https://www.bir.gov.ph/index.

php/registration-requirements/primary-
registration/application-for-registration-update.html

http://thefreelancepinoy.com/taxes-closure/

https://www.formsphilippines.com/guide/18/application-for-closure-of-business-
cancellation-of-tin-pursuant-to-section-236-of-the-national-internal-revenue-code-any-
registered-taxpayer-

APPLICATION FOR CLOSURE OF BUSINESS/CANCELLATION OF TIN

A. Venue

RDO where TIN is registered.

B. BIR Form

BIR FORM 1905 - Application for Registration Information Update for Updating /
Cancellation of Registration / Cancellation of TIN / New Copy of TIN Card / New Copy
of Certificate of Registration

C. Documentary Requirements

1. Notice of closure or cessation of business;

2. Notice of Death and Death Certificate, in case of death of an individual;

3. Estate Tax Return of the decedent, if applicable;

4. List of ending inventory of goods, supplies, including capital goods;

5. Inventory of unused sales invoices/official receipts (SI/OR);

6. Unused sales invoices/official receipts and all other unutilized accounting forms (e.g.,
vouchers, debit/credit memos, delivery receipts, purchase orders, etc.) shall be
physically submitted to the RDO where the Head Office is registered or where the
Authority to Print (ATP) was secured;

7. All business notices and permits as well as the COR shall be surrendered for
cancellation;

8. Other documents necessary to support the changes applied for.

D. Procedures
I. Death of Individual not subject to Estate Tax

1. In case of a decedent registered with the BIR who has no properties subject to estate
taxes, the heirs shall request for cancellation of the decedent’s TIN by accomplishing
BIR Form 1905.

2. Notice of Death and Death Certificate shall be submitted to the BIR district office
where the TIN of the decedent is registered.

3. An affidavit shall be submitted by the heirs stating that the decedent has no
properties subject to estate taxes.

4. The BIR district office shall notify the heirs, administrator or executor applying for
cancellation of decedent’s TIN of the status of the request within ten (10) days from
complete submission of the requirements.

II. Settlement of Estate Tax Liabilities

1. In case of death of an individual with properties subject to estate taxes and who was
previously registered in the ITS database, upon submission of Notice of Death and the
Death Certificate of the decedent, the BIR district office shall immediately modify and
update the status of the TIN of said decedent as “cancelled” and proceed with the
processing and issuance of the TIN of the estate upon application by the executor or
administrator.

2. If the TIN of such decedent is registered in another BIR district office, the receiving
BIR district office shall inform the BIR district office concerned of the fact of such
taxpayer’s death by furnishing a copy of the decedent’s Death Certificate. Such BIR
district office shall then perform the update as stated in this section.

3. The new TIN shall be used in the filing of the estate tax return of the decedent, as
well as in the filing of other applicable tax returns (e.g. Income, VAT/ Percentage Tax,
etc.) if the estate is under judicial settlement.

4. In case the decedent was engaged in business, the heirs/executor/administrator

shall, aside from submitting the Notice of Death and Death Certificate submit a short-
term income tax return covering the period January 1 until the date of death.

The said return shall be filed within sixty (60) days from the date of death, unless the
heirs/administrator/executor shall request for an extension of time to file the same, but
not to exceed six (6) months or April 15 of the following year, whichever is earlier.

The TIN shall be cancelled once the decedent’s business operations including that
covered by the short-term return has been duly investigated for tax purposes.

5. Decedents with business registration shall be subject to immediate investigation by

the BIR office concerned to determine the decedent’s tax liabilities from his / her
business. If the business is registered in a BIR district office other than where the Estate
Tax Return is filed, the BIR district office which received such return shall inform the BIR
district office concerned in writing, either thru fax or via email, for their corresponding
action.

6. Such BIR district office shall issue a Tax Clearance for the decedent’s business
registration within ten (10) days from termination of its investigations and/or full
settlement of the taxpayer’s liabilities, if applicable.

III. Dissolution, Merger or Consolidation of Juridical Persons

1. All taxpayers who filed for cancellation of registration due to closure/cessation or

termination of business, except for branches, shall be subjected to immediate
investigation by the BIR office concerned to determine the taxpayer’s tax liabilities.

2. For juridical persons, the TIN shall be cancelled at the time of the dissolution, merger
or consolidation resulting to termination of their corporate existence through the
eventual cancellation of their registration with the BIR.

In case of business merger or consolidation, the TIN of the dissolved juridical persons
shall be tagged with “Ceased/Dissolved” status. If one of the parties survives, its TIN
must be retained, however if a new corporation shall be established, a new TIN shall be
issued to such new juridical entity.

3. The BIR district office of the HO of the dissolved entity shall inform all the other BIR
district office, where the branches are registered, of the closure/cessation of the
business.

