The Bureau of Internal Revenue (BIR) has launched a one-time tax abatement program. The initiative aims to help micro businesses and stop-filers resolve past tax issues.
Revenue Regulations No. 4-2026 establishes the guidelines for the program. Qualified taxpayers can apply until December 31, 2026.
The program is open to taxpayers with gross sales under P3,000,000. It covers basic tax liabilities and penalties not exceeding P80,000 per taxable year. Eligible cases include delinquent accounts and open stop-filer cases existing as of December 31, 2025.
BIR Commissioner Charlito Martin R. Mendoza said the program supports the directive of President Ferdinand R. Marcos Jr. to ease tax compliance.
“This is an opportunity to start with a clean slate,” Commissioner Mendoza said. “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.”
Finance Secretary Frederick D. Go supports the initiative as part of broader 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,” Secretary Go said. “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.”
The program coincides with simplified rules for closing business registrations. Some taxpayers may now receive tax clearances in three days.
“Many micro taxpayers have already stopped operating but continue to carry unresolved tax obligations or inactive registrations,” Commissioner Mendoza said. “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.”
Applicants must file at their local Revenue District Office. The program requires a one-time fee of P5,000 for each approved application. Successful applicants will receive a Certificate of Availment to confirm their case is closed.
The BIR aims to promote voluntary compliance through this effort. It also hopes to maintain more accurate taxpayer records.
Micro Taxpayers Gets A Fresh Start
