The Bureau of Internal Revenue (BIR) has opened a one-time tax abatement program that lets micro taxpayers settle old tax liabilities, close stop-filer cases, and clear their records before the year ends.
Revenue Regulations No. 4-2026, signed June 18, 2026 and issued June 22, covers micro taxpayers – those with gross annual sales below ₱3,000,000 – who have delinquent accounts, pending assessments, or open stop-filer cases on record as of December 31, 2025. The program runs until December 31, 2026, unless extended by the Department of Finance.
To qualify, a taxpayer’s total basic tax liabilities and penalties for the relevant taxable year must not exceed ₱80,000. Covered cases include delinquent accounts; preliminary and final assessments, whether disputed or not; pending compromise settlement requests; tax collection cases already in court; and stop-filer cases, even for businesses that have already shut down. A few cases are excluded, including criminal tax fraud cases already filed in court, and accounts under the Run After Tax Evaders program, unless the Commissioner allows them on a case-by-case basis.
Taxpayers file their application with the Revenue District Office that has jurisdiction over them, using BIR Form Annex “A.” They must list the specific tax types and basic amounts due for each case; leaving this out gets the application denied automatically.
Once an application is accepted, the taxpayer pays a ₱5,000 abatement fee through BIR Form No. 0605, then submits proof of payment to the RDO – both within five working days. If either deadline is missed, the application is voided, though it can be refiled within the program period. The fee is non-refundable if an application is withdrawn or denied; in that case, it’s applied as partial payment toward the taxes or penalties being abated.
The RDO then issues a Certificate of Availment within five working days of verifying payment, which serves as proof that the case is closed.
BIR Commissioner Charlito Martin R. Mendoza framed the program as part of President Ferdinand Marcos Jr.’s push to ease compliance. “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. It is meant to help you settle past obligations without a heavy financial burden, update your records, and move forward as a compliant taxpayer,” Mendoza said.
Finance Secretary Frederick D. Go tied the measure to 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. 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,” Go said.
The regulations complement Revenue Memorandum Circular No. 47-2026, which simplified business registration closure with the BIR and allows tax clearances in as fast as three days for qualified cases. Mendoza noted that many micro taxpayers have already stopped operating but still carry unresolved obligations or inactive registrations. The two measures together are meant to make closing out old cases simpler.
Payments a taxpayer already made on a covered case before the regulations took effect will not be refunded. The rules take effect 15 days after publication in the Official Gazette or on the BIR website, whichever comes first.
