The Market Monitor Minding the Nation's Business
The Bureau of Internal Revenue (BIR) has rolled out a one-time tax abatement program aimed at helping micro taxpayers settle outstanding tax liabilities and update their records, giving them an opportunity to start with a clean slate.
Under Revenue Regulations No. 4-2026, issued on June 22, 2026, qualified micro taxpayers may avail themselves of the program until December 31, 2026. The initiative covers delinquent tax accounts, assessments, and open stop-filer cases existing as of December 31, 2025.
The program is open to micro taxpayers with annual gross sales not exceeding P3 million and whose total basic tax liabilities and/or penalties do not exceed P80,000 for a taxable year. It also covers taxpayers who have already ceased business operations but still have unresolved tax obligations or inactive registrations.
BIR Commissioner Charito Martin R. Mendoza said the program is designed to ease the burden on small taxpayers and encourage voluntary compliance.
“This is an opportunity to start with a clean slate,” Mendoza said, urging eligible taxpayers to take advantage of the initiative to settle past obligations, update their records, and move forward as compliant taxpayers.
Finance Secretary Frederick D. Go welcomed the measure, saying it supports the government’s ongoing Ease of Doing Business reforms and promotes a more taxpayer-friendly environment.
To avail of the program, qualified taxpayers must file an application with the Revenue District Office (RDO) that has jurisdiction over them and pay a one-time abatement fee of P5,000 for each approved application.
Upon compliance with the requirements, the concerned RDO will issue a Certificate of Availment confirming that the taxpayer has availed of the program and that the covered case has been closed.
The BIR said the initiative complements its earlier-issued guidelines that streamlined the procedures for the closure and cancellation of business registrations, particularly for inactive and dormant businesses.