PCCI welcomes BIR’s streamlined closure rules

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

MANILA, Philippines — The country’s largest business organization welcomed the Bureau of Internal Revenue (BIR)’s streamlined guidelines for closure of businesses, with the move seen to strengthen ease of doing business.

In a statement yesterday, the Philippine Chamber of Commerce and Industry (PCCI) said that the simplified and streamlined guidelines and procedures for the closure and/or cancellation of business registration under BIR Revenue Memorandum Circular 047-2026 is a timely and business-responsive reform.

“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 Ferdinand Ferrer said.

The group said the initiative complements the objectives of the Ease of Paying Taxes Act and emphasizes the importance of supporting enterprises throughout the entire business life cycle or from business registration and operation to proper closure.

It added that a simplified closure process will help 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,” PCCI director for taxation Alfredo Yao said.

PCCI also welcomed the provision that micro taxpayers would not be subject to mandatory audit for closure and/or cancellation of business registration.

For the group, this will help make the closure process faster and more predictable for taxpayers that have already ceased operations.

At the same time, it preserves the BIR’s authority to determine any outstanding tax liabilities in accordance with the circular.