PhilExport backs BIR tax amnesty for micro firms

The Philippine Exporters Confederation, Inc. has expressed strong support for the Bureau of Internal Revenue’s (BIR) One-Time Tax Abatement Program for Micro Taxpayers, describing it as a practical reform that will ease the burden on small businesses while encouraging greater tax compliance.

In a statement signed by PhilExport President Sergio R. Ortiz-Luis Jr., the organization said the initiative will create a more inclusive and business-friendly tax environment by giving qualified micro enterprises the opportunity to settle outstanding tax liabilities under more favorable terms.

“The program promotes voluntary compliance while easing financial burdens that may have accumulated over the years,” PhilExport said. “It allows micro enterprises to redirect their limited resources toward productivity, job creation, and business growth instead of unresolved tax obligations.”

The BIR issued Revenue Regulations (RR) No. 4-2026 on June 22, 2026, outlining the guidelines for the one-time tax abatement program.

The initiative covers qualified micro taxpayers with annual gross sales not exceeding ₱3 million and total basic tax liabilities and/or penalties of up to ₱80,000 for a taxable year.

PHILEXPORT, a long-time advocate of micro, small, and medium enterprises (MSMEs), said the measure provides much-needed relief to businesses struggling with operational and financial challenges. By allowing them to clear outstanding obligations, the program also encourages more enterprises to participate in the formal economy and expand their operations.

Under RR No. 4-2026, the program covers tax liabilities existing as of December 31, 2025, including:

Delinquent tax accounts;

Preliminary or final tax assessments, whether disputed or undisputed; and

Open stop-filer cases, including those involving micro taxpayers that have already ceased business operations.

Qualified taxpayers may apply until December 31, 2026 through the Revenue District Office (RDO) that has jurisdiction over their registration. Applicants are required to pay a one-time abatement fee of ₱5,000 for each approved application.

Upon approval, the concerned RDO will issue a Certificate of Availment, confirming that the taxpayer has successfully availed of the program and that the covered tax case has been officially closed.

Revenue Regulations No. 4-2026 will take effect 15 days after its publication in the Official Gazette or on the BIR’s official website.

The tax abatement initiative complements the BIR’s recently introduced simplified process for closing business registrations, another reform aimed at helping inactive or shuttered micro enterprises resolve pending tax issues, update their records, and formally exit the tax system.

PhilExport commended the BIR for pursuing reforms that balance effective revenue collection with the realities faced by small businesses. The organization reiterated its support for government initiatives that promote ease of doing business, strengthen voluntary tax compliance, and enhance the competitiveness of Philippine enterprises.