Taxumo: Impact of Simplifying Taxation in the Philippines
“In life, three things should be certain. Death, Taxes — and Taxumo.”
Taxes, for any citizen in any country, is mandatory in order for a government to properly govern its people and to improve their economy. Essentially, as law-abiding citizens, we taxpayers (or legal residents of the country) would have to pay a percentage of our income to the government so that they could properly fulfill the needs of society. These endeavors are necessary for countries to thrive, given that it would be used for the good of all.
Generally, things have remained the same all throughout. The process of computing, filing, submitting and paying taxes has always been tedious and society is burdened by such. There is a dire need for innovation to come through in order to shorten the amount of time we have to spend in doing so and to minimize the problems faced in filing taxes.
There are numerous problems encountered when filing your taxes in the Philippines, even more for self-employed entrepreneurs, freelancers, and/or small business owners. The most peculiar and overlooked case is when individuals tend to forget to pay their taxes. Failure to pay taxes would result in a penalty of an additional 25% on top of their total fee. Another problem is the amount of time and energy wasted coupled with the stress caused by the sheer amount of paperwork involved in doing so. Individuals would have to allot time to properly declare their assets, calculate and then line up to pay to the Bureau of Internal Revenue (BIR) themselves. As of writing, the most there are two modes of payments: Manual and Online.
If one opts to pay taxes manually, there are Authorized Agent Banks (AAB) of the Revenue District Office (RDO) from where the business is registered with that are liable when it comes to paying tax, or they can pay directly to the RDO the company registered with. Results then would be queuing in lines for hours and nobody enjoys queuing for anything. For online payments, there are multiple platforms that support paying of taxes such as GCash Mobile Payment and Landbank’s Linkbiz Portal to name a few.
Fortunately, over time, in order to adapt to the new norms of society and laws, policies are reformed to suit the conditions in which we live in. A recent tax reform law was applied to the Philippines called TRAIN (Tax Reform for Acceleration and Inclusion) Act. This brought about several changes in how taxation works which changed the way citizens calculate their taxes due. Goes without saying, people would now have to study how this new policy affects them in order to avoid confusion and avoidable penalties moving forward.
All of these are problems that individuals face from time to time. Some have the luxury to hire accountants to do their taxation for them. These people would rather pay for someone to do it for them because they don’t have the leisure and time to do their taxes. But how about the new graduates who have no idea on how to file taxes? How about the self-employed entrepreneurs and freelancers who don’t have the budget to have someone file their taxes for them? What about the professionals who are to busy to handle all the legwork and paperwork? What if there’s a solution that entrepreneurs, freelancers, professionals, and startups could use to alleviate these problems?
Enter Taxumo, an automated platform that allows you to compute, file, and pay taxes in mere minutes. Their services include handling all the legwork for paying taxes and greatly simplify the process for everyone. The process is so simple that all that is needed to be done is to register on their platform and enter your income and expenses.
Taxumo was founded when EJ Arboleda, its founder, noticed that his wife Ginger kept worrying about this on a month-to-month basis, especially when it came to tax filing for her business. EJ realized that the process of filing taxes was consuming her time and drawing attention from actual work. There came a time when her accountant back then forgot to file their quarterly taxes and didn’t accomplish her bookkeeping requirements. This resulted in paying hefty penalties to the BIR. As a solution to Ginger’s problem, EJ built a platform that would automatically compute and file Ginger’s tax dues. It worked and they knew they had something that can potentially help small business owners and self-employed professionals avoid having the problems that they had.
Taxumo was launched in December of 2016. Since then they’ve grown steadily and become the #1 end-to-end online tax assistance platform operated by a passionate team dedicated to helping every Filipino freelancer, small business owner, and self-employed professionals to prepare and pay their taxes accordingly.
Taxumo is the first startup to be recognized by the Philippine government under the Board of Investment’s Investment Priority Plan. They were also one of the social enterprises of the first batch of the Social Impact Accelerator under the Innovation for Social Impact Partnership, which was supported by the Australian Government Department of Foreign Affairs and Trade. They were also recently awarded by the ASEAN Rice Bowl Startup Awards 2018 with 3 awards as Best Newcomer, Best Business Automation Tool and Best Fintech Startup.
“We want to help build inclusive growth by helping MSMEs and self-employed individuals around different regions focus on their passion, and ultimately, running their own businesses easily.”— EJ Arboleda
Taxumo plans to scale up and expand their services to various regions and assist Southeast Asian professionals and entrepreneurs in computing, filing and paying their taxes. Their impact can help MSMEs, freelancers, and self-employed individuals around the world elude themselves from stress and furthermore, having more time to focus on their own businesses.
Gone were the times of hassle and distress. With Taxumo, life with taxes just got way easier.
Check out Taxumo by clicking the link below! They also have tips and helpful information on how to properly file taxes and have updates regarding laws about taxation in the nation: