BIR grants P84.5M tax relief to micro taxpayers

THE Bureau of Internal Revenue (BIR) has approved the reduction of ₱84.5 million in tax debts and penalties owed by micro taxpayers in the first two months of a one-time relief program.

The One-Time Abatement Program for Micro Taxpayers was created under Revenue Regulations 4-2026. Abatement refers to the reduction or cancellation of tax debts and penalties.

The BIR said Tuesday that 1,352 micro taxpayers had filed 6,234 applications as of Sept. 18.

Of these, 5,000 had been approved. These covered P84.509 million in tax debts and penalties. Participating taxpayers paid P24.815 million in fees to qualify for the relief.

“We want to make sure that taxpayers who qualify know that this relief is available to them,” BIR Commissioner Charlito Martin Mendoza said.

The program covers qualified micro taxpayers with unpaid tax accounts, pending tax assessments, or cases involving failure to file tax returns as of Dec. 31, 2025. It includes taxpayers who stopped filing returns after closing their businesses.

Micro taxpayers whose basic taxes and penalties total no more than P80,000 for a taxable year may apply, subject to the program’s requirements.

Approved applicants must pay a P5,000 fee for every taxable year covered.

Mendoza said the program would help taxpayers settle their debts, correct their records, and comply with tax rules again.

The BIR earlier said the program was intended to ease the financial burden of old tax cases. It also supports government efforts to simplify business closures and remove inactive registrations from BIR records.

Applications are still accepted until Dec. 31.

Mendoza urged qualified taxpayers to apply before the deadline, saying the program gives them an opportunity to settle their debts, clear old tax records and resume compliance.