03/07/2026
Let’s clarify one common misunderstanding about the BIR Abatement Program.
The P5,000 is NOT a one-time payment that automatically covers all your open tax years.
The regulation provides that the application is made per taxable year. If your 2024 tax liabilities qualify, that’s one application. If your 2025 liabilities also qualify, that’s another application. Each accepted application has a corresponding P5,000 fee.
On the other hand, if you have several tax types (Income Tax, VAT, Withholding Tax, etc.) within the same taxable year, they may be included in one application, subject to the requirements of RR No. 4-2026.
As always, read the regulation carefully. A small misunderstanding can lead to costly mistakes.
Photo credit to Bureau of Internal Revenue Philippines