The Bureau of Internal Revenue (BIR) is considering expanding its tax abatement program to businesses with annual gross sales of P3 million to below P20 million, following P266.79 million in relief granted to micro taxpayers in the program’s first four months.
BIR Commissioner Charlito Martin Mendoza said the proposed expansion would extend relief to small taxpayers while helping the agency resolve long-pending tax cases. The existing program is limited to micro businesses with annual gross sales below P3 million.
As of October 24, the initiative had benefited 3,929 taxpayers, with compromise penalties accounting for P224.74 million, or about 84% of the total amount abated. The remaining P42.05 million represented basic taxes.
The agency had received 17,101 applications and approved 15,050, covering 45,341 tax and penalty items. The figures reflect different measures of program activity: applications are counted separately from individual taxpayer beneficiaries, while each application may involve multiple items.
Under current rules, eligible micro taxpayers whose covered basic taxes and penalties total no more than P80,000 for a taxable year may qualify by paying a P5,000 fee, subject to prescribed conditions.
The program covers delinquent accounts, preliminary or final assessments, whether disputed or undisputed, and open stop-filer cases as of December 31, 2025. Taxpayers that have ceased operations may also qualify, broadening access beyond businesses that remain active.
The program runs until December 31, 2026, although Mendoza has not provided a timetable for extending coverage to the next tier of businesses.
Any expansion would potentially bring a wider group of smaller enterprises within reach of the settlement mechanism. However, the BIR has yet to disclose whether eligibility thresholds, payment terms or other conditions would change for the proposed beneficiaries.
To facilitate applications, the agency has updated its Offline eBIRForms Package to support abatement payments through Form 0605. Revenue offices will continue contacting eligible taxpayers and assisting applicants seeking to settle covered obligations and clear outstanding tax records.
