The Bureau of Internal Revenue (BIR) has issued Revenue Regulation (RR) 4-2026, establishing a one-time tax abatement program for qualified micro taxpayers. The program allows eligible taxpayers to settle delinquent accounts, outstanding assessments, and open stopfiler cases through the payment of a fixed abatement fee. This simplified mechanism aims to enable taxpayers to regularize their tax records and mitigate the financial burden of accumulated taxes, interest, and penalties.
Covered Cases
Micro taxpayers are defined as those whose gross sales for the year are less than P3,000,000. The following cases of micro taxpayers with delinquent or assessed basic tax and/or penalties of not more than P80,000, existing as of Dec. 31, 2025, may be subject to abatement:
- Delinquent accounts;
- Cases with administrative protest pending in the BIR Regional Office, Revenue District Office (RDO), Appellate Division of the Legal Service, Collection Service, Enforcement Service, and other offices in the National Office;
- Tax collection cases filed with the courts;
- Tax cases under dispute before the Department of Justice and the courts, including cases not yet final and executory;
- Cases with pending requests for compromise settlement under evaluation by the appropriate review bodies;
- Cases with pending requests for abatement or cancellation of internal revenue tax liabilities under RR 13-2001;
- Criminal violations not yet filed with the courts, such as those under the Run After Tax Evaders Program of the BIR and other tax fraud cases, subject to the approval of the BIR Commissioner or his duly authorized representative;
- “Accounts payable or due to BIR” recorded or acknowledged in the taxpayers’ books of accounts; and
- Cases where no basic tax is due but penalties remain outstanding.
Application Process
Qualified taxpayers availing of the abatement shall manually file an application for abatement on a per taxable year basis, using the One-Time Abatement for Micro Taxpayers Application Form, with the RDO having jurisdiction over the taxpayer.
Abatement Fee
Upon acceptance of the application, the qualified taxpayer shall pay a P5,000 abatement fee using BIR Form 0605, either electronically or manually, within five working days from the filing of the application. The taxpayer shall submit proof of payment to the RDO within five working days from the date of payment. In case of withdrawal or denial of the application, the abatement fee shall not be refundable but shall be applied as partial payment to the taxes and/or penalties applied for abatement. Failure to submit proof of payment within the required period voids the application, without prejudice to re-filing.
Timeline and Effectivity
Qualified taxpayers can avail of the abatement until Dec. 31, 2026, unless extended. RR 4-2026 is effective on July 7, 2026, or 15 days following its publication in the Official Gazette or the BIR Official Website, whichever comes first.
Source: P&A Grant Thornton Certified Public Accountants
