The Bureau of Internal Revenue (BIR) has issued Revenue Regulations No. 4-2026, a one-time abatement program that allows qualified micro taxpayers to settle covered tax liabilities and penalties under specified conditions. Here’s what the program covers, who may apply, and what taxpayers need to know before filing.

What is this new BIR tax abatement program all about?

The One-Time Tax Abatement Program is a special initiative introduced by the BIR to allow eligible micro taxpayers to settle certain unpaid tax obligations.

This effort is intended to reduce the financial burden on micro taxpayers who may have struggled to comply in the past. Participating in the program allows taxpayers to regularize their compliance status while reducing the burden of unresolved tax issues.

Ultimately, it contributes to the BIR’s overall goal of improving voluntary compliance while assisting the recovery and viability of small businesses and self-employed individuals. 

Who can apply for the One-Time Abatement Program?

The program is intended for micro taxpayers with annual gross sales of up to ₱3 million who, as of December 31, 2025, have existing tax assessments (whether preliminary or final, disputed or undisputed), delinquent accounts, or stop-filer cases, including those who have already ceased operations. The program covers taxable years in which the total basic tax and/or penalties do not exceed ₱80,000.

What is the process for applying, and what do taxpayers need to comply with?

Qualified taxpayers must submit an application to the Revenue District Office (RDO) where they are currently registered. In order to confirm eligibility and determine the taxpayer’s covered liabilities under the program, they must submit all documentary requirements prescribed by the BIR along with the application.

To comply with the program requirements, taxpayers must complete the following steps:

• File the Application for One-Time Tax Abatement with the appropriate RDO per applicable taxable year.
• Provide details of covered tax cases (e.g., delinquent accounts, tax assessments, or stop-filer cases). All tax types for each taxable year must be disclosed in the application.
• Pay the one-time, non-refundable abatement fee of ₱5,000 per application using BIR Form 0605 within five (5) working days from filing.
• Submit proof of payment to the RDO five (5) working days after payment. Failure to submit within the required period automatically voids the application without prejudice to re-filing within the availment period.
• Await evaluation by the BIR and issuance of a Certificate of Availment, if approved.

What happens if someone fails to comply after applying or getting approved?

Failure to comply with the requirements may result in the denial of the application or the application becoming void, in which case the taxpayer remains liable under the regular tax rules. As a result, once the application process begins, it is important to ensure that all requirements and deadlines are met. 

When will the regulation take effect? Is there a deadline for applying to this program?

Based on the date of publication, RR No. 4-2026 is expected to be effective starting July 7, 2026. All eligible taxpayers must submit their applications on or before December 31, 2026 in order to be considered for the program. Applications filed after will generally no longer be accepted unless the availment period is extended by the Secretary of Finance upon the recommendation of the Commissioner of Internal Revenue. – Rappler.com

Mon Abrea is a Global Tax Policy Expert and Chief Tax Advisor of the Asian Consulting Group (ACG), the Philippines’ premier tax advisory and investment consulting firm—providing tax strategy, compliance, and policy advisory services to multinational corporations, foreign investors, and government institutions. For strategic tax advisory, CONSULT ACG, or you may also send an email to consult@acg.ph to host investment and tax briefing in key cities across Asia, Middle East, Oceania, Europe and North America.