Checklist for cancellation of business:

DTI:

1. Letter request signed by the owner

2. Affidavit of cancellation of the registered BN, stating the reason/s for the
cancellation and that the registered owner has no outstanding financial
obligation at the time of closure of establishment
3. Original copy of the BN certificate and the duplicate copy of the application
form (affidavit of loss if either the business name certificate and/or the
duplicate copy of the application form was lost)
BIR Form 1905 BIR Form 1905 Application for Registration Information Update
Where to File:
RDO where taxpayer is registered
How to File:
How/ Procedure
1) Taxpayer applicant files BIR Form 1905, together with the attachments at the
RDO where they are registered within ten (10) days from retirement of business.
2) Taxpayer files short period return for income tax purposes.
3) RDO verifies if taxpayer has open cases reflected in the Integrated Tax System
(ITS). If YES, ask taxpayer to submit required returns and pay the corresponding tax
due/s and penalties if any.
4) RDO verifies if taxpayer has delinquent cases at the Assessment, Collection, and
Legal Divisions of the Region;
5) RDO verifies if taxpayer has delinquent cases at the Collection Enforcement
Division, BIR National Office
6) RDO requests for Letter of Authority to investigate internal revenue taxes for all
un-audited taxable years prior to cancellation of business.
7) Assigned Case officer conducts investigations for period/s covered in the issued
Letter of Authority.
8) Taxpayer complies with requirements of audit and pays corresponding deficiency
taxes resulting from audit using Form 0605.
9) RDO issues tax clearance for closure of business.

10) RDO updates ITS and cancels TIN of taxpayer (for non-individual taxpayer).
Other Documentary Requirements:
1) Letter of request stating reason for termination of business
2) Original Certificate of Registration
3) Books of Accounts
4) Inventory List of Unused Receipts and Invoices
5) Unused Receipts and Invoices for cancellation