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    Application For Closure of Business

    Uploaded by

    allan
    1. This document outlines the procedures for closing a business and cancelling a Tax Identification Number (TIN) with the Bureau of Internal Revenue (BIR) in the Philippines. 2. It details the documentary requirements needed like an inventory of goods, unused receipts, permits, and notices of closure. 3. It also describes different procedures depending on if the business owner died and whether they had estate tax liabilities, including updating the TIN status, filing short-term tax returns, and investigating tax liabilities before issuing a tax clearance.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Application For Closure of Business

    Uploaded by

    allan
    206 views2 pages
    1. This document outlines the procedures for closing a business and cancelling a Tax Identification Number (TIN) with the Bureau of Internal Revenue (BIR) in the Philippines. 2. It details the documentary requirements needed like an inventory of goods, unused receipts, permits, and notices of closure. 3. It also describes different procedures depending on if the business owner died and whether they had estate tax liabilities, including updating the TIN status, filing short-term tax returns, and investigating tax liabilities before issuing a tax clearance.

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    closure

    Original Title

    Application for Closure of Business

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    1. This document outlines the procedures for closing a business and cancelling a Tax Identification Number (TIN) with the Bureau of Internal Revenue (BIR) in the Philippines. 2. It details the documentary requirements needed like an inventory of goods, unused receipts, permits, and notices of closure. 3. It also describes different procedures depending on if the business owner died and whether they had estate tax liabilities, including updating the TIN status, filing short-term tax returns, and investigating tax liabilities before issuing a tax clearance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    206 views2 pages

    Application For Closure of Business

    Uploaded by

    allan
    1. This document outlines the procedures for closing a business and cancelling a Tax Identification Number (TIN) with the Bureau of Internal Revenue (BIR) in the Philippines. 2. It details the documentary requirements needed like an inventory of goods, unused receipts, permits, and notices of closure. 3. It also describes different procedures depending on if the business owner died and whether they had estate tax liabilities, including updating the TIN status, filing short-term tax returns, and investigating tax liabilities before issuing a tax clearance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    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.

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