As part of the government’s thrust to spur the digital startup industry and technological innovations in the Philippines, pioneering online tax assistance platform Taxumo was recently granted a four-year income tax holiday so it can focus its resources on growing its business.
This recent move makes Taxumo the first digital startup firm approved by the Board of Investments (BOI) under the 2017 IPP (Investment Priorities Plan).
Taxumo is an easy online tax filing and payment web app that revolutionizes tax processing for Filipino solo entrepreneurs, self-employed professionals, and freelancers.
Says EJ Arboleda, Taxumo’s CEO: “We are grateful that the BOI has given the attention to Taxumo, which sets a precedent for the tech startup industry to get the support it needs to move forward, which in turn will generate jobs and ease business operations. We are proud to be leading the way for the industry.”
“Digitalization is a great equalizer that levels the playing field among small and large firms. Adopting an innovation-led business model, like the integration of digital strategies and e-commerce, enables MSMEs to scale-up their status and become competitive in the long run,” Trade Secretary and BOI Chairman Ramon M. Lopez said. “We must effectively tap the potential of MSMEs as it forms a significant part in of our country’s growth resurgence and nurturing them not just as backbones of our economy but also one of the prime movers of both domestic and regional growth.”
Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said: “BOI supports entrepreneurial startups as an engine for economic development and as a key driver of economic diversification and job creation. While the Philippine start-ups sector is at a nascent stage, our large young internet-savvy population and growing economy make the country a hot-bed for technology-driven activities.” He stressed “the need to have a forward-thinking mentality that is anchored on providing entrepreneurs and startups with the necessary support to start and grow right from the earliest stages of development.”
Through Taxumo, users simply enter their income and expenses in the system regularly, which then provides real-time information on tax dues. The platform also autofills the relevant tax forms (BIR Form 2551M for Monthly Percentage Tax Payments, Form 1701Q for Quarterly Income Tax Payments, and soon, Form 1701 for Annual Income Tax Payments) with calculations based on the data entered by the user. From there, they can easily file and pay their tax dues online through Taxumo as well.
Users can avail of paid subscription packages on the platform, depending on their needs.