Over 2,000 micro taxpayers seek tax abatement program

MANILA, Philippines — More than 2,000 micro taxpayers have sought from the Bureau of Internal Revenue (BIR) under its one-time tax abatement program, with availments accelerating in recent weeks.

BIR data showed that 2,379 micro taxpayers applied for the program as of Oct. 3, with total tax liabilities and penalties abated reaching P149.35 million.

Of this, 1,027 micro taxpayers applied during the latest 15-day period alone over the same period, reflecting a sharp acceleration in demand for the program.

The program, which took effect on July 7, allows qualified micro taxpayers to settle covered liabilities arising from open cases. It covers qualified micro taxpayers with eligible delinquent accounts, tax assessments and open stop-filer cases.

BIR Commissioner Charlito Martin Mendoza said the rising applications coincide with intensified efforts by the agency’s Revenue Regions and Revenue District Offices to reach qualified micro taxpayers in their respective areas.

“We are now reaching more micro taxpayers, and more of them are taking the opportunity to settle their obligations and return to regular compliance,” he said in Filipino.

The BIR said 2,379 micro taxpayers had filed 10,229 applications under the program, of which 8,464 have been approved.

The P149.35 million abated consists of P28.24 million in basic taxes and P121.12 million in compromise penalties, while P42.32 million in abatement fees had been paid. Mendoza says taxpayers have until Dec. 31 to avail themselves of the program.

To qualify, eligible taxpayers must have covered basic taxes and/or penalties totaling no more than P80,000 for a taxable year, subject to the BIR’s prescribed conditions.

Upon approval, the taxpayer pays an abatement fee of P5,000 per tax type per taxable year abated.

In addition, the BIR said it also made payment under the program more convenient by updating the Offline eBIRForms Package to support abatement payments through BIR Form 0605.