Availment of a One-Time Abatement of Taxes and/or Penalties for Micro Taxpayers 

The Bureau of Internal Revenue issued Revenue Regulations No. 004-2026 for the One-Time Abatement of Taxes and/or Penalties for Micro-Taxpayers until December 31, 2026. 

Micro taxpayer refers to a taxpayer whose gross sales for the year is less than Three Million Pesos (<P3,000,000.00) and shall only cover business income, excluding compensation earned under employer-employee relationships. The abatement covering total basic tax liabilities and/or penalties from violation of the NIRC of 1997, as amended, of not exceeding Eighty Thousand Pesos (P80,000.00) (excluding criminal violations that are already filed in Court unless allowed to avail by the Commissioner or his duly authorized representative on meritorious grounds) shall apply to: 

1. All delinquent accounts (failure to pay the filed returns or deficiency assessment that becomes final and executory, e.g., did not protest or appeal) as of December 31, 2025; 

2. Assessments (subjected to tax audit), whether preliminary or final, disputed or not, as of December 31, 2025; and 

3. All open stop-filer cases as of December 31, 2025, including those of micro taxpayers who have ceased business operations. 

Here is the process to avail the same: 

1. File an application for One-Time Abatement on a per taxable year basis using the Application Form with the Revenue District Office having jurisdiction over the taxpayer. The taxpayer shall specify the tax types and basic amount due, excluding interest, for each case covered in the application for abatement. Failure to specify the tax types and basic amount due in any covered case shall result to the denial of the application for abatement. 

2. Upon acceptance of the application, the applicant shall pay the amount of Five Thousand Pesos (P5,000.00) using BIR Form No. 0605 within five (5) working days from the filing of the application. In case of withdrawal or denial of the application, the abatement fee shall be non-refundable but shall be applied as partial payment to the taxes and penalties sought to be abated.; 

3. Submit the proof of payment to the RDO within five (5) working days from the date of payment. Failure to submit the proof of payment within the period automatically voids the application, without prejudice to re-filing the same within the availment period. 

4. BIR-RDO will evaluate and issue a Certificate of Availment within five (5) working days from receipt and verification of the proof of payment, and will serve as proof of the taxpayer’s availment of abatement. The RDO will inform the Appellate Division of any taxpayer who may have a pending appeal against the Final Decision on Disputed Assessment before the Office of the Commissioner, if any. 

The Regulation will be effective within 15 days from publication in the BIR website last June 22, 2026 or on July 7, 2026.