BIR issued Revenue Regulation (RR) No. 4-2026 to provide qualified micro taxpayers with an opportunity to settle outstanding tax liabilities through a one-time abatement program. The regulation aims to help taxpayers resolve delinquent tax accounts, assessments, and open stop-filer cases, including those who have already ceased business operations.

Key Features:

  • Micro taxpayers with annual gross sales not exceeding P3 million is eligible for the one-time abatement program.
  • The abatement shall apply to: delinquent tax accounts, preliminary or final tax assessments issued on or before December 31, 2025, open stop-filer cases, and certain cases pending before BIR offices, courts, and other tax authorities, subject to specified conditions.
  • The total basic tax liability and/or penalties for a taxable year must not exceed P80,000.
  • Taxpayers must file an application for abatement with RDO having jurisdiction with them. Application fee of P5,000 must be paid.
  • Qualified taxpayers can avail of the benefits under these regulation until December 31, 2026, unless extended by Secretary of Finance.
  • Upon approval and compliance with the requirements, the RDO will issue a Certificate of Availment, which serves as proof of settlement and closure of the covered tax case.