BIR offers tax amnesty lifeline to small businesses with old liabilities

The program intends to help taxpayers move forward without the heavy burden of old tax issues.

Small business owners burdened by unresolved tax liabilities now have a chance to clean up their records, settle lingering obligations at a lower cost, and return to full compliance under a new one-time tax abatement program launched by the Bureau of Internal Revenue (BIR).

Under Revenue Regulations No. 4-2026, issued on June 22, the BIR opened a one-time tax abatement program for qualified micro taxpayers, including small businesses and so-called “stop-filers,” or taxpayers who stopped filing returns but still have active tax records. The program will be available until Dec. 31, 2026.

The initiative is expected to benefit thousands of micro enterprises seeking to regularize their status, close dormant cases, or formally shut down operations without facing the full weight of accumulated penalties and assessments.

To qualify, taxpayers must have annual gross sales not exceeding P3 million and covered tax liabilities or penalties of no more than P80,000 for a taxable year. Eligible cases include delinquent accounts, disputed or undisputed tax assessments, and open stop-filer cases that existed as of Dec. 31, 2025.

BIR Commissioner Charlito Martin Mendoza said the program is intended to help taxpayers move forward without the heavy burden of old tax issues.

“This is an opportunity to start with a clean slate,” Mendoza said. “It is meant to help taxpayers settle past obligations, update their records, and move forward as compliant taxpayers.”

The program also complements the BIR’s earlier reforms aimed at simplifying business closure procedures. Under Revenue Memorandum Circular No. 47-2026, qualified businesses may now secure tax clearances for closure and cancellation of registration in as fast as three days.

According to the BIR, many micro businesses that have already ceased operations continue to carry unresolved tax obligations or inactive registrations, creating compliance issues that remain on record for years.

Finance Secretary Frederick Go said the measure forms part of the administration’s broader Ease of Doing Business agenda.

“We aim to create a more taxpayer-friendly and business-friendly environment while helping micro businesses resolve lingering tax issues and maintain good compliance practices,” Go said.

To avail of the program, qualified taxpayers must file an application with the Revenue District Office that has jurisdiction over them and pay a one-time abatement fee of P5,000 for each approved application. Successful applicants will receive a Certificate of Availment confirming that the covered case has been settled and closed.

The BIR said the initiative is designed to encourage voluntary compliance, improve the accuracy of taxpayer records, and help micro businesses start fresh with a clean tax slate.

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