Revenue Regulations No. 04-2026
One-Time Abatement of Taxes and/or Penalties for Micro Taxpayers
What it Does
Allows micro taxpayers to settle old tax liabilities at a reduced cost, closing out delinquent accounts, pending assessments, and stop-filer cases without paying the full accumulated surcharge/interest.
Who Qualifies
Micro taxpayers — gross sales under ₱3,000,000/year (per RR 8-2024). For mixed-income earners, only business income counts (compensation income is excluded).
What's Covered
As of December 31, 2025, where basic tax/penalty due is ₱80,000 or less:
- Delinquent accounts
- Assessments (preliminary or final, disputed or not) — including cases pending in RDO, Legal/Appellate, DOJ, or courts (MTC/RTC/CTA/CA/SC)
- Tax collection cases in court
- Pending compromise settlement requests
- Stop-filer cases, including taxpayers who’ve ceased operations
- Recorded “Accounts Payable/Due to BIR”
Not covered: Criminal tax fraud cases already filed in court (e.g., under RATE), unless the Commissioner allows it on meritorious grounds.
How to Avail
- File an application per taxable year at the RDO with jurisdiction over the taxpayer, using BIR Form Annex “A.” Must specify tax type and basic amount due (excluding interest) — incomplete specification means automatic denial.
- Pay a ₱5,000 abatement fee via BIR Form 0605, within 5 working days of approval.
- Submit proof of payment to the RDO within 5 working days of paying.
- RDO issues a Certificate of Availment within 5 working days of verifying payment — this closes the case. If the applicant has a pending appeal against a Final Decision on Disputed Assessment before the Commissioner, the RDO will notify the Appellate Division.
Availment Deadline
Until December 31, 2026, unless extended by the Secretary of Finance.
Effectivity
Takes effect 15 days after publication in the Official Gazette or the BIR Official Website, whichever comes first.
Note
Previously paid amounts on covered cases are not refundable. Missing the payment or proof-of-payment deadline voids the application (it can be re-filed within the availment period).