4. To avoid generation of stop filer cases, the BIR district office, upon complete
submission by the taxpayer of the requirements shall:

a. “End date” the tax types of the taxpayer;

b. Destroy/shred in the presence of the taxpayer or his authorized representative, the
unutilized SI/ORs and other accounting forms by cutting them crosswise and lengthwise
at the middle thereof so that the same shall be divided into four (4), ensuring that the
same will no longer be used as originally intended; and
c. Return to the taxpayer the destroyed/shredded SI/ORs and other accounting forms
for burning and/or proper disposition.
d. The BIR distinct office shall issue a Tax Clearance to the taxpayer applying for
cancellation of TIN within ten (10) days from termination of its investigations and/or full
settlement of the taxpayer’s liabilities, if applicable
How to File for a Closure
of Business
MAY 15, 2013 BY STEF
This guide teaches you the steps and requirements needed to file a closure of
business (a.k.a. cessation of registration) with the BIR.
At some point in your career as a self-employed freelancing professional, things
have taken a turn that you have decided to close your freelance business.

For example, you’ve decided to transfer locations, or have other plans that
demand your attention. You see that you won’t be able to personally visit the
RDO for your monthly and quarterly filings, and you’re worried this might leave a
bad mark on your records with the BIR.

If you find yourself in a similar situation, you may want to consider filing for a
cessation of registration. Let’s take a look at what this means and the
requirements to do so.

What is Closure of Business?

Closure of business or a cessation of

registration means you want to close your business and stop filing taxes of any
kind to the BIR. This means you are not going to operate any longer as a self-
employed professional or a freelance business, and so are not obligated to pay
taxes further.

Ideally, you would simply file your monthly VAT or quarterly ITR as “No
Operation,” which is a lot simpler and easier to do. If you are transferring to a
different city or district, you can always file for a transfer of business location and
update your BIR 1905.

But, if you feel that you won’t be doing business again in the future, or there are
other bigger plans that you will eventually be engaged in, the best move may be to
file for a closure.

It is also important to note that you can close your business without removing
your status as a BIR-registered tax payer. If you foresee opening or re-registering
a new freelance business in the future, do not cancel your TIN number. There are
no monthly or yearly fees to have and keep one, plus you may want to update it
once you decide to reopen or register a new business.

NOTE: This post is ideally for freelancers who have registered as self-

employed professionals and who are operating under their own names.
If you have opened under a business name, you may need to visit other agencies
other than the BIR for your clearance requirements. This forum thread lists the
government agencies you may need to visit. Finally, if you have an accountant
filing your taxes, consult his or her advice before doing so.

BIR Requirements
While searching for information about this topic, I came across the BIR 1905
form available at the BIR website, wherein the requirements for specific updates
to your registration are listed.

Requirements are listed on page 2 of BIR 1905.

For cessation of business, make sure to have the following:

 Latest annual ITR filed before the deadline – make sure to file the
latest annual ITR before closing your business. This is to ensure that you
have paid all of your dues for the past year. File for closure 10 days after
deciding to close your business.
 Letter of closure addressed to the BIR – indicate that you are closing
your business and the effective date.
 Inventory of unused receipts – a list of the unused invoice stubs, can
be printed on ordinary bond paper.
 Unused receipts – surrendered to the BIR for destruction
 Books of accounts – your ledger, columnar books, etc.
 Certificate of registration – to be surrendered to the BIR
  BIR form 1905 – the form used to update your status as a tax payer.
 Accomplished routing sheet – a form wherein several BIR signatories
check your records and sign to indicate that you are cleared of any cases,
suspensions, or bad marks with the bureau.
 Filed income tax returns, monthly VAT (if you’re VAT-
registered), etc. – basically all of the papers you have submitted and that
the BIR stamped during filing.

Once you have all of the requirements, you can now begin the procedure of filing
for closure.

Take note that what follows may not exactly be as how it will turn out at your
respective Revenue District Office. Always ask the BIR officer-of-the-day for
information on how to file for a closure if you are not sure.  

1. With your requirements on hand, secure a routing sheet, which will be

used for your clearance as a tax payer. 
2. Ask the BIR officer to which department to acquire the first signature.
Once you have the signature, always ask to who you will proceed to next.
You would be going through collections, the head officer of the RDO,
documentations, etc. Follow in sequence to avoid any problems.
3. Once your routing sheet is complete, proceed to the BIR officer-of-the-day
to have them evaluate your annual ITR, books of accounts, and receipts.
4. The unused receipts must be destroyed with the BIR officer-of-the-day
present. Make sure that you are a witness to this to avoid any suspicion.
5. If you are cleared, s/he will sign the evaluation form and ask you to submit
the rest of the requirements.

And you’re done. It’s a very stressful process (in my opinion), but as long as you
have paid for all of your taxes and have submitted all of the requirements, you
shouldn’t have anything to worry about further.
Important Take-aways
Here are some things to remember to lessen the problems and hassles when filing
for a closure at the BIR:

 Make sure your ITR computations are “readable” and understandable to

the BIR. Even if you have paid for your annual ITR at the bank, any number
that isn’t written or printed properly will be questioned. 
 Avoid filing for a closure during rush hours to avoid waiting too long in
line.
 Bring both copies and originals of all of your files, including the very first
forms you have submitted to the BIR.
 Always ask for help if you find yourself lost in the middle of the procedure.
While they are strict, the BIR officers are willing to help.
 If you’d like information on how to file a closure for a traditional brick and
mortar business, Business Tips offers information and advice in “How to
Close a Business in the Philippines.”
 And finally, if you have specific questions about this procedure that the
post doesn’t cover, you can always call your respective RDO or seek advice
from the BIR officer-of-the-day, as they are the best people to turn to for
clarification.