Summary
RMC No. 84-2026 clarifies provisions of RR No. 004-2026 on the one-time abatement of taxes and/or penalties for Micro Taxpayers, covering classification, filing requirements, the abatement fee, coverage, grounds for denial and the Certificate of Availment.
Key points
- Classification and documents. Micro Taxpayer status follows the IRIS-TRS classification as of December 31, 2025, which may be checked through ORUS or the RDO. Individuals and non-individuals each submit three copies of BIR Form No. 2121, IDs, authority documents for any representative, a Certificate of Existence of Outstanding Tax Liability/ies (CEOTL), assessment notices and withdrawal letters, as applicable. Only complete applications are received.
- CEOTL and filing. The CEOTL shows the outstanding liability as of December 31, 2025 and controls in deciding what is covered. The Issuing Office issues it within two (2) working days from the request. Applications are filed manually with the RDO where the taxpayer is registered, or the Head Office RDO for taxpayers with multiple branches.
- Abatement fee and payment. The fee is ₱5,000.00, paid with BIR Form No. 0605 using ATC MC350 (individual) or MC351 (non-individual) and Tax Type code “MA”. Payment is made within five (5) working days from filing, and proof of payment goes to the RDO within five (5) working days from payment, or the application is void. The fee is nonrefundable, but on denial or withdrawal it is applied as partial payment of the taxes and/or penalties.
- Coverage and threshold. Covered liabilities must not exceed ₱80,000.00 per taxable year, counting unpaid basic taxes and compromise penalties but not surcharges and interests. Only open cases existing as of December 31, 2025 are covered, and a separate application and fee apply to each taxable year. RATE and other tax fraud cases are covered only with written approval of the Commissioner of Internal Revenue or his authorized representative.
- Effects of filing. Collection enforcement for the covered taxable year is suspended while the application is pending, and resolution of a related administrative appeal is suspended. Micro Taxpayers are not audited because of the application, and the information is covered by Section 270 of the NIRC of 1997, as amended. No refund or tax credit arises from availment.
- Denial and Certificate of Availment. Denial is allowed only on listed grounds such as not being a Micro Taxpayer as of December 31, 2025, filing after December 31, 2026 (unless extended by the Secretary of Finance), threshold exceeded, unpaid fee, incomplete application, or material misrepresentation. The Certificate of Availment is issued within five (5) working days from receipt of proof of payment and closes only the covered cases for the identified taxable year. It is not a tax clearance.
Who is affected
- Micro Taxpayers (individual and non-individual)
- Micro Taxpayers with covered liabilities of not more than ₱80,000.00 per taxable year
Deadlines and effectivity
- Application deadline: December 31, 2026, based on date of filing
- Coverage: open cases existing as of December 31, 2025
- Fee payment: within five (5) working days from filing
- Certificate of Availment: within five (5) working days from proof of payment
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.