Do You Know That You Still Need to File Tax Returns Even If Your Business Is Non-Operational?

Once the BIR issues your Certificate Of Registration (COR – BIR Form 2303) during the registration process, you will be required to regularly file all the Tax Returns from then on with the respective Revenue District Office (RDO) that has jurisdiction on your business location (pursuant to BIR RR 7-2012 Sec 10.5).

A business needs to be formally closed/canceled with the BIR on its registration in order not to file any more taxes, and the TIN will be determined active or inactive (RR 7-2012 Sec 11.2). Otherwise, there will be penalties for all those tax returns not filed from the time the business becomes non-operational or is not officially closed with the BIR. This is determined by the BIR thru their Open Case Monitoring System (CMS). Once determined, penalty rates can be as much as 1,000 pesos per tax return per month for that taxpayer.


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