Millennials remain the backbone of the online taxpayer demographic, contributing nearly 75% of income filings in 2024. This generation, born between 1981 and 1996, continues to be a vital force in driving economic activity and generating tax revenue in the Philippines.

However, Gen Z (born after 1996) online taxpayers are quickly increasing, with their share of income filings rising from 9% in 2023 to 12.7% in 2024. This generation's growing economic influence is indicative of their early entry into the workforce and their preference for digital solutions in managing their financial responsibilities. Gen Z’s growing participation showcases their adaptability and innovative approach to economic engagement.

Female Millennials alone account for the highest percentage across all categories at 42.9%, followed by Female Gen Z at 10.6%. This indicates a strong presence of female representation in these younger generations within the socioeconomic spectrum.

Informal Employment Rises, as Low Income Earners Experience Downgrade in Socioeconomic Status

Despite facing economic challenges, the use of online tax payments has seen a significant rise. Tax collections through Taxumo have grown by approximately 58.45% year-on-year, reflecting a broader trend towards digitalization and ease of compliance. The Bureau of Internal Revenue (BIR) reported an 11% increase in tax collections in April, surpassing their target by Php35.114 billion.

However, informal employment remains a significant issue, with IBON Foundation estimating that 41.6% of the workforce, or 20.4 million people, are engaged in informal work. This includes domestic workers, self-employed individuals, and unpaid family workers. The prevalence of informal employment underscores the need for more robust economic policies and support systems.

The majority of Poor taxpayers who were Poor last year remained poor (65%.) 41% of individuals in the Low Income category have experienced a decline in their socioeconomic status coming from a higher earning bracket, while 40% have seen an improvement in their socioeconomic status.

None of the individuals in the Rich category have experienced a decline in their economic status, but 44% are newly Rich – finally breaking out of their High Income status from the previous year.

Service Providers are the Top Online Taxpayers

Businesses focused on services, such as events management, travel agencies, and social media agencies, lead the way in online tax filings. The IT &amp; Tech sector also has a strong presence, highlighting a growing technology-driven economy.

For a deeper dive into the insights and recommendations of the 2024 State of Online Taxation report, visit <a href="https://txmo.co/SOOT2024">txmo.co/SOOT2024</a>

Millennials are still Dominating, But Gen Zs are catching up Millennials remain the backbone of the online taxpayer demographic, contributing nearly 75% of income filings in 2024. This generation, born between 1981 and 1996, continues to be a vital force in driving economic activity and generating tax revenue in the Philippines.However, Gen Z (born after 1996) online taxpayers are quickly increasing, with their share of income filings rising from 9% in 2023 to 12.7% in 2024. This generation's growing economic influence is indicative of their early entry into the workforce and their preference for digital solutions in managing their financial responsibilities. Gen Z’s growing participation showcases their adaptability and innovative approach to economic engagement.Female Millennials alone account for the highest percentage across all categories at 42.9%, followed by Female Gen Z at 10.6%. This indicates a strong presence of female representation in these younger generations within the socioeconomic spectrum.<h2>Informal Employment Rises, as Low Income Earners Experience Downgrade in Socioeconomic Status</h2> Despite facing economic challenges, the use of online tax payments has seen a significant rise. Tax collections through Taxumo have grown by approximately 58.45% year-on-year, reflecting a broader trend towards digitalization and ease of compliance. The Bureau of Internal Revenue (BIR) reported an 11% increase in tax collections in April, surpassing their target by Php35.114 billion.However, informal employment remains a significant issue, with IBON Foundation estimating that 41.6% of the workforce, or 20.4 million people, are engaged in informal work. This includes domestic workers, self-employed individuals, and unpaid family workers. The prevalence of informal employment underscores the need for more robust economic policies and support systems.The majority of Poor taxpayers who were Poor last year remained poor (65%.) 41% of individuals in the Low Income category have experienced a decline in their socioeconomic status coming from a higher earning bracket, while 40% have seen an improvement in their socioeconomic status.None of the individuals in the Rich category have experienced a decline in their economic status, but 44% are newly Rich – finally breaking out of their High Income status from the previous year.<h2>Service Providers are the Top Online Taxpayers</h2>Businesses focused on services, such as events management, travel agencies, and social media agencies, lead the way in online tax filings. The IT &amp; Tech sector also has a strong presence, highlighting a growing technology-driven economy.For a deeper dive into the insights and recommendations of the 2024 State of Online Taxation report, visit <a href="https://txmo.co/SOOT2024">txmo.co/SOOT2024</a>

