BIR grants tax relief to micro taxpayers with pending cases

MANILA, Philippines – The Bureau of Internal Revenue (BIR) has launched a one-time tax abatement program, allowing qualified micro taxpayers to settle unresolved tax cases until year-end.

Under Revenue Regulations No. 4-2026, qualified micro taxpayers may apply for the abatement of certain tax liabilities and penalties covering delinquent accounts, tax assessments, and open stop-filer cases existing as of Dec. 31, 2025, including taxpayers who have already ceased business operations but still have unresolved tax records.

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Applicants, however, must pay a P5,000 abatement fee via BIR Form No. 0605 within five working days of filing.

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Applicants must submit proof of payment within five working days before the BIR issues a certificate confirming the case’s closure under the program.

The program covers taxpayers with annual gross sales of up to P3 million and tax liabilities and penalties of up to P80,000 per taxable year.

In a statement, BIR Commissioner Charlito Martin Mendoza said the measure gives micro taxpayers an “opportunity to start with a clean slate.”

“Many micro taxpayers have already stopped operating but continue to carry unresolved tax obligations or inactive registrations. We have already simplified the process of properly closing a business, and this one-time abatement program complements it by easing the financial burden of settling old tax liabilities for our micro taxpayers,” Mendoza said.

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“Together, these reforms make it easier to close lingering cases, put their records in order, and move forward,” he added.

Finance Secretary Frederick Go said the initiative is part of the government’s continuing efforts to ease doing business reforms.

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“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,” Go said.

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“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,” he added. /pai INQ