary requirements, the non-accrual of penalties for non-filing upon submission of complete closure requirements, and the faster release of tax clearances for qualified taxpayers under the Circular are significant steps toward reducing compliance burdens and improving the taxpayer experience.
“PCCI strongly supports this initiative of the BIR, as it directly responds to the needs of the business community. 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,” PCCI President Perry A. Ferrer said.
This initiative complements the objectives of the Ease of Paying Taxes Act and reinforces the importance of supporting enterprises throughout the entire business life cycle—from business registration and operation to proper closure. For many enterprises, particularly micro and small businesses, a simplified closure process helps prevent the continued accumulation of penalties, unresolved open cases, and administrative difficulties that may affect future business activity.
“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,” Mr. Alfredo M. Yao, PCCI Director for Taxation said.
PCCI also welcomed the provision that micro taxpayers shall not be subject to mandatory audit for closure and/or cancellation of business registration. This measure will help make the closure process faster, more predictable, and more accessible for taxpayers that have already ceased operations, while preserving the Bureau’s authority to determine any outstanding tax liabilities in accordance with the Circular.
“We very much appreciate this development. This is something PCCI has been working on for a long time, especially in light of the countless difficulties faced by MSMEs that were affected during the COVID-19 pandemic and were no longer able to sustain their businesses. This reform is a big relief for them.” Atty. Benedicta “Dick” Du-Baladad, PCCI Chairperson for Taxation, said.
PCCI looks forward to continuing its partnership with the BIR through the Partnership with Multi-Sectoral Group (PMSG) 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.
