The Philippine Chamber of Commerce and Industry (PCCI) has welcomed the Bureau of Internal Revenue’s (BIR) new streamlined business closure rules, calling them a major relief for micro, small, and medium enterprises (MSMEs) burdened by lengthy, costly tax compliance procedures.
Revenue Memorandum Circular No. 47-2026 simplifies documentary requirements for closing a business, suspends penalties once closure documents are submitted, speeds up tax clearances for qualified taxpayers, and exempts micro businesses from mandatory audits during closure.
PCCI emphasized that the reforms address long-standing frustrations, particularly for businesses shuttered during the COVID-19 pandemic, which often continued to accrue penalties and unresolved obligations due to complex closure procedures.
“Taxpayers now have a fair chance to settle obligations without unnecessary penalties,” said PCCI President Perry A. Ferrer. PCCI taxation chair Benedicta Du-Baladad described the circular as a “significant relief for struggling MSMEs.”
The business group noted the reforms align with the Ease of Paying Taxes Act, supporting companies from registration to closure, encouraging voluntary compliance, and boosting confidence in the country’s regulatory environment.
