One-time abatement of taxes and/or penalties for micro taxpayers
(Revenue Regulations No. 04-2026 issued on June 22, 2026)
This Tax Alert is issued to inform concerned taxpayers of the one-time abatement of taxes and/or penalties available to micro taxpayers until December 31, 2026.
Coverage
The abatement is available to micro taxpayers, or taxpayers with gross sales of less than Three Million Pesos (P3,000,000) for the taxable year, as defined under RR No. 08-2024. For mixed income earners, “gross sales” refers only to business income and excludes compensation income earned under an employer-employee relationship.
The abatement shall apply to:
a. All delinquent accounts as of December 31, 2025
Delinquent Account refers to the amount of tax due on or before December 31, 2025, from a taxpayer who failed to pay within the prescribed period, arising from either: (1) a self-assessed tax; or (2) a deficiency assessment that has become final and executory.
b. Assessments, whether preliminary or final, disputed or not, as of December 31, 2025
For purposes of these Regulations, assessment refers to a preliminary or final assessment, whether disputed or not, covered by a Preliminary Assessment Notice, Final Assessment Notice, or a Final Decision on Disputed Assessment issued on or before December 31, 2025, which has not yet become final and executory.
c. All open stop-filer cases as of December 31, 2025, including those of micro taxpayers who have ceased business operations.
Stop-filer cases refer to a case wherein a registered taxpayer failed to file and/or submit the required tax return and other tax information within the prescribed due date.
Micro taxpayers may apply for abatement for the following cases, provided their total basic liabilities and/or penalties covering all of the below cases for a taxable year do not exceed Eighty Thousand Pesos (P80,000.00):
a. Delinquent accounts;
b. Cases with administrative protest pending in the Regional Office, Revenue District Office, Legal Service through Appellate Division, Collection Service, Enforcement Service and other Offices in the National Office;
c. Tax cases being disputed before the Department of Justice and the courts, i.e., the Municipal Trial Courts (MTC), Regional Trial Courts (RTC), Court of Tax Appeals (CTA), Court of Appeals (CA), and the Supreme Court (SC), including decided cases which are not yet final and executory;
d. Tax Collection Cases filed with the Courts;
e. Cases with pending request for Compromise Settlement which are under evaluation by the Technical Working Group (TWG)-National Evaluation Board (NEB), TWG-Regional Evaluation Board (REB), NEB, and REB;
f. Cases with pending request for abatement under RR No. 13-2001 for evaluation by the Commissioner of Internal Revenue (CIR) or his authorized representative;
g. Criminal violations except those already filed in Court, such as those under the Run After Tax Evaders (RATE) Program of the Bureau, and other tax fraud cases, unless allowed to avail by the Commissioner or his duly authorized representative on meritorious grounds;
h. “Account Payable or Due to BIR” accounts duly recorded or acknowledged by the taxpayers in the books of accounts; and
i. No basic tax due but the threshold amount involves penalties due.
Any payments made by micro taxpayers on the above cases prior to the effectivity of the Regulations shall not be refundable.
Manner and place for filing
Micro taxpayers who wish to avail of the abatement shall manually file an application using the One-Time Abatement for Micro Taxpayers Application Form (Application Form), on a per taxable year basis, with the Revenue District Office (RDO) having jurisdiction over the taxpayer.
Failure to specify the tax types and basic amount due, excluding interest, for each covered case, in the application for abatement, shall result in the denial of the application for abatement.
Abatement fee and issuance of Certificate of Availment
Upon acceptance of the application, an abatement fee of Five Thousand Pesos (P5,000.00) shall be paid by filing BIR Form No. 0605, either electronically or manually, in accordance with RR No. 04-2024 and as further clarified under Revenue Memorandum Circular (RMC) No. 87-2024.
The abatement fee must be paid within five (5) working days from the filing of the application and proof of payment thereof must be submitted to the RDO with five (5) working days from the date of payment.
The RDO shall issue the Certificate of Availment within five (5) working days from receipt and verification of the proof of payment. The concerned RDO shall inform the Appellate Division of any taxpayer-applicant who may have a pending appeal against a Final Decision on Disputed Assessment before the Office of the Commissioner, if any.
If the taxpayer withdraws the application or if the application is denied, the P5,000.00 abatement fee shall be non-refundable but shall be applied as partial payment of the taxes or penalties sought to be abated.
Failure to submit proof of payment within the required period shall automatically void the application, without prejudice to re-filing within the availment period.
Period of availment
Qualified micro taxpayers may avail of the benefits under these Regulations until December 31, 2026, unless extended by the Secretary of Finance upon the recommendation of the CIR.
Effectivity
These Regulations shall take effect fifteen (15) days following their publication in the Official Gazette or on the BIR’s official website, whichever comes first. RR No. 04-2026 was published on the BIR’s official website on June 22, 2026.