23/06/2026
PRESS RELEASE
BIR Launches One-Time Tax Abatement Program for Micro Taxpayers, Giving Micro Businesses and Stop-Filers a Fresh Start
The Bureau of Internal Revenue (BIR) has launched a one-time tax abatement program for micro taxpayers, providing micro businesses and stop-filers the opportunity to settle outstanding tax liabilities, update their records, and begin anew with a clean slate.
Under Revenue Regulations No. 4-2026, issued on June 22, 2026, the BIR established the guidelines and procedures for qualified micro taxpayers to avail of a one-time abatement of taxes and/or penalties related to delinquent accounts, assessments, and open stop-filer cases. Eligible taxpayers may apply for the program until December 31, 2026.
The initiative covers micro taxpayers with annual gross sales not exceeding ā±3,000,000 and total basic tax liabilities and/or penalties not exceeding ā±80,000 per taxable year. Covered cases include delinquent accounts, assessmentsāwhether preliminary, final, disputed, or undisputedāand open stop-filer cases, including those involving taxpayers who have already ceased operations. Only liabilities existing as of December 31, 2025, are eligible.
BIR Commissioner Charlito Martin R. Mendoza encouraged qualified taxpayers to take advantage of the program, noting that it supports President Ferdinand R. Marcos Jr.ās directive to simplify compliance and make government services more accessible.
āThis program provides micro taxpayers with a chance to move forward. Those with unresolved tax obligations, delinquent accounts, assessments, or stop-filer cases can now settle these issues without facing a significant financial burden, update their records, and regain compliance,ā Mendoza said.
Finance Secretary Frederick D. Go welcomed the initiative as part of the administrationās ongoing efforts to improve the ease of doing business.
āOur goal is to foster a more taxpayer-friendly and business-friendly environment while helping micro enterprises address long-standing tax concerns and maintain proper compliance. By resolving old liabilities and updating records, we remove obstacles to compliance and encourage broader participation in the formal economy,ā Go said.
The regulations complement Revenue Memorandum Circular No. 47-2026, which introduced simplified and streamlined procedures for closing and canceling business registrations with the BIR. Under the circular, qualified taxpayers may obtain tax clearances in as little as three days.
Mendoza emphasized that many micro taxpayers have already ceased operations but still carry unresolved tax obligations or inactive registrations. He noted that the tax abatement program works alongside the simplified business closure process by reducing the financial burden associated with settling old tax liabilities.
āTogether, these reforms make it easier for taxpayers to close lingering cases, organize their records, and move forward,ā Mendoza added.
To avail of the program, qualified taxpayers must submit an application for abatement to the Revenue District Office (RDO) with jurisdiction over them and pay a one-time abatement fee of ā±5,000 for each approved application. Once all requirements are satisfied, the RDO will issue a Certificate of Availment confirming participation in the program and the closure of the covered case.
Through this initiative, the BIR aims to help taxpayers regularize their records, resolve dormant cases, and settle outstanding obligations, ultimately promoting voluntary compliance and maintaining more accurate taxpayer records.
The full text of Revenue Regulations No. 4-2026 may be accessed at:
[https://tinyurl.com/BIRRR4-2026](https://tinyurl.com/BIRRR4-2026)
