The Bureau of Internal Revenue (BIR) launched a one-time tax abatement program aimed at giving micro-businesses and inactive filers a chance to settle outstanding liabilities and clean up their financial records.

Under Revenue Regulations No. 4-2026, the tax bureau established guidelines for the absolute waiver of certain taxes and penalties for qualified micro-taxpayers with delinquent accounts, active assessments, or unresolved “stop-filer” cases. Eligible taxpayers have until Dec. 31, 2026, to apply for the relief.

The program specifically targets micro-enterprises with annual gross sales not exceeding ₱3 million. To qualify, an applicant’s total basic tax liabilities or accumulated penalties must not exceed ₱80,000 for any given taxable year.

The relief package covers delinquent accounts and assessments—regardless of whether they are preliminary, final, or currently disputed—alongside open stop-filer cases. This includes business owners who have already shut down operations but still carry unresolved tax records on the government's books. The program applies strictly to liabilities existing as of Dec. 31, 2025.

BIR Revenue Commissioner Charlito Martin R. Mendoza said the measure aligns with President Ferdinand Marcos Jr.’s directive to streamline regulatory compliance and improve accessibility to public services. Mendoza urged micro-taxpayers with lingering obligations to utilize the window to settle past debts without facing crippling financial penalties.

Finance Secretary Frederick Go also backed the initiative, framing it as part of the administration’s broader ease-of-doing-business reforms.

Go noted that resolving legacy liabilities removes significant barriers to compliance, ultimately encouraging smaller, informal operations to integrate seamlessly into the formal economy.

The new regulations build on Revenue Memorandum Circular No. 47-2026, an earlier directive that accelerated the business closure process, allowing qualified enterprises to secure formal tax clearances in as fast as three days.

Mendoza noted that many micro-taxpayers who have ceased operations remain burdened by inactive registrations and old debts. He emphasized that the combination of expedited closure procedures and the new abatement fee reduces the friction required to properly shutter a business.

To tap into the program, qualified taxpayers must submit an application to their respective Revenue District Office and pay a fixed, one-time abatement fee of ₱5,000 per approved application.

Once the bureau verifies compliance, it will issue a Certificate of Availment, formally closing the covered cases. Through the initiative, the bureau expects to clear dormant accounts and improve the accuracy of its taxpayer database to bolster voluntary compliance moving forward.