The Bureau of Internal Revenue (BIR) has rolled out a one-time tax abatement program for micro taxpayers, aiming to reduce the financial burden on small businesses and self-employed individuals. The One-Time Tax Abatement Program, covered under Revenue Regulations No. 4-2026, is a special initiative to allow eligible micro taxpayers to settle certain unpaid tax obligations. The program targets micro taxpayers with annual gross sales of up to ₱3 million who have existing tax assessments, delinquent accounts, or stop-filer cases, including those who have already ceased operations.
To qualify for the program, taxpayers must submit an application to the Revenue District Office (RDO) where they are currently registered. They must also provide all documentary requirements prescribed by the BIR along with the application, and pay a one-time, non-refundable abatement fee of ₱5,000 per application using BIR Form 0605 within five working days from filing.
Failure to comply with the program requirements may result in the denial of the application or the application becoming void, in which case the taxpayer remains liable under the regular tax rules. Taxpayers must complete the following steps to comply with the program requirements: file the Application for One-Time Tax Abatement with the appropriate RDO per applicable taxable year, provide details of covered tax cases, disclose all tax types for each taxable year, and submit proof of payment to the RDO five working days after payment. The BIR will evaluate the application and issue a Certificate of Availment if approved.
The regulation takes effect on July 7, 2026, and all eligible taxpayers must submit their applications on or before December 31, 2026, to be considered for the program. The BIR's overall goal of improving voluntary compliance will be assisted by participating micro taxpayers, contributing to the recovery and viability of small businesses and self-employed individuals.
As of December 31, 2025, micro taxpayers with existing tax assessments, delinquent accounts, or stop-filer cases, including those who have already ceased operations, are eligible to apply for the One-Time Tax Abatement Program. The program covers taxable years in which the total basic tax and/or penalties do not exceed ₱80,000. The BIR's initiative to reduce the financial burden on micro taxpayers will benefit small businesses and self-employed individuals who may have struggled to comply in the past.
The deadline for applying to this program is December 31, 2026, and applications filed after this date will generally no longer be accepted unless the availment period is extended by the Secretary of Finance upon the recommendation of the Commissioner of Internal Revenue. The BIR's one-time relief program will provide an opportunity for micro taxpayers to regularize their compliance status and reduce the burden of unresolved tax issues.
What You Need to Know: The One-Time Tax Abatement Program aims to reduce the financial burden on micro taxpayers, allowing them to settle certain unpaid tax obligations. The program covers taxpayers with annual gross sales of up to ₱3 million who have existing tax assessments, delinquent accounts, or stop-filer cases. The BIR will evaluate the application and issue a Certificate of Availment if approved.
Eligibility Criteria: Micro taxpayers with annual gross sales of up to ₱3 million who have existing tax assessments, delinquent accounts, or stop-filer cases are eligible to apply for the One-Time Tax Abatement Program. The program covers taxable years in which the total basic tax and/or penalties do not exceed ₱80,000.
Benefits: The program will allow micro taxpayers to regularize their compliance status and reduce the burden of unresolved tax issues. The initiative will contribute to the BIR's overall goal of improving voluntary compliance, assisting the recovery and viability of small businesses and self-employed individuals.