Accounting

Startups

Government offices / organizations

SMEs

Cloud service

Millennials are still Dominating, But Gen Zs are catching up

THE 2024 STATE OF ONLINE TAXATION: Amid financial insecurity, Millennials and Gen Z taxpayers drive economic growth – with Female Millennials taking the lead

With BIR's recent initiatives to formalize tax obligations for online sellers, including the latest extension announced in <a href="https://www.bir.gov.ph/index.php/revenue-issuances/revenue-memorandum-circulars/2024-revenue-memorandum-circulars.html">RMC No. 55-2024</a>, <a href="https://www.taxumo.com/?utm_source=VRITIMES+&amp;utm_medium=PR+Draft_VRITIMES&amp;utm_campaign=VRITIMES_CTA+Clicks&amp;utm_id=VRITIMES+PR+Media">Taxumo</a> aims to simplify the tax compliance process, ensuring that entrepreneurs can focus on growing their businesses without the added stress of navigating complex tax requirements.

Understanding that tax obligations can be daunting, Taxumo is committed to demystifying the process for online sellers. To this end, Taxumo is offering a free Tax 101 session specifically designed to help online entrepreneurs understand the basics of tax compliance, including how to issue receipts, understand the 1% withholding tax, and determine the most budget-friendly tax rate options for their businesses—whether be it for a Non-VAT or VAT entity, or to go with the 8% or graduated tax rate and which deduction method (OSD, or Itemized) should they use.

Free Tax Education to Empower Entrepreneurs

Taxumo's free Tax 101 sessions are crafted to equip online sellers with the knowledge and tools necessary to handle their tax obligations confidently. "We understand that many online sellers feel overwhelmed by taxes, and some even hesitate to register their businesses with the BIR," said Ginger Arboleda, Co-Founder at Taxumo. "Our goal is to remove these barriers by providing clear, straightforward tax guidance that supports the growth and sustainability of online businesses."

Online sellers interested in taking advantage of this free resource can book their Tax 101 session directly through this <a href="http://txmo.co/tax101-onlinesellers">calendar link here</a>. These informative sessions will cover essential topics such as basic tax principles, proper form filing based on the seller’s tax profile, and strategic planning for tax compliance.

Taxumo is stepping up to offer essential support to online sellers grappling with the Bureau of Internal Revenue's (BIR) new tax regulations and extended compliance deadlines.With BIR's recent initiatives to formalize tax obligations for online sellers, including the latest extension announced in <a href="https://www.bir.gov.ph/index.php/revenue-issuances/revenue-memorandum-circulars/2024-revenue-memorandum-circulars.html">RMC No. 55-2024</a>, <a href="https://www.taxumo.com/?utm_source=VRITIMES+&amp;utm_medium=PR+Draft_VRITIMES&amp;utm_campaign=VRITIMES_CTA+Clicks&amp;utm_id=VRITIMES+PR+Media">Taxumo</a> aims to simplify the tax compliance process, ensuring that entrepreneurs can focus on growing their businesses without the added stress of navigating complex tax requirements.Understanding that tax obligations can be daunting, Taxumo is committed to demystifying the process for online sellers. To this end, Taxumo is offering a free Tax 101 session specifically designed to help online entrepreneurs understand the basics of tax compliance, including how to issue receipts, understand the 1% withholding tax, and determine the most budget-friendly tax rate options for their businesses—whether be it for a Non-VAT or VAT entity, or to go with the 8% or graduated tax rate and which deduction method (OSD, or Itemized) should they use.Free Tax Education to Empower EntrepreneursTaxumo's free Tax 101 sessions are crafted to equip online sellers with the knowledge and tools necessary to handle their tax obligations confidently. "We understand that many online sellers feel overwhelmed by taxes, and some even hesitate to register their businesses with the BIR," said Ginger Arboleda, Co-Founder at Taxumo. "Our goal is to remove these barriers by providing clear, straightforward tax guidance that supports the growth and sustainability of online businesses."Book Your Free Tax Session TodayOnline sellers interested in taking advantage of this free resource can book their Tax 101 session directly through this <a href="http://txmo.co/tax101-onlinesellers">calendar link here</a>. These informative sessions will cover essential topics such as basic tax principles, proper form filing based on the seller’s tax profile, and strategic planning for tax compliance.

