BIR simplifies business registration, removes mayor's permit requirement

The Bureau of Internal Revenue (BIR) has simplified its documentary requirements for business registration as part of efforts to cut red tape and speed up the process.

These changes, effective August 1, 2025, align with the Ease of Doing Business and Efficient Government Delivery Act of 2018.

The BIR has removed the mayor's permit from the list of required documents for business registration.

Revenue Memorandum Circular (RMC) No. 81-2025 emphasizes a transition to a deeper understanding of business integrity, redefining deductibility as a reflection of ethical practices.

This circular outlines stricter requirements for documentation, relevance, and reasonableness of expenses for business expense deductions.

RMC 81-2025 reiterates the criteria for and guidelines on the deductibility of ordinary and necessary business expenses under Section 34(A)(1)(a) of the National Internal Revenue Code (NIRC) of 1997, as amended.

Businesses are encouraged to adopt a proactive approach to tax management, viewing compliance as a shared responsibility that fosters trust and accountability.