Micro taxpayers given until year’s end to settle outstanding tax

THE Bureau of Internal Revenue (BIR) said it launched a one-time tax abatement program for micro taxpayers, giving them until Dec. 31 to resolve outstanding tax liabilities.

“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 Commissioner Charlito Martin R. 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 BIR issued Revenue Regulations No. 4-2026 which prescribed the guidelines and procedures for availing of the abatement of taxes and penalties. Covered are qualified micro taxpayers with delinquent accounts, assessments, and open stop-filer cases.

The program is open to taxpayers whose gross sales do not exceed P3 million and whose total basic liabilities do not exceed P80,000.

Eligible cases include preliminary or final delinquent accounts and assessment and open stop-filer cases. The cases should also pertain to those liabilities that exist as of Dec. 2025.

Qualified taxpayers must file an application for abatement with their Revenue District Office (RDO) and pay a one-time abatement fee of P5,000 for each approved application.

Upon fulfilling the requirements, the RDO will issue a Certificate of Availment which will prove that the taxpayer registered for the program and that the covered case has been closed.

Finance Secretary Frederick D. Go said the initiative is part of the government’s continuing 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,” he said.

“By helping micro taxpayers resolve old liabilities and update their records, we are removing barriers to compliance and encouraging greater participation in the formal economy,” he added.

The new issuance complements Revenue Memorandum Circular No. 47-2026 which streamlined procedures for the closure and cancellation of business registration with the BIR.

“Many micro taxpayers have already stopped operating but continue to carry unresolved tax obligations or inactive registrations,” Mr. Mendoza said.

“We have 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. — Justine Irish D. Tabile