Photo credit: BIR

Micro business owners and taxpayers with unresolved tax issues now have a chance to settle their obligations and start fresh under a new one-time tax abatement program launched by the Bureau of Internal Revenue (BIR).

The program, outlined under Revenue Regulations No. 4-2026 issued on June 22, allows qualified micro taxpayers to resolve delinquent tax accounts, assessments, and open stop-filer cases until December 31, 2026.

To qualify, taxpayers must have annual gross sales of not more than P3 million, while their total basic tax liabilities and/or penalties for a taxable year should not exceed P80,000. The program covers tax cases that existed as of December 31, 2025, including disputed and undisputed assessments, delinquent accounts, and stop-filer cases—even for taxpayers who have already ceased business operations.

BIR Commissioner Charlito Martin R. Mendoza encouraged eligible taxpayers to take advantage of the initiative, saying it aims to help small business owners move forward without the burden of old tax issues.

“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 move, describing it as part of the government's ongoing efforts to make doing business easier for Filipinos.

“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.

Under the program, applicants must file their request with the Revenue District Office that has jurisdiction over their area and pay a one-time abatement fee of P5,000 for every approved application. Once the requirements are met, the BIR will issue a Certificate of Availment confirming that the taxpayer's covered case has been resolved and officially closed.

The tax relief program complements the BIR's earlier reforms that simplified business closure procedures, including faster processing of tax clearances for qualified cases. According to Mendoza, these measures are intended to help taxpayers clear dormant records, settle outstanding obligations, and maintain accurate tax registrations moving forward.