MANILA, Philippines (Daily Sun Chronicle) — The Bureau of Internal Revenue has launched a one-time tax abatement program for micro taxpayers, giving small businesses and stop-filers a chance to settle outstanding tax obligations and clear their records.
Revenue Regulations No. 4-2026, issued June 22, establishes guidelines for the program, which allows qualified micro taxpayers with delinquent accounts, tax assessments and open stop-filer cases to apply for relief until Dec. 31, 2026.
The program covers taxpayers with annual gross sales of no more than 3 million pesos and basic tax liabilities or penalties of up to 80,000 pesos for a taxable year. Eligible cases include delinquent accounts and assessments — whether preliminary or final, disputed or not — as well as open stop-filer cases, including those involving businesses that have already ceased operations. Covered liabilities must have existed as of Dec. 31, 2025.
BIR Commissioner Charlito Martin Mendoza said the measure supports President Ferdinand Marcos Jr.’s efforts to simplify compliance and improve access to government services.
“This is an opportunity to start with a clean slate,” Mendoza said. “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.”
Finance Secretary Frederick Go said the initiative forms part of the administration’s Ease of Doing Business reforms.
“We aim to create a more taxpayer-friendly and business-friendly environment while helping micro businesses resolve lingering tax issues and maintain good compliance practices,” Go said.
The regulations complement Revenue Memorandum Circular No. 47-2026, which simplified procedures for closing and canceling business registrations. “Under the circular, authorities can issue tax clearances in as little as three days for qualified cases.
Mendoza said many micro-taxpayers have stopped operating but still carry unresolved tax obligations or inactive registrations, and the new program aims to ease the financial burden of settling old liabilities.
Qualified taxpayers must file an application with the Revenue District Office that has jurisdiction over them and pay a one-time abatement fee of 5,000 pesos for each approved application. Once requirements are met, the Revenue District Office will issue a Certificate of Availment confirming that the taxpayer has participated in the program and that the covered case has been closed.
The BIR said the initiative aims to help taxpayers regularize their records, resolve dormant cases and strengthen voluntary tax compliance while maintaining more accurate taxpayer records.
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