The situation, in brief
The Bureau of Internal Revenue (BIR) has launched a One-Time Tax Abatement Program that allows micro taxpayers with annual gross sales of up to ₱3 million to clear up to ₱80,000 in pending tax liabilities and penalties per taxable year for a flat payment of just ₱5,000, BIR Commissioner Charlito…
The Bureau of Internal Revenue (BIR) has launched a One-Time Tax Abatement Program that allows micro taxpayers with annual gross sales of up to ₱3 million to clear up to ₱80,000 in pending tax liabilities and penalties per taxable year for a flat payment of just ₱5,000, BIR Commissioner Charlito Mendoza said Saturday.
Mendoza made the disclosure in an interview on DZRH News program Special on Saturday on August 8, as part of the DZRH SONA 2026 Series featuring the Department of Finance.
He said the program targets the smallest businesses in the country, covering sari-sari stores, small eateries and carenderias, and other micro enterprises that may have accumulated tax liabilities and penalties over the years but lack the resources to settle them in full.
“Habang nag-uusap po tayo, umaandar na ‘yung ating One-Time Tax Abatement Program para sa ating mga micro taxpayers. ‘Pag sinabi pong micro taxpayers, ito ‘yung ang gross sales lamang sa isang taon ay hindi lumalampas ng tatlong milyong piso,” Mendoza said.
Under the program, micro taxpayers with delinquent or pending tax liabilities of up to ₱80,000 per taxable year can apply for abatement, meaning both the tax liability and its associated penalties are condoned in exchange for a one-time payment of ₱5,000.
Mendoza said the program gives small businesses a clean slate, allowing them to regularize their tax standing without the crushing financial burden of paying back taxes and the compounding penalties that accumulate over time.
He said the program reflects the BIR’s principle that tax administration must be tempered with compassion, especially for the smallest and most financially vulnerable taxpayers who may have fallen behind not out of intent to evade but out of genuine financial hardship.
The One-Time Tax Abatement Program complements the income tax exemption increase and the minimum corporate income tax exemption for micro and small businesses announced by President Marcos during his SONA, together forming a tax relief package targeted at the country’s smallest economic players.
