By Benjamin Cuaresma
MANILA — The Bureau of Internal Revenue (BIR) has rolled out a one-time tax abatement program aimed at helping micro-taxpayers settle outstanding obligations and regularize their tax records with minimal financial burden.
Under the program, eligible taxpayers are those whose annual gross sales do not exceed P3 million and whose total basic tax liabilities, surcharges, penalties, or assessments for a taxable year do not exceed P80,000.
The BIR said the initiative covers delinquent accounts and tax assessments, whether preliminary or final, and regardless of whether they are under dispute. It also includes open stop-filer cases, particularly those involving taxpayers who have already ceased business operations but still have unresolved tax records.
To avail themselves of the program, qualified taxpayers must submit an application through their respective Revenue District Offices (RDOs) and pay a one-time abatement fee of P5,000 for each approved application.
Once all requirements have been satisfied, the BIR will issue a Certificate of Availment, signifying that the taxpayer has successfully participated in the program and that the covered tax case has been formally closed.
BIR Commissioner Charlito Martin Mendoza said the initiative is designed to provide struggling micro businesses with an opportunity to move forward and regain tax compliance.
“This program gives small taxpayers a chance to settle past obligations, update their records, and start anew without carrying the weight of unresolved tax liabilities,” Mendoza said.
The tax relief measure complements the agency’s earlier reforms that simplified the process of business closure and cancellation of tax registrations.
According to the BIR, many micro entrepreneurs who have already stopped operating continue to face tax-related issues because their businesses were never formally closed or their registrations remained active.
By easing both administrative and financial requirements, the agency hopes to encourage more taxpayers to settle outstanding obligations and re-enter the tax system in good standing.
The BIR said the program forms part of its broader efforts to improve voluntary compliance while providing practical relief to small businesses affected by financial and operational challenges.
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