Are you like me who dread going to a government office such as LTO or NBI because of long lines, uncomfortable waiting areas or grouchy government employees? Soobrang hassle right? Some of us even take a leave from work just for this! So when I decided to switch from a corporate tax-paying employee to a full-blown freelancer, I knew I have to pay all of my government-mandated deductions manually (just the thought makes me groan). So a month ago when I launched my virtual assistance business I knew I had to register to BIR. And because I do not have the time and patience to process everything, I hired my accountant friend to do it for me. If you want to DIY, here’s a pretty detailed guide on how to do it.
After she got everything sorted out for me — she handed me a list of payment schedule that I should follow religiously or face exorbitant amount of penalties from BIR. She also gave me a bunch of forms that I need to fill-up monthly, quarterly and annually. Damn, fulfilling my duty as a tax payer sure is a hassle! How am I going to do this religiously when I can’t even pay my phone bill on time?! I try to enroll everything that can be paid online and those that I still have to pay manually is constantly put off until I absolutely have to! I KNOW I’M A HORRIBLE HUMAN BEING. Choz.
So anyway, my inner laziness prompted me to Google ways to pay taxes online and alas, I discovered Taxumo.
Taxumo makes it easy for every Filipino small business owner and professional to prepare and pay for their taxes!
Taxumo vs. e-BIR Forms
Taxumo is a software-as-a-service that is stored in the cloud, which means you an access it anytime, anywhere as long as you have internet connection. Compared to eBIR eforms, Taxumo (1) fills out your forms automatically just based on your profile and the transactions you entered; and (2) allows you to pay directly and ONLINE through Taxumo’s wide array of partner banks, so no more need to fall in long lines at the bank. In a nutshell, we are here to help you fulfil your duty as a tax payer in the most convenient and hassle-free way! Source
How it Works:
1. Sign-up and complete your business profile.
- You need to have a TIN number and a certificate of registration from BIR (you need to upload a photo as proof)
- Specify your allowable deduction: OSD or Itemized. Learn the difference here.
- Add your signature. I logged in to Taxumo using my smartphone and signed using my finger, better if you have a stylus.
2. Add your income and expenses as they come and go.
Note that if you selected OSD you are not required to add in your expenses since your allowable deduction will be defaulted to a fixed 40%. (Disclaimer: The numbers below are for illustration purposes only.)
3. Check the dashboard for the schedule of payments.
Deadline for payments:
Monthly Percentage Tax – every 15th of the month
Quarterly Income Tax – every 8th of April, August and November
Annual Income Tax – April 8 of the following year
4. When you’re ready to pay, click on the next yellow bar. Follow the prompts until you get to this screen:
As you can see, the BIR Form is already pre-filled for you and is computed based on the income/expense added in your account.
Taxumo offers several payment options but my suggestion is to use Online Banking because it has the lowest gateway fee (10php).
5. As soon as you’ve completed the payment, you will get an email notification that tax filing is in process.
6. After several days you will get another email confirming that they have remitted your payment to BIR.
7. Log back in to Taxumo and click on the green bar on your Dashboard to view the Payment Confirmation.
You may save the PDF and print it out just in case you want a hard copy of your remittance record.
And it’s done! See how smooth and easy that is? Especially for people like me who don’t know squat about taxes and hates math (everything is automatically computed for you)!
What I love about the platform is that everything is so easy to understand. Because I had my accountant friend register to BIR for me, I don’t really know much about the process (she tried to explain but my brain is rejecting the information, lol). Taxumo has made their layout super simple and friendly to use, not to mention I love the colors — such an eye-candy and makes me a little excited to pay! 🙂
My experience so far with their customer support has been great, all of my questions have been addressed and the minor issue I had was treated with priority. They called me twice just to check if I’m happy and if there’s anything I need to make the process easier for me. Not sure if this was because I have yet to switch to paid subscription at that time but I felt like they are genuinely concerned about me. I hope they are consistent in providing great customer support because as a Filipino consumer this is something we could use a lot of, right?!
You can pay per month but you save a hell of a lot if you choose to pay annually. Going Basic allows you to file monthly percentage and quarterly income taxes whereas the Premium Plan allows you to file annual income tax as well.
And hey, if you sign up now — you get 1,500php OFF because it is their 1st year anniversary! Get an additional 500php OFF if you use a referral code (use mine: GEEKY)!
I subscribed to their Premium Annual plan because I want the annual income tax included so all of my tax payments are in one place. But if you can forego the annual income tax and are willing to file it once a year, then the Basic Annual works and if you subscribe now it’s only 2,495php (remember to you use my referral code GEEKY).
I think that for as little as 207php per month Taxumo is totally worth it for busy freelancers and entrepreneurs who don’t have the time to manually compute their income and expenses, fill out forms and file them to BIR. I know a lot of home-based workers who admit that they are not paying taxes because it is such as hassle to register and follow through with the monthly payments. Well — you can’t say that anymore! As a tax-paying citizen I feel like I have extra powers now such as applying for a home loan or complain about the horrendous traffic in Manila, LOL.
How about you, are you a tax-paying freelancer too? How do you currently pay your taxes? 🙂
Disclaimer: This is NOT a sponsored post. This is a pure and unbiased review of Taxumo.