Department of Finance
The Department of Finance (DoF) issued Revenue Regulations (RR) No. 4-2026, 18 June 2026, prescribing guidelines and procedures for the availment of a one-time abatement of taxes and/or penalties for micro taxpayers.
The RR applies to all taxpayers classified as micro taxpayers with delinquent or assessed basic tax or penalties not exceeding Eighty Thousand Pesos (PHP 80,000). It also covers open stop-filer cases, including those of micro taxpayers who have ceased business operations, provided that their case falls under those enumerated in Section 4 of the Regulations. The PHP 80,000 threshold refers to the total basic tax liabilities and/or penalties arising from violations of the National Internal Revenue Code (NIRC) of 1997, as amended, covering all cases specified in the Regulations.
Micro taxpayers who wish to avail of the abatement must manually file an application, on a per taxable year basis, using the prescribed BIR Form, with the Revenue District Office (RDO) having jurisdiction over the taxpayer.
The taxpayer must specify the applicable tax types and the basic amount due, excluding interest, for each case included in the application. Failure to specify the tax types and the corresponding basic amount for any covered case shall result to the denial of the application for abatement.
Upon acceptance of the application, the applicant is required to pay an abatement fee of Five Thousand Pesos (PHP 5,000) using BIR Form No. 0605, either electronically or manually, within five (5) working days from the date of filing. Proof of payment must be submitted to the RDO within five (5) working days from the date of payment. Failure to submit the proof of payment within the required period automatically voids the application, without prejudice to re-filing within the availment period.
In case of withdrawal or denial of the application, the abatement fee shall not be refunded but shall instead be applied as partial payment to the taxes or penalties sought to be abated.
A Certificate of Availment shall be issued by the concerned RDO within five (5) working days from receipt and verification of the proof of payment. The Certificate shall serve as proof of the taxpayer's availment of abatement, compliance with the requirements, and the closure of the case covered by the approved application.
Qualified taxpayers may avail the abatement until 31 December 2026, unless extended by the Secretary of Finance upon the recommendation of the Commissioner of Internal Revenue.
The RR shall take effect after fifteen (15) days following its publication in the Official Gazette or the BIR Official Website, whichever comes first.
(R.G. Manabat & Co. note: The RR was uploaded to the BIR website on 22 June 2026, effectivity date is 15 days thereafter or on 07 July 2026).
Here is the link to the full text of the issuance: RR No. 4-2026.