RR No. 4-2026: One-Time Tax Abatement for Micro Taxpayers — Who Qualifies and How to Apply

RR No. 4-2026 gives micro taxpayers — those with annual gross sales below P3,000,000 — a one-time chance to clear old, small-value tax problems through an abatement of basic tax and penalties, rather than facing them at full value. It covers delinquent accounts, pending assessments, and stop-filer cases as of December 31, 2025, where the basic tax and penalties involved don’t exceed P80,000 per year, and it runs through December 31, 2026.

This guide covers who qualifies, what the abatement covers, what it costs to apply, and the deadline — grounded in RR No. 4-2026 as reported by Grant Thornton Philippines and Reyes Tacandong & Co..

What does RR No. 4-2026 do? #

RR No. 4-2026 lets a micro taxpayer resolve a defined set of old tax problems in one action, by paying a fixed application fee to have the underlying basic tax and/or penalties, surcharges, and interest abated. Rather than disputing or slowly paying down a small, older liability, an eligible taxpayer applies once, pays the fee, and the covered liability is cleared. The program is explicitly framed as a “one-time” remedy — it targets a defined backlog as of a fixed date, not an ongoing settlement option.

Who qualifies as a micro taxpayer? #

A micro taxpayer under RR No. 4-2026 is an individual or entity — sole proprietor, professional, or corporation — whose gross sales for the year are less than P3,000,000. This threshold sits below the P3,000,000 VAT registration threshold under the NIRC, meaning most taxpayers who qualify are also non-VAT registered, though the abatement itself is a separate, independent eligibility test based purely on gross sales.

What liabilities does the abatement cover? #

The abatement applies to delinquent or assessed basic tax and/or penalties not exceeding P80,000 per year, as of December 31, 2025. That cutoff date matters: it fixes the scope of the program to a defined backlog rather than an open-ended relief measure for any future liability.

Categories of liability covered:

• Delinquent accounts
• Pending administrative protests
• Tax collection cases
• Court disputes
• Pending compromise requests
• Other cases specified under the regulation, including stop-filer cases

If the basic tax and penalties for a given year exceed P80,000, that year’s liability falls outside the program and needs to be resolved through the BIR’s regular assessment, protest, or compromise channels instead.

How do you apply, and what does it cost? #

Applying for the abatement means filing a specific application form at the right Revenue District Office (RDO) and paying a fixed, non-refundable fee — separate from whatever the abated liability itself would have been.

1. File the One-Time Abatement for Micro Taxpayers Application Form at the RDO with jurisdiction over the taxpayer’s registration
2. Pay the P5,000 application fee using BIR Form 0605
3. Submit proof of payment within five working days of filing the application
4. Wait for the RDO’s determination — if the application is denied, the P5,000 fee isn’t refunded but is instead credited as partial payment against the liability

Because the fee is non-refundable either way, it’s worth confirming eligibility — gross sales under P3,000,000, and a covered liability under P80,000 as of December 31, 2025 — before filing.

When does the program end? #

Qualified taxpayers can avail of the RR No. 4-2026 abatement until December 31, 2026, unless the Secretary of Finance extends it on the Commissioner of Internal Revenue’s recommendation. Since the deadline is tied to a specific calendar date rather than a rolling window, a micro taxpayer weighing whether to apply should treat December 31, 2026 as a firm cutoff unless and until an extension is formally announced.

Frequently asked questions #

What does RR No. 4-2026 do? #

RR No. 4-2026 gives micro taxpayers a one-time opportunity to settle outstanding tax liabilities — delinquent accounts, pending assessments, and stop-filer cases as of December 31, 2025 — through an abatement of the basic tax and/or penalties, surcharges, and interest, upon payment of a fixed application fee.

Who qualifies as a micro taxpayer under RR No. 4-2026? #

A micro taxpayer under RR No. 4-2026 is an individual or entity whose gross sales for the year are less than P3,000,000.

What liabilities does the abatement cover? #

The abatement covers delinquent or assessed basic tax and/or penalties not exceeding P80,000 per year as of December 31, 2025, including delinquent accounts, pending administrative protests, tax collection cases, court disputes, and pending compromise requests.

What does it cost to apply for the abatement? #

Applicants pay a non-refundable P5,000 fee via BIR Form 0605, submitted within five working days of filing the One-Time Abatement for Micro Taxpayers Application Form at the Revenue District Office with jurisdiction over the taxpayer. If the application is denied, the fee is applied as partial payment against the liability instead of being returned.

When does the RR No. 4-2026 abatement program end? #

Qualified taxpayers can avail of the abatement until December 31, 2026, unless the Secretary of Finance extends the program on the recommendation of the Commissioner of Internal Revenue.

Summary #

RR No. 4-2026 gives micro taxpayers — gross sales under P3,000,000 — a one-time way to clear delinquent accounts, assessments, and stop-filer cases from 2025 and earlier, where the basic tax and penalties don’t exceed P80,000, by filing an application and paying a P5,000 fee at the taxpayer’s RDO before December 31, 2026. Once a liability is behind you, staying current on ongoing filings — DAT files, withholding certificates, and VAT reporting — is what keeps a new one from building up. For the deadlines that matter going forward, see 2026 BIR Tax Filing Deadlines Calendar and BIR Late Filing Penalties.