BIR micro taxpayer relief draws 6,234 applications

MANILA — The Bureau of Internal Revenue said 1,352 micro taxpayers filed 6,234 applications for its one-time tax abatement program during its first two months, as the government steps up efforts to help small taxpayers resolve old liabilities and return to tax compliance.

As of Sept. 18, 2026, the BIR had approved 5,000 of the applications, covering PHP 84,509,316.48 in tax liabilities and penalties, according to the agency.

Taxpayers had paid PHP 24,815,000.00 in abatement fees for the approved applications.

The program gives qualified micro taxpayers a less costly way to clear certain longstanding tax cases, potentially easing the financial burden on small businesses while allowing the government to close dormant or unresolved accounts and bring taxpayers back into the formal compliance system.

Under BIR rules implementing the Ease of Paying Taxes Act, a micro taxpayer is one with gross sales of less than PHP 3,000,000 in a taxable year. Gross sales for classification purposes cover business income and exclude compensation and certain other income.

“Availment gained momentum following President Ferdinand R. Marcos Jr.’s mention of the program in his State of the Nation Address and intensified information campaigns by our Revenue Regions. Upon the direction of Finance Secretary Frederick Go, we want to make sure that taxpayers who qualify know that this relief is available to them,” Commissioner Charlito Martin R. Mendoza said.

The BIR said its revenue offices have also been directed to proactively identify taxpayers who may qualify instead of waiting for them to approach the agency.

“Ang utos natin sa ating mga Revenue Regions at Revenue District Offices, huwag lang nating hintayin na lumapit sa atin ang taxpayers. Hanapin natin sa system kung sino ang qualified na maka-avail, reach out to them, and guide them in settling their covered liabilities, regularizing their records, and returning to compliance,” he added.

The BIR is implementing the program under Revenue Regulations No. 4-2026.

The regulations cover qualified micro taxpayers with delinquent accounts as of Dec. 31, 2025, as well as preliminary or final assessments existing as of the same date.

The program also covers open stop-filer cases, including cases involving taxpayers that have already ceased business operations.

The BIR said when it launched the program that the relief was intended in part to help micro taxpayers resolve lingering obligations and inactive registrations, complementing efforts to simplify the formal closure of businesses.

Micro taxpayers with delinquent or assessed basic taxes and/or penalties totaling no more than PHP 80,000 for a taxable year may apply for abatement, subject to the conditions under the regulations.

Once an application is approved, the taxpayer must pay an abatement fee of PHP 5,000 for each taxable year covered.

The amount of abatement fees reported as paid — PHP 24,815,000.00 — is PHP 185,000.00 below the PHP 25,000,000.00 that would result if a PHP 5,000 fee had been paid for each of the 5,000 approved applications. The BIR statement did not explain the difference, which may reflect the timing or status of fee payments.

Applications may be filed until Dec. 31, 2026.

“With the program available until December 31, 2026, we encourage taxpayers who qualify to avail while there is still time. This is an opportunity to settle covered liabilities, clean up old tax records, and move forward in compliance,” Commissioner Mendoza said.

The tax-abatement initiative forms part of a broader shift toward differentiated treatment of taxpayers under Republic Act No. 11976, or the Ease of Paying Taxes Act, which classifies taxpayers as micro, small, medium, or large based on gross sales and seeks to make tax administration more responsive to taxpayers’ circumstances.