BIR Tax Abatement Guide: RR No. 4-2026 for Micro Taxpayers
Complete guide to BIR Revenue Regulations No. 4-2026 tax abatement program for micro taxpayers. Learn eligibility, application process, and how to clear tax liabilities up to ₱80,000 for just ₱5,000.
What you'll learn in this BIR tax abatement guide
This BIR Tax Abatement Guide for RR No. 4-2026 explains the one-time tax relief program for micro taxpayers, including eligibility requirements, the step-by-step application process, payment procedures, and common mistakes to avoid.
For related tax and business guides, also see our BIR Business Registration Guide , Where to Register Your Business & BIR RDO Guide , and DTI Business Name Registration Guide .
What is RR No. 4-2026?
Revenue Regulations No. 4-2026 is a special tax relief program from the Bureau of Internal Revenue (BIR) that allows micro taxpayers to settle their delinquent tax accounts and penalties through a one-time abatement. This regulation, issued on June 18, 2026, provides an opportunity for small business owners with unpaid taxes to clear their records by paying a fixed abatement fee instead of the full amount due.
The program covers delinquent accounts, tax assessments (whether disputed or not), and stop-filer cases that existed as of December 31, 2025. It's designed to help micro taxpayers who may have fallen behind on their tax obligations to get back into compliance without facing the full burden of accumulated penalties and interest.
Why You Should Avail of This Abatement
Availing of RR No. 4-2026 offers significant benefits for micro taxpayers with outstanding tax liabilities:
Significant Savings
Pay only ₱5,000 abatement fee instead of full tax liabilities and penalties up to ₱80,000
Clean Tax Record
Clear delinquent accounts and stop-filer cases to restore good standing with BIR
Avoid Legal Complications
Settle disputed cases and pending criminal violations before they escalate to court
Peace of Mind
Eliminate the stress of unpaid taxes and focus on growing your business
Who Qualifies as a Micro Taxpayer?
To qualify for RR No. 4-2026, you must meet the definition of a micro taxpayer and have eligible tax cases:
Micro Taxpayer Definition
A taxpayer whose gross sales for the year is less than ₱3,000,000.00, as defined under RR No. 8-2024.
Eligible Tax Cases
Your tax cases must meet these criteria:
- Delinquent accounts as of December 31, 2025
- Assessments (preliminary or final, disputed or not) as of December 31, 2025
- Open stop-filer cases as of December 31, 2025
- Basic tax and/or penalties not exceeding ₱80,000.00 per taxable year
Who Can Avail
Any person or taxpayer, whether natural or juridical, or their duly authorized representative, classified as a micro taxpayer can avail. This includes:
- Active micro taxpayers with delinquent accounts
- Micro taxpayers who have ceased business operations
- Taxpayers with pending administrative protests
- Taxpayers with cases in various stages of litigation
Step-by-Step Application Process
Follow these steps to apply for tax abatement under RR No. 4-2026:
Step 1: Prepare Your Application
Secure the prescribed BIR Form (Annex "A") for abatement application. Fill it out completely with accurate information.
Step 2: Specify Tax Details
Indicate the tax type(s) and basic amount due (excluding interest) for each covered case. This information is required for each taxable year you're applying for.
Step 3: File at Your RDO
Submit your application manually to the Revenue District Office (RDO) having jurisdiction over your taxpayer registration.
Step 4: Wait for Acceptance
The RDO will review your application. If accepted, you'll be notified to proceed with payment.
Step 5: Pay Abatement Fee
Pay the ₱5,000.00 abatement fee using BIR Form No. 0605 within 5 working days from application filing.
Step 6: Submit Proof of Payment
Submit proof of payment to your RDO within 5 working days from payment date.
Step 7: Receive Certificate
Upon completion of requirements, the RDO will issue your Certificate of Availment within 5 working days.
Checklist for Application
Before filing your application, ensure you have the following:
Required Information
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Taxpayer identification number (TIN)
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Tax type(s) for each covered case
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Basic amount due (excluding interest) for each case
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Taxable year for each case
Documents to Prepare
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BIR Form (Annex "A") - Application for Abatement
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Valid ID (if filing in person)
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Authorization letter (if filed by representative)
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BIR Form No. 0605 (for abatement fee payment)
Important Reminders
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File on a per-taxable-year basis
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Specify tax type and basic amount due - failure to do so results in denial
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Pay within 5 working days from application filing
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Submit proof of payment within 5 working days from payment
Decision Criteria
Before applying for abatement, consider these factors to determine if it's the right option for you:
When to Avail of Abatement
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Your total tax liabilities and penalties are ₱80,000 or less
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Your gross sales are less than ₱3,000,000 (micro taxpayer)
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You have delinquent accounts or assessments as of December 31, 2025
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You can afford the ₱5,000 abatement fee
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You want to clear your tax record quickly
When to Consider Other Options
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Your tax liabilities exceed ₱80,000
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Your gross sales are ₱3,000,000 or more (not a micro taxpayer)
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You have pending compromise settlement requests (may be better option)
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You believe the assessment is incorrect and want to contest it
Comparison with Other Options
RR No. 4-2026 abatement vs. Compromise Settlement:
- Abatement: Fixed ₱5,000 fee, simpler process, faster resolution
- Compromise Settlement: May offer lower payment for very large liabilities, but more complex evaluation process
Payment Process
Once your application is accepted, follow these payment procedures:
Abatement Fee
The abatement fee is a fixed amount of ₱5,000.00 regardless of your actual tax liability amount (as long as it's within the ₱80,000 threshold).
Payment Method
Pay using BIR Form No. 0605 either:
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Electronically (via authorized payment channels)
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Manually (at authorized agent banks or BIR offices)
Payment must comply with RR No. 4-2024 and RMC No. 87-2024 guidelines.
Critical Deadlines
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Pay within 5 working days from filing your application
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Submit proof of payment within 5 working days from payment date
What Happens If You Miss Deadlines
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Failure to pay within 5 working days: Application remains pending but not voided
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Failure to submit proof of payment: Application automatically voided
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If voided, you can re-file within the availment period (until December 31, 2026)
Important Note on Refunds
The ₱5,000.00 abatement fee is non-refundable even if your application is withdrawn or denied. If denied, the fee will be applied as partial payment toward the taxes or penalties you sought to abate.
Common Mistakes to Avoid
Avoid these pitfalls when applying for tax abatement:
Failing to Specify Required Information
Not indicating tax type(s) and basic amount due will result in automatic denial of your application.
Missing Payment Deadlines
Not paying within 5 working days or failing to submit proof of payment on time will void your application.
Applying Without Confirming Eligibility
Filing without verifying you're a micro taxpayer (gross sales < ₱3M) or that your liabilities are within the ₱80K threshold wastes time and the non-refundable fee.
Filing at the Wrong RDO
Submitting your application to an RDO without jurisdiction over your registration will cause delays or rejection.
Waiting Too Long to Apply
The availment period ends December 31, 2026. Don't wait until the last minute as processing takes time and issues may arise.
Not Keeping Copies
Failing to keep copies of your application, payment receipt, and Certificate of Availment for your records.
Expecting Refund of Abatement Fee
The ₱5,000 fee is non-refundable even if your application is withdrawn or denied. It will only be applied as partial payment if denied.
Conclusion
RR No. 4-2026 offers micro taxpayers a valuable opportunity to settle tax delinquencies and penalties at a fraction of the cost. With a fixed ₱5,000 abatement fee, eligible taxpayers can clear liabilities up to ₱80,000 and restore their good standing with the BIR.
Key Takeaways
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Micro taxpayers (gross sales < ₱3M) can avail of tax abatement
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Fixed ₱5,000 fee covers liabilities up to ₱80,000 per taxable year
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Availment period runs until December 31, 2026
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Strict deadlines: pay within 5 working days, submit proof within 5 working days
Next Steps
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Verify your eligibility as a micro taxpayer
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Gather your tax records and determine your total liabilities
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Visit your RDO to file your abatement application
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Pay the ₱5,000 fee and submit proof of payment on time
Need Help?
If you have complex tax cases or need assistance with your application, consider consulting a tax professional or contacting your RDO for guidance. The BIR website also provides additional resources and contact information for taxpayer assistance.
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