Internet service

E-commerce

Goods and services


Taxumo is stepping up to offer essential support to online sellers grappling with the Bureau of Internal Revenue's (BIR) new tax regulations and extended compliance deadlines.

Taxumo Extends Crucial Tax Support to Online Sellers Amid BIR's New Compliance Deadlines

HR / Recruitment

Skin care / Cosmetics / Hair products

Film / Drama

Magazines / Books / Publications

Marketing / Research

Diet / Health food / Supplement

Childbirth / Childcare

Interior / Furniture / Storage

Mobile device

Servers / Peripherals

Network / Network Equipment

System / Website / Application development

Electronic components / Semiconductors / Electrical equipment

Department stores / Supermarkets / Convenience stores / Stores

Wholeseller

Manga / Anime

Arcade Game

Toys / Playsets / Dolls

Car / Car Supplies

Motorcycles / Motorcycle Supplies

Daily necessities / Household goods

Garden / DIY

Shoes / Bags

Jewelry / Accessories

Kids / Baby / Maternity

Food / Sweets

Soft Drinks / Alcoholic drinks

Restaurant / Fast food / Streetfood

Eating at home / Delivery

Fitness / Healthcare

Medical / Hospital

Pharmaceuticals

Pets / Pet Supplies

Gifts / Flowers

Love / Marriage

Funeral

Hotels / inns

Travel / Sightseeing

Theme Park / Amusement park

Residential / Condominium

Commercial facilities / Office buildings

Architecture / Space design

Construction / Civil engineering

Advertising / Promotion / PR

Sales

Management Consulting

Think tank

Legal / Patent / Intellectual Property

Logistics / Warehouse / Cargo

Steel / Metal / Glass / Earth / Stone / Rubber

Chemistry

Electricity / Gas / Resources / Energy

Nature / Weather

School / University

Cram school / Preparatory school / Online education

Life insurance / Non-life insurance

Mobile app

Mobile games

Cooking / Home appliances

Health and Beauty appliances

Application

Ladies' Fashion

Men's Fashion

Environment / SGDs / Recycling

International activity

Full time job / Part-time job / Career

Music

Internet Service Provider / Line connection

Camera

AV equipment

Consumer Games

Outdoors / Mountain Climbing

Welfare / Nursing / Rehabilitation

Qualifications / Study Abroad / Language

Childcare / Early childhood education

Banks / Credit unions

Credit card / Loan

Securities / FX / Investment Trusts

Moving

Politics / Government / Local government

Volunteer

Agriculture / Forestry / Fisheries

Bicycle / Bicycle Supplies

Female Related

Venture Capitals

Coaching / Mentoring / Consultation

Automotive / Motorcycle / Bicycle

Automotive / Automotive Supplies

Interior / Goods

Real Estate / Architecture / Construction

Software

Blockchain / Web3

Security

Telecommunications / VoIP

Show Business

Comedy

Service

Taxumo is the pioneering, multi-awarded online tax filing and payment platform in the Philippines—the easiest way for Filipino small business owners, self-employed professionals, and freelancers to prepare, file, and pay their taxes, as well as register their businesses. With Taxumo, all you need to do is put in your income and expenses, and Taxumo does the rest (from computing your tax dues, to filling up BIR tax forms, and paying taxes online). 