Manila:The Bureau of Internal Revenue (BIR) is considering expanding its tax abatement program to encompass small taxpayers.

According to Philippines News Agency, the current program targets micro taxpayers with annual gross sales below PHP3 million. BIR Commissioner Charlito Mendoza noted that the program has been effective in aiding taxpayers with settling obligations and clearing tax records. He expressed the bureau's intention to extend the one-time tax abatement to small taxpayers, with annual gross sales between PHP3 million and below PHP20 million, to provide similar relief to a broader range of small businesses and address unresolved cases.

The One-Time Abatement Program for micro taxpayers was featured by President Ferdinand R. Marcos Jr. during his 2026 State of the Nation Address, highlighting it as part of the government's support for micro-entrepreneurs. The program, active until the year's end, enables eligible micro taxpayers to apply for abatement on basic taxes and penalties totaling up to PHP80,000 per taxable year, with a PHP5,000 application fee, subject to certain conditions.

Data from the BIR indicates that as of October 24, the program has benefited 3,929 taxpayers and abated PHP266.79 million in taxes and penalties. There have been 17,101 applications filed, of which 15,050 were approved. Of the abated amount, PHP42.05 million represents basic taxes, while PHP224.74 million accounts for compromise penalties.

Mendoza emphasized the ongoing efforts of Revenue Regions and Revenue District Offices to assist qualified micro taxpayers in availing of the program, ensuring they are informed about the available relief and know where to seek help.