The Bureau of Internal Revenue (BIR) is giving micro businesses and inactive taxpayers a chance to clear old tax issues through a one-time amnesty program aimed at reducing compliance burdens and helping small enterprises return to good standing.
Under Revenue Regulations No. 4-2026 issued on 22 June, the BIR opened its one-time tax abatement program for qualified micro taxpayers with delinquent accounts, pending assessments, and open stop-filer cases. Applications will be accepted until 31 December 2026.
The program covers micro taxpayers with annual gross sales of not more than P3 million and total basic tax liabilities and penalties of up to P80,000 for a taxable year. It applies to eligible cases existing as of December 31, 2025, including disputed or undisputed assessments, delinquent accounts, and inactive registrations of businesses that have already ceased operations.
BIR Commissioner Charlito Martin R. Mendoza said the initiative supports President Ferdinand R. Marcos Jr.’s push to make government services more accessible while encouraging taxpayers to settle past obligations.
“This is an opportunity to start with a clean slate. If you are a micro taxpayer with old tax obligations, delinquent accounts, assessments, or stop-filer cases, I encourage you to avail of this program. It is meant to help you settle past obligations without a heavy financial burden, update your records, and move forward as a compliant taxpayer,” Mendoza said.
Finance Secretary Frederick D. Go said the program is part of efforts to create a more business-friendly environment by removing obstacles that prevent small enterprises from maintaining proper tax compliance.
“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. 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,” Go said.
The tax abatement program complements the BIR’s earlier efforts to simplify business closure procedures under Revenue Memorandum Circular No. 47-2026, which introduced streamlined requirements for cancellation of business registration and issuance of tax clearances for qualified cases.
Mendoza said many micro taxpayers have already stopped operations but continue to face unresolved tax obligations and inactive registrations.
“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. Together, these reforms make it easier to close lingering cases, put their records in order, and move forward,” Mendoza said.
Qualified taxpayers must submit an application for abatement to their respective Revenue District Office and pay a one-time P5,000 abatement fee for each approved application. Once requirements are completed, the BIR will issue a Certificate of Availment confirming participation in the program and closure of the covered case.
The bureau said the initiative is expected to help improve taxpayer records, resolve long-standing cases, and strengthen voluntary compliance among micro enterprises.