BIR launches one-time tax abatement for micro businesses and inactive taxpayers


The Bureau of Internal Revenue (BIR) has launched a one-time program that will allow qualified micro businesses and inactive taxpayers to settle old tax obligations with reduced or waived taxes and penalties.

Under new regulations published on Monday, June 22, the BIR said qualified micro taxpayers with delinquent accounts, tax assessments, and open stop-filer cases may avail of the program until December 31, 2026.

This covers taxpayers with annual gross sales of up to P3 million and whose total basic tax liabilities and/or penalties do not exceed P80,000 for a taxable year. Cases must have existed as of December 31, 2025.

Qualified taxpayers must file an application for abatement with their respective Revenue District Office (RDO), and pay a one-time abatement fee of P5,000 for each approved application. The concerned RDO will issue a Certificate of Availment upon compliance.

“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,” BIR Commissioner Charlito Martin Mendoza said in a statement.

“It is meant to help you settle past obligations without a heavy financial burden, update your records, and move forward as a compliant taxpayer,” he added.

The BIR collected P34.610 billion in May, posting 14.15% growth from the previous year and exceeding its P279.056-billion goal for the month, after the deadline for filing annual income tax returns was moved from April 15 to May 15, 2026.

“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.

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