The Bureau of Internal Revenue (BIR) is considering expanding its one-time tax abatement program to include small businesses after nearly 4,000 micro taxpayers benefited from the initiative in just four months.
BIR Commissioner Charlito Mendoza said the program had benefited 3,929 micro taxpayers as of October 24, 2026, resulting in P266.79 million in waived taxes and penalties.
The initial results have prompted the agency to study extending the relief to small taxpayers with annual gross sales ranging from P3 million to less than P20 million.
“At present, the program covers micro taxpayers with annual gross sales below P3 million. We have seen from the level of availment that this relief is helping taxpayers settle covered obligations and clean up their tax records,” Mendoza said.
Under the existing program, qualified micro taxpayers with outstanding basic taxes and penalties totaling no more than P80,000 for a taxable year can settle eligible cases by paying a one-time abatement fee of P5,000, subject to certain conditions.
BIR data showed that 17,101 applications had been submitted as of October 24, with 15,050 approved.
Of the P266.79 million in taxes and penalties abated, P42.05 million involved basic taxes, while P224.74 million covered compromise penalties.
The program applies to qualified taxpayers with delinquent accounts, disputed or undisputed tax assessments, and unresolved stop-filer cases as of December 31, 2025. Businesses that have already ceased operations may also qualify.
Mendoza said expanding the program could help more small businesses resolve outstanding tax obligations while allowing the BIR to clear long-pending cases.
“We are now looking at expanding the one-time tax abatement to include small taxpayers, or those with annual gross sales of P3 million to below P20 million,” the revenue chief said.
The initiative was among the relief measures for micro-entrepreneurs highlighted by President Ferdinand Marcos Jr. during his 2026 State of the Nation Address. It also supports efforts to simplify tax compliance and make government services more responsive to taxpayers.
To facilitate payments, the BIR has updated its Offline eBIRForms Package, allowing taxpayers to pay the required abatement fee using BIR Form No. 0605.
The program will remain open until December 31, 2026, with BIR regional and district offices continuing to assist eligible taxpayers.
Mendoza urged qualified micro taxpayers to take advantage of the relief before the deadline, saying the agency would intensify its information campaign to ensure more businesses are aware of the program.