As a freelancer, life and income can change fast—you might stop taking clients, go full-time at a company, or shift careers. But if your BIR Certificate of Registration (COR) remains active, the government still considers you in business. That means you’re expected to file taxes, even if you’re not earning. If you miss those filings, penalties stack up.
That’s why knowing how to close your COR on BIR is essential for avoiding future headaches.
What Is a COR and Why You Need to Close It
The Certificate of Registration (COR) from the Bureau of Internal Revenue (BIR) is your official proof that you’re registered as a self-employed or business taxpayer. It gives you the legal right to issue official receipts and operate under the law.
But if you stop freelancing or close your business without canceling your COR, the BIR will continue to expect:
- Quarterly tax filings
- Annual income tax returns
- Books of account updates
Failure to comply results in open cases, penalties, and even tax audits. Closing your COR officially ends your tax obligations as a business or self-employed professional.
Why Closing Your COR Is Important
For freelancers and small business owners, closing your COR means:
- You stop accumulating penalties and surcharges.
- You avoid future non-filing notices.
- You clear your name for future loans, visas, and registrations.
- You can register again later if you restart your freelancing journey.
This process protects your financial health and legal status.
How to Close COR on BIR: Step-by-Step
Here’s a clear guide on how to close your COR the right way:
✅ Step 1: Go to Your Assigned RDO
Visit the Revenue District Office where you are registered. Bring a valid ID and a copy of your COR (BIR Form 2303).
✅ Step 2: Submit BIR Form 1905
Fill out Form 1905 (Application for Registration Information Update). Under “Cancellation/Closure,” tick the boxes related to:
- Business closure
- Retirement of business/profession
State your reason clearly (e.g., “No longer practicing as a freelancer”).
✅ Step 3: Secure a Tax Clearance Certificate
Before they approve closure, the BIR will check if you have:
- Open cases
- Unpaid penalties
- Missing tax returns
You’ll need to file and pay any missed returns before they cancel your registration.
✅ Step 4: Submit Books and Receipts for Inventory
You must return:
- Unused official receipts
- Books of accounts
- Inventory of remaining receipts (if any)
✅ Step 5: Wait for BIR Confirmation
Once everything is cleared, the BIR will officially cancel your COR. Ask for a copy of the cancellation document for your records.
When Should You Close Your COR?
Close your COR if:
- You are no longer earning income from freelance or business work.
- You switched to full-time employment with taxes withheld.
- You’re migrating or won’t be using your COR in the near future.
- You want to restart clean at a later time.
Don’t wait until the BIR sends a letter. Do it proactively to avoid issues.
Tips for Freelancers Closing Their COR
- Do it before the year ends to avoid next year’s filing requirements.
- File all pending tax returns before requesting cancellation.
- Keep digital and printed copies of everything submitted.
- If unsure, consult a tax consultant or accountant to avoid mistakes.
- Use the time to also close DTI, Barangay, or Mayor’s permits if applicable.
Closing your COR with the BIR is more than just paperwork—it’s a smart financial decision. It saves you from stress, surprise penalties, and legal trouble. If you’re done freelancing (even for now), make it official. Your future self will thank you.
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