THE Bureau of Internal Revenue (BIR) is looking to expand its one-time tax abatement program for small businesses after nearly 4,000 micro taxpayers benefited from the initiative.
BIR Commissioner Charlito Martin Mendoza said the agency was studying the proposed expansion to cover small taxpayers with annual gross sales of P3 million to below P20 million, extending the relief beyond the micro taxpayers currently covered.
“We have seen from the level of availment that this relief is helping taxpayers settle covered obligations and clean up their tax records,” he said.
“We are now looking at expanding the one-time tax abatement to include small taxpayers, or those with annual gross sales of P3 million to below P20 million,” Mendoza added.
The BIR said that it had recorded 3,929 beneficiaries under the program as of Oct. 24, four months after its implementation.
The agency said it had received 17,101 applications, of which 15,050 had been approved.
Of the total P266.79 million in taxes and penalties abated, P42.05 million represented basic taxes, while P224.74 million consisted of compromise penalties.
Mendoza noted that the level of participation showed the targeted tax relief could encourage taxpayers to settle their covered obligations and address unresolved issues in their tax records.
Under the existing program, qualified micro taxpayers with covered basic taxes and/or penalties totaling not more than P80,000 for a taxable year may apply for abatement upon payment of a P5,000 abatement fee, subject to prescribed conditions.
The program covers qualified micro taxpayers with delinquent accounts, preliminary or final assessments, whether disputed or not, and open stop-filer cases as of Dec. 31, 2025.
It also covers eligible cases involving taxpayers who have ceased business operations.
To make the process more convenient, the BIR has updated its Offline eBIRForms Package to support abatement payments through BIR Form 0605.
“Our Revenue Regions and Revenue District Offices will continue reaching out to qualified micro taxpayers and assisting them with availment. We want to make sure that those who qualify for this relief know that it is available and know where to go for assistance,” Mendoza said.
