THE BUREAU of Internal Revenue (BIR) is studying the expansion of its one-time tax abatement program to small taxpayers after granting P266.79 million in tax and penalty relief to micro taxpayers in the first four months of implementation.
BIR Commissioner Charlito Martin R. Mendoza said the level of availment showed that targeted tax relief could help micro taxpayers settle their outstanding obligations and resolve long-pending tax cases.
“Because of this, we are studying the expansion of the one-time tax abatement program to include small taxpayers,” Mr. Mendoza said in a statement in Filipino on Wednesday.
In June, the BIR issued Revenue Regulations (RR) No. 4-2026 for the one-time abatement program for micro taxpayers or those with annual gross sales below P3 million.
Under the BIR’s classification, small taxpayers are those with annual gross sales of P3 million but less than P20 million.
Mr. Mendoza said expanding the tax abatement program will provide relief for taxpayers, as well as help BIR close long-standing cases.
RR No. 4-2026 allowed qualified micro taxpayers with covered basic taxes and penalties totaling not more than P80,000 for a taxable year to apply for abatement upon payment of a P5,000 abatement fee, subject to the prescribed conditions.
As of Oct. 24, the BIR said the program had 3,929 beneficiaries. The agency received 17,101 applications, 15,050 of which had been approved, covering 45,341 tax and penalty items.
The BIR said it abated P266.79 million in taxes and penalties, made up of P42.05 million in basic taxes and P224.74 million in compromise penalties.
The program covers micro taxpayers with delinquent accounts, preliminary or final assessments, whether disputed or not, and open stop-filer cases as of Dec. 31, 2025, including those involving taxpayers who have ceased business operations.
The one-time abatement program for micro taxpayers was among the tax relief measures highlighted by President Ferdinand R. Marcos, Jr. in his 2026 State of the Nation Address.
Under RR No. 4-2026, the abatement program remains available to qualified micro taxpayers until Dec. 31, 2026.
“Our Revenue Regions and Revenue District Offices will continue reaching out to qualified micro taxpayers and assisting them with availment,” said Mr. Mendoza.
“We want to make sure that those who qualify for this relief know that it is available and know where to go for assistance,” he added. — Justine Irish D. Tabile
