The Bureau of Internal Revenue (BIR) has introduced a one-time abatement program enabling qualified micro taxpayers to resolve outstanding tax liabilities and penalties at a reduced cost.
Program details and eligibility
Under Revenue Regulations No. 4-2026, micro taxpayers with gross annual sales not exceeding P3 million and total basic tax liabilities and/or penalties of up to P80,000 per taxable year may apply for the program until Dec. 31, 2026.
The measure covers delinquent accounts, disputed or undisputed assessments, and open stop-filer cases, including those involving businesses that have already ceased operations. Eligible liabilities must relate to cases existing as of Dec. 31, 2025.
Application process and fee
Applicants must file with the appropriate Revenue District Office and pay a one-time abatement fee of P5,000 for each approved application. A Certificate of Availment will be issued upon compliance, confirming the closure of the covered case.
Officials' statements
BIR Commissioner Charlito Martin Mendoza said the initiative supports the administration’s efforts to simplify tax compliance and make government services more accessible. He urged eligible taxpayers to take advantage of the program to settle old obligations, update their records, and move forward as compliant taxpayers. Mendoza added that the measure would particularly help former business owners with unresolved tax issues by reducing the financial burden of closing lingering cases.
Finance Secretary Frederick Go said the program forms part of the government’s broader push to improve ease of doing business and encourage greater participation in the formal economy by helping micro enterprises resolve outstanding tax concerns.
