SOURCE: https://www.facebook.com/birgovph
The Bureau of Internal Revenue (BIR) has launched a one-time tax abatement program for micro taxpayers, giving micro businesses and stop-filers a chance to settle outstanding liabilities, tidy up their records, and begin anew.
Under Revenue Regulations No. 4-2026, issued on June 22, 2026, the BIR sets the rules for a single abatement of taxes and/or penalties for eligible micro taxpayers with delinquent accounts, assessments, and open stop-filer cases. Applications will be accepted until December 31, 2026.
The program applies to micro taxpayers with annual gross sales not exceeding Three Million Pesos (P3,000,000) and total basic tax liabilities and/or penalties not exceeding Eighty Thousand Pesos (P80,000) per taxable year. Covered cases include delinquent accounts and assessments—preliminary or final, whether contested or not—as well as open stop-filer cases, including those of taxpayers who have already ceased operations. Liabilities must relate to cases existing as of December 31, 2025.
Commissioner Charlito Martin R. Mendoza urged qualified taxpayers to participate, noting that the initiative aligns with President Ferdinand R. Marcos Jr.’s directive to simplify compliance and improve access to government services 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 ongoing 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.
These regulations complement Revenue Memorandum Circular No. 47-2026, which introduced simplified, streamlined procedures for business closure and BIR registration cancellation, enabling issuance of tax clearances 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 added.
Qualified taxpayers must file an abatement application with their Revenue District Office and pay a one-time abatement fee of Five Thousand Pesos (P5,000) for each approved application. Once requirements are met, the RDO will issue a Certificate of Availment confirming participation and closure of the covered case.
By enabling taxpayers to regularize records, resolve dormant cases, and clear long-standing obligations, the BIR aims to bolster voluntary compliance and maintain cleaner, more accurate taxpayer data.
Below is the full Revenue Regulation
