In June 2026 the Bureau of Internal Revenue opened a one-time settlement window for the smallest taxpayers carrying old liabilities. The framework is Revenue Regulations (RR) No. 4-2026, issued on June 22, 2026, with the step-by-step procedures spelled out in Revenue Memorandum Circular (RMC) No. 4-2026. If you're a micro taxpayer with unsettled assessments or penalties from prior years, this is a rare chance to close them cheaply. Here's how it works.
What the program does
It lets qualified micro taxpayers settle covered tax liabilities and penalties through a single, fixed abatement fee instead of paying the full amount owed. The point is to give very small businesses a clean slate — including ones that have already stopped operating but still carry open cases on the BIR's books.
Who qualifies
The program is narrow by design. To be eligible, a taxpayer must meet both thresholds:
| Condition | Limit |
|---|---|
| Annual gross sales or receipts | Not more than ₱3,000,000 |
| Covered basic tax liabilities and/or penalties | Not more than ₱80,000 per taxable year |
The liabilities also have to relate to cases that existed as of December 31, 2025. Newer liabilities fall outside the window.
What's covered
The abatement reaches the kinds of open items micro taxpayers most often accumulate:
- Delinquent accounts
- Tax assessments, whether disputed or undisputed
- Open stop-filer cases
- Cases involving businesses that have already ceased operations
Tip
If you closed a small business but never formally cleared its BIR record, this is the program that lets you tie off the loose end. Stop-filer and ceased-operation cases are explicitly included.
What it costs and how to apply
The fee is a flat ₱5,000 per approved application — not a percentage of what you owe. The process runs through your own Revenue District Office (RDO):
- Confirm you meet both eligibility thresholds.
- Prepare the required documents.
- File the application with the RDO that has jurisdiction over you.
- Pay the ₱5,000 abatement fee.
- On approval, receive your Certificate of Availment as proof the case is closed.
The deadline
Applications must be filed by December 31, 2026, unless the BIR extends it. Because the program is a one-time window tied to a fixed cut-off, the practical advice is the same as with most BIR relief measures: don't wait for the deadline. RDOs get busy as it approaches, and an application that isn't approved in time doesn't benefit from the program.
Key takeaways
- RR 4-2026 (with procedures in RMC 4-2026) offers micro taxpayers a one-time abatement of old liabilities.
- You qualify if annual gross sales are ₱3M or under and covered liabilities are ₱80,000 or under per taxable year.
- Liabilities must relate to cases existing as of December 31, 2025.
- The fee is a flat ₱5,000 per approved application, filed at your RDO by December 31, 2026.
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