Guidelines on the BIR One-Time Tax Abatement Program for Micro Taxpayers (BIR RR No. 004-2026)

What is the BIR one-time tax abatement program for micro taxpayers?

The Bureau of Internal Revenue (“BIR”) has launched a one-time abatement program for micro taxpayers, allowing them to settle outstanding tax liabilities through the issuance of Revenue Regulation No. 004-2026. This program gives small businesses, including those that have already ceased operations, an opportunity to clear their delinquent accounts, assessments, and open stop-filer cases.

This abatement program is a temporary relief measure and can be availed of until December 31, 2026 only.

Eligibility and Covered Tax Liabilities

To qualify for the program, the applicant must be a taxpayer whose gross sales for the year is less than Three Million Pesos (Php3,000,000.00). For mixed income-earners, “gross sales” shall refer only to business income. This relief also extends to micro taxpayers who have already ceased business operations but still carry outstanding liabilities with the BIR.

Regarding the threshold amount of the liability, the micro taxpayer’s outstanding tax liability and/or penalties must not exceed Eighty Thousand Pesos (Php80,000.00) for a taxable year. Further, this tax liability or penalty must have arisen from violations of the National Internal Revenue Code of 1997.

Who qualifies for the BIR one-time tax abatement program?

• Micro taxpayers whose gross sales are below ₱3,000,000 for the year. For mixed-income earners, only business income counts toward this threshold
• Outstanding tax liability and/or penalties do not exceed ₱80,000 per taxable year.
• Liability arose from violations of the National Internal Revenue Code of 1997 (NIRC).

What cases are eligible for the tax abatement?

1. File an application

First, the taxpayer shall manually file an application for abatement on a per taxable year basis. The application must be submitted directly to the Revenue District Office (“RDO”) having jurisdiction over the taxpayer. Further, the application must specify the tax types and basic amount due, which shall exclude interests.

2. Pay abatement fee

Second, the taxpayer shall pay a fixed, one-time abatement fee of Five Thousand Pesos (Php5,000.00). This fee must be paid either electronically or manually within five (5) working days from the date the application was filed.

3. Submit your proof of payment

Third, the taxpayer must submit proof of payment to the concerned RDO. This step must be completed within five (5) working days from the date of payment, as failure to submit the same within the 5-day period will cause the application to be automatically voided.

Key Dates and Deadlines

About the author

Atty. Cloie Tapel is a Assistant Manager from the Tax group of Forvis Mazars in the Philippines. This article is for general information purposes only and should not be considered professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent Forvis Mazars in the Philippines.

Atty. Cloie Tapel 
Tax Assistant Manager 
Forvis Mazars in the Philippines

Need help assessing your eligibility or preparing your application? 

Our tax professionals at Forvis Mazars Philippines can review your BIR records, determine which liabilities qualify, and guide you through the availment process.