BIR Form 1905: updating or closing your registration

What Form 1905 is used for

Form 1905 is BIR's Application for Registration Information Update. An existing taxpayer who wants the 8% income tax rate for a new year can file it at the beginning of the taxable year to make that election.^[2]

It also appears in BIR's list for registering manual books of accounts at the RDO: two originals of Form 1905 with a new set of permanently bound books.^[3]

Other common uses are a change of business address, a new line of business, a change in tax types, or a change of registered name. File the update as soon as the change happens, so your COR shows the right details and your returns match.

Closing your business with Form 1905

BIR's closure checklist asks for Form 1905 in two originals, a list of ending inventory of goods, supplies and capital goods, an inventory of unused invoices and supplementary invoices together with the unused invoices and other unutilized accounting forms, and the original BIR notices and permits such as your Authority to Print, along with the original COR or electronic COR. A ₱30 loose documentary stamp is affixed to the Tax Clearance Certificate issued for the closure.^[1]

File with the RDO that issued your COR. Taxpayers who cancel their registration because of closure, except branches, are subject to immediate investigation to determine their tax liabilities.^[1]

Example: closing a small food stall

Example: a siomai stall owner in Caloocan decides to stop operating in March 2027. She files her final 2551Q and income tax returns, counts her remaining stock and lists it, gathers her unused invoice pads, and brings these with her original COR and Authority to Print to the RDO that issued the COR. BIR reviews her returns before issuing a tax clearance.^[1]

She also cancels her DTI business name and her mayor's permit, which BIR does not do for her. See closing a business and closing instead of renewing.

When you do not need Form 1905

You do not need to file an update just because your old COR shows the ₱500 Registration Fee. RR 11-2024 says those CORs keep their validity and the fee is no longer paid.^[4]

A temporary dip in sales also does not need a 1905. You keep filing your returns, even with low figures, until you either change your details or close.

Closure documents for BIR

Questions people ask

Where do I file Form 1905 to close my business?

With the RDO that issued your Certificate of Registration.

Can I use Form 1905 to switch to 8%?

Yes. An existing taxpayer can file Form 1905 at the beginning of the taxable year to elect the 8% rate. You may also select it on the first quarterly income tax return.

Will BIR audit me when I close?

BIR says taxpayers who cancel registration because of closure, except branches, are subject to immediate investigation of their tax liabilities.

How long does BIR closure take?

BIR's closure page does not give a processing time. Ask the RDO when you file, and keep your books ready for the review.