The Bureau of Internal Revenue (BIR) is offering a one-time tax and penalty abatement program for micro taxpayers, providing small businesses and self-employed individuals an opportunity to settle outstanding tax obligations.
Revenue Regulations (RR) 4-2026 established guidelines for the implementation of a tax and penalty abatement program covering qualified micro taxpayers with delinquent tax accounts, pending assessments and stop-filer cases.
“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,” BIR chief Charlito Martin Mendoza said in a statement on Monday.
“It is meant to help you settle past obligations without a heavy financial burden, update your records, and move forward as a compliant taxpayer,” he added.
The regulation allows eligible taxpayers to avail of a one-time abatement of taxes and penalties, subject to certain conditions and requirements.
The program covers micro taxpayers with annual gross sales of up to P3 million and total basic tax liabilities and/or penalties of up to P80,000 per taxable year.
It applies to delinquent accounts, preliminary or final tax assessments (whether disputed or not) and open stop-filer cases, including those involving businesses that have already ceased operations.
Eligible taxpayers have until December 31, 2026 to avail of the program. To qualify, the tax liabilities must be related to cases that existed as of December 31, 2025.
The regulation covers several categories including delinquent accounts, disputed assessments and stop-filer cases. Delinquent accounts generally refer to tax liabilities that have become final and executory and remain unpaid, while disputed assessments involve assessments that are still under protest or administrative review.
Stop-filer cases, meanwhile, pertain to taxpayers who have failed to file required tax returns for certain periods.
Even taxpayers who have already ceased business operations may qualify provided they meet requirements under the regulation. This is expected to benefit former business owners and self-employed individuals seeking to clear unresolved tax obligations and formally close their tax records.
Taxpayers wishing to avail of the program must file the required application and supporting documents.
Qualified taxpayers should file an application for abatement with the revenue district office (RDO) that has jurisdiction over them and pay a one-time fee of P5,000 for each approved application.
Once all requirements are met, the RDO will issue a certificate of availment confirming that the taxpayer has successfully availed of the program and that the covered tax case has been closed.
“Many micro taxpayers have already stopped operating but continue to carry unresolved tax obligations or inactive registrations,” 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,” he added.
NIÑA MYKA PAULINE ARCEO
