If you’ve been quietly stressed about old, unpaid taxes — a year you forgot to file, a notice you didn’t know how to respond to, a business you stopped running but never properly closed — this update is worth reading.

The BIR just released Revenue Regulations No. 4-2026 on June 22, 2026: a one-time tax abatement program for micro taxpayers. In plain terms, if your business income is below ₱3 million and your unpaid tax liabilities are under ₱80,000, you may be able to close old cases with the BIR for a flat fee of ₱5,000. No more surcharges, penalties, or compounding interest piling on top.

The window is open until December 31, 2026. Here is what you need to know.

But first, does this even apply to you?

What is BIR’s Tax Abatement?

Under RR No. 4-2026, the BIR is giving micro taxpayers a way to settle old tax liabilities — unpaid accounts, pending assessments, and missed filing cases — in exchange for a one-time fee of ₱5,000 per approved application.

Once approved, the BIR issues a Certificate of Availment. That certificate officially closes the case. Clean record. Fresh start.

The program covers cases that existed as of December 31, 2025.

Who can apply for Tax Abatement?

You need to meet two conditions.

First, you are a micro taxpayer. That means your gross sales (business income only, not your salary if you are also employed) are below ₱3,000,000 for the year. This follows the same definition under RR No. 8-2024.

Second, your total unpaid basic taxes and/or penalties for that taxable year are ₱80,000 or below, across all covered cases combined.

This applies to businsses, as long as they fall within the micro taxpayer threshold.

What kinds of cases are covered for Tax Abatement?

The program applies to:

• Unpaid taxes already due (delinquent accounts), whether you self-assessed or the BIR sent you a notice
• Assessment notices issued on or before December 31, 2025, even ones you contested
• Cases pending in BIR offices, tax courts, or even the Supreme Court (as long as they have not been fully decided and enforced)
• Stop-filer cases, meaning you missed filing returns for one or more periods
• Businesses that already stopped operating but still have unresolved BIR obligations

One thing worth noting: even if your case is currently being disputed (at the BIR, the Department of Justice, or in court) it may still be covered, as long as the basic tax involved is ₱80,000 or below for that year.

What is NOT covered?

A few cases are excluded:

• Tax fraud cases (such as those under the BIR’s RATE program), unless the Commissioner personally allows it
• Criminal violations already filed in court
• Amounts already recorded as “Accounts Payable to BIR” in your books
• Cases where there is no basic tax due at all, only penalties

How does the process work?

1. Go to your Revenue District Office (RDO), the one where you are registered.
2. File a manual application for abatement using the BIR form in Annex “A” of RR No. 4-2026. You file one application per taxable year.
3. In the form, specify the tax types and the basic amounts due (not counting interest) for each case you want covered. Leaving out any case will result in the application for that case being denied.
4. Pay the ₱5,000 abatement fee within five working days from filing, using BIR Form No. 0605. You can pay electronically or manually.
5. Submit your proof of payment to the RDO within five working days from the date you paid.
6. If everything checks out, the RDO will issue your Certificate of Availment within five working days.

One important heads-up: the ₱5,000 fee is non-refundable, even if your application is denied or you withdraw it. In that case, the ₱5,000 gets applied as partial payment toward the tax you owe.

What if your business already closed, can I still apply for Tax Abatement?

The program explicitly includes taxpayers who have already stopped operations. If you shut down a business but still have unresolved missed filings or unpaid assessments from that period, you can still apply.

This also pairs well with another recent BIR update: RMC No. 47-2026, which simplified the process of formally closing and deregistering a business, with tax clearances now possible in as fast as three days for eligible cases. If you need to finally close the books on an old business, these two together make the process much less painful.

What should you do now?

If you think you might have old BIR liabilities (even if you are not 100% sure) the first step is finding out what is on your record. Visit your RDO and ask about your account status.

If you have missed filings, start there. Filing late is better than not filing at all, and getting your records current matters when you go in to apply for abatement.

If the process feels complicated, a CPA can help. An accountant can help you with your BIR records, figure out what is covered, and walk you through the application.

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This article is for general informational purposes only and does not constitute tax or legal advice. Requirements and procedures are based on RR No. 4-2026 issued June 22, 2026. Consult a registered CPA or tax professional for advice specific to your situation.