Tax abatement opens for micro taxpayers

The Bureau of Internal Revenue has opened a one-time tax abatement program for micro taxpayers, offering micro businesses and stop-filers a chance to settle outstanding tax liabilities, clean up their records and resume compliance with a clean slate.

The program was prescribed under Revenue Regulations No. 4-2026, issued on June 22, 2026.

The regulations set the guidelines and procedures for the one-time abatement of taxes and penalties for qualified micro taxpayers with delinquent accounts, assessments and open stop-filer cases.

Qualified applicants may avail themselves of the program until Dec. 31, 2026.

The BIR said the program covers micro taxpayers whose gross sales for the year do not exceed PHP 3,000,000.

The covered total basic tax liabilities and penalties must not exceed PHP 80,000 for a taxable year.

Eligible cases include delinquent accounts and assessments, whether preliminary or final and whether disputed or not.

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

Covered liabilities must involve cases existing as of Dec. 31, 2025.

BIR Commissioner Charlito Martin R. Mendoza said the measure supports President Ferdinand R. Marcos Jr.’s directive to ease compliance and make government services more accessible for the public.

“This is an opportunity to start with a clean slate. If you are a micro taxpayer with old tax obligations, delinquent accounts, assessments, or stop-filer cases, I encourage you to avail of this program. It is meant to help you settle past obligations without a heavy financial burden, update your records, and move forward as a compliant taxpayer,” Commissioner Mendoza said.

Finance Secretary Frederick D. Go welcomed the program as part of the administration’s continuing Ease of Doing Business reforms.

“We aim to create a more taxpayer-friendly and business-friendly environment while helping micro businesses resolve lingering tax issues and maintain good compliance practices. By helping micro taxpayers resolve old liabilities and update their records, we are removing barriers to compliance and encouraging greater participation in the formal economy,” Secretary Go said.

The BIR said the regulations complement Revenue Memorandum Circular No. 47-2026, which prescribed simplified and streamlined guidelines for the closure and cancellation of business registration with the agency.

Under that circular, tax clearances may be issued in as fast as three days for qualified cases.

“Many micro taxpayers have already stopped operating but continue to carry unresolved tax obligations or inactive registrations. We have already simplified the process of properly closing a business, and this one-time abatement program complements it by easing the financial burden of settling old tax liabilities for our micro taxpayers. Together, these reforms make it easier to close lingering cases, put their records in order, and move forward,” Mendoza said.

Qualified taxpayers must file an application for abatement with the Revenue District Office that has jurisdiction over them.

Approved applicants must pay a one-time abatement fee of PHP 5,000 for each approved application.

After compliance with the requirements, the concerned Revenue District Office will issue a Certificate of Availment as proof that the taxpayer availed themselves of the program and that the covered case has been closed.

The program forms part of the BIR’s broader effort to improve voluntary compliance, reduce dormant cases and keep taxpayer records cleaner and more accurate.

The BIR’s official 2026 issuances page lists Revenue Regulations No. 4-2026 as prescribing guidelines and procedures for the one-time abatement of taxes and penalties for micro taxpayers.

The BIR’s 2026 circulars page also lists Revenue Memorandum Circular No. 47-2026 as covering simplified and streamlined procedures for the closure and cancellation of business registration with the bureau.