The Bureau of Internal Revenue’s (BIR) tax abatement program for micro taxpayers has cleared P84.5 million in taxes and penalties in its first two months, giving small businesses a cheaper way to settle old liabilities and return to compliance.
As of Sept. 18, the BIR had received 6,234 applications from 1,352 micro taxpayers, with 5,000 applications approved. Abatement fees collected reached P24.82 million.
The one-time program allows qualified micro taxpayers to resolve covered tax liabilities at a fixed abatement fee, instead of paying the full amount of taxes and penalties.
“Availment gained momentum following President Ferdinand R. Marcos Jr.’s mention of the program in his State of the Nation Address and intensified information campaigns by our Revenue Regions,” BIR Commissioner Charlito Martin Mendoza said.
Under Revenue Regulations No. 4-2026, micro taxpayers with delinquent accounts, preliminary or final assessments, or open stop-filer cases as of Dec. 31, 2025 may apply, subject to the program’s requirements.
Those with total delinquent or assessed basic taxes and penalties of no more than P80,000 for a taxable year may settle covered liabilities by paying a P5,000 abatement fee per taxable year.
Mendoza said revenue offices had been directed to identify eligible taxpayers and help them through the application process rather than wait for businesses to come forward.
“This is an opportunity to settle covered liabilities, clean up old tax records, and move forward in compliance,” Mendoza said.
The program runs until Dec. 31, giving more micro businesses time to settle covered liabilities, clean up their tax records and return to the formal compliance